Susanna Hasenoehrl

“Should I focus on decarbonization or circularity first?” This is a question I often hear from our customers in the durable goods sector. New regulations, generally under the #CSRD umbrella, mandate both decarbonization commitments and circularity through Digital Product Passports (DPPs).  Given the timing of the regulations, it might seem logical to tackle decarbonization first and address circularity later. But here's why this is a flawed approach: Durable goods come with significant “upstream” footprints in their supplier materials and components—often 5x to 20x greater than the emissions from their own factories. The carbon-intensive journey includes material extraction, transportation, processing, and component manufacturing. While each of these steps will incrementally decarbonize on their own, some will be harder and take longer. Circularity can eliminate many of these steps for next product generations. Imagine recycling instead of extracting raw materials, remanufacturing instead of processing new ones, or reusing parts rather than manufacturing from scratch. We’ve seen remanufactured products be 60%-90% more carbon-efficient than traditional ones, all while offering “like new” performance and warranties. Financially, product modularity is essential for remanufacturing and reuse markets, ensuring second-life parts have versatile demand.  Automotive, heavy equipment, power generation, and other verticals have shown the success of circular economy business models over the last 2-3 decades. Knowing that circularity will be mandated, it’s time to think modularly so that circularity is a profit driver rather than an “extended producer responsibility” cost.  Making the switch does require lead times, so it’s best to start now to meet mid-term carbon targets, circularity mandates, and financial expectations. TL;DR – #circularity is the smart choice

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A huge huge milestone! Only three years ago, companies and investors were mired in an “alphabet soup” of reporting frameworks and standards. All that has changed now and the ISSB is the global standard. There are some differences in the details but you’ll see the same reporting requirements running through the ISSB standards, the CSRD’s climate reporting requirements, CA SB 253 and 261, the SEC rule, and now the CDP questionnaire. It’s just huge progress. We no longer hear “I don’t know what to report.” That has become clear and substantially harmonized.

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The Taskforce on Nature-related Financial Disclosures (TNFD) and EFRAG have jointly published a mapping of the correspondence between the European Sustainability Reporting Standards (ESRS) and the TNFD’s recommended disclosures and metrics, illustrating the high level of commonality achieved. The 14 of the disclosures recommended by the TNFD and the ESRS requirements are both designed to provide relevant and faithful information on nature-related sustainability matters.

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The concept of #materiality sits at the heart of #bestpractice identification, management and reporting of #sustainability risks and opportunities. It guides the prioritisation of those risks and opportunities that can significantly impact our business and/or are most important to our stakeholders. As a demonstration of our #sustainabilityleadership, New Forests regularly assesses materiality, guided by globally leading sustainability-related reporting frameworks including the Integrated Reporting (IR) Framework, the Global Reporting Initiative (GRI), the FSB Task Force on Climate-related Financial Disclosures (TCFD), the Taskforce on Nature-related Financial Disclosures (TNFD) and the nascent International Sustainability Standards Board (ISSB). Done well, a materiality assessment should do more than inform our sustainability management and reporting. A refreshed understanding of the environmental, social, and governance themes that are most important to stakeholders is a valuable input to strategic planning, helping to inform business strategy and resource allocation and guide performance measurement. This year we evolved our Materiality Assessment to incorporate a double materiality approach to understand the environmental, social or governance themes of significant to our stakeholders (impact materiality), the themes which most affect New Forests’ business going forward (financial materiality) and those themes which are material from both an impact and financial lens. We also expanded the number and types of stakeholders engaged, for example, including Environmental NGOs as a proxy for the environment, given our reliance on nature as manager of nature-based real assets and natural capital strategies. Well done Carly Hammond for pursuing a novel approach to gaining input from our stakeholders and her considered way of bringing it all together. If you want to know the findings from our 2024 Materiality Assessment, I encourage you to read our Report, that can be found here https://lnkd.in/gepKBiq6.

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A huge partnership - the GHG Protocol and the IFRS Foundation! Does this solidify the International Sustainability Standards Board (ISSB)'s place as the global sustainability standard setter? I think so, at least as to climate disclosure standards. Recall, the #issb is the organization that has established standards that will form the global baseline for sustainability reporting, harmonizing what had been a fragmented reporting environment. It has started with general and climate disclosure standards and will go on to create standards on other sustainability topics. The #GHGProtocol is the accounting standard that defines how carbon is accounted for and created the concept of Scopes 1, 2, and 3 emissions. This partnership will drive further harmonization in global climate reporting. 💪

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I have long believed your why matters less than your how ! If you start the process of becoming more #sustainable - for example in your #supplychain, measuring the #impact you have on natural and human resources and chart improvement plans with clear actions and deliverables. Whether you believe climate changes part of climate cycle or man-made industrial revolution / lack of care and whether you’re doing it because of…. 💚belief that we should do better ✍️ Law 📈 To win new customers & business 🧑‍🔬your boss told you to 💦you are forced to by Mother Nature 🛌 to sleep better at night 💰to get funding Doesn’t matter so much as HOW you do it. Whilst much is written about finding your why your purpose etc I have had many discussion about the importance of how. People berate others who only do things because they have to, And yes one volunteer maybe worth 10 pressed men… initially but wherever you start soon you realise that the actions of sustainability ARE about your survival and it’s possible to thrive and sooner or later your WHY may change. Your HOW is the deliberate action of changing and choosing your future. Stop saying he’s only doing it because he has to, start supporting the HOW. Start now whatever your why. Pic - the one eyed ridgeback accompanying us to vote in the village. Voting is part of how. Her why was to get a walk in, her how was to join in and appear keen to vote 😎😉😆 whilst she couldnt vote the result was we all got what we wanted.

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23-27 September join SDI meetings and follow on implementing the sustainability guidelines! #SDGs #ESG #sustainability #circulareconomy #innovation

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"In a letter to the Science Based Targets initiative’s board of trustees, Leyla Ertur, H&M’s head of sustainability, said the company was concerned about the possibility of companies using carbon offsets to lower their overall carbon emissions by purchasing credits for carbon removal projects, saying that action should be taken by companies within their value chains to reduce greenhouse gas emissions." ✅ I agree. Companies should focus more on reducing ghg emissions within their supply chain rather than using carbon offsets. ✅ But H&M is a part of the fast fashion industry. ✅ The fashion industry is responsible for approximately 10 percent of global CO2 emissions and uses at least 1.5 trillion gallons of water every year. ✅ Buy less, use longer #decarbonization #ghg #fastfashion #water #landfills

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Ecolab’s inclusion in the FTSE4Good Index for the 10th consecutive year is further proof that companies can achieve sustainability success and profitability. Year after year, we have met our financial goals while delivering a positive impact on the planet. Our inclusion in the Index is yet another example of how these achievements can go hand in hand.  https://lnkd.in/g8i-VgUV

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Great insights, Zyad Hatquai! While I wholeheartedly agree that embedding sustainability into daily practice and focusing on real impact is key, it’s also crucial to remember that without measurable outcomes, achieving meaningful change can be challenging. Reporting isn’t the goal—but it is a powerful tool. It helps us track progress, assess effectiveness, and hold ourselves accountable to the short, medium, and long-term impacts we aim to deliver. Reporting enables transparency, which in turn drives accountability and responsibility—ensuring that we take meaningful steps to continuously improve. To drive meaningful change, we need to strike a balance: focus on impactful sustainability practices while leveraging reporting as a way to measure, manage, and enhance our approach. When done right, reporting becomes a catalyst, not just a mirror—guiding us toward better decisions and sustainable outcomes. Let’s continue to drive action and use reporting to strengthen our journey toward building a better future. #Sustainability #SustainabilityPractice #Impact #ESG #CircularEconomy #Transparency #Accountability #SustainableBusiness”

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EUDR: European Commission Proposes 12-Month Phase-In Period The implementation of the EU Deforestation-free Regulation (#EUDR) will bring significant changes to the industry landscape. To support stakeholders in this transition, the European Commission has proposed a 12-month phase-in period. If approved by the European Parliament and Council, the regulation will apply to large companies from 30 December 2025 and to small and micro companies from 30 June 2026. What does this mean for companies? This extra time wouldn't mean a delay, but rather a phase-in period for companies to prepare and ensure compliance ahead of the deadlines. Companies should do everything they can to comply as early as possible — even though they wouldn't face penalties if they don't meet the 2025 deadline. Importantly, this phase-in period would not change the objectives or substance of the law. How can companies prepare? Tools such as the IntegrityNext EUDR solution simplify EUDR compliance by streamlining the entire process, from data collection and risk assessment to reporting. The European Commission has also published additional EUDR guidance documents (https://lnkd.in/dZqeshNM) and updated its FAQs (https://lnkd.in/d6KUKMh9) to support companies in their compliance efforts. For further information on the proposal: https://lnkd.in/dFUCY-Yh

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ADAPTATION: This Financial Times article on "Financing Climate Adaptation" underlines the urgency but also the opportunity to invest in resilience, particularly for vulnerable communities. Hurricane #Beryl's record-breaking intensity reminds us of the growing impact of climate change. Leveraging nature-based solutions supporting resilient infrastructure protects at-risk populations. Integrating financial innovation alongside environmental stewardship creates sustainable and impactful change. Debunking some myths and major takeaways of this article are: 1. Adaptation is a major investment opportunity ❇ 2. Adaptation is critical for business growth ❇ 3. Adaptation investments deliver above market returns ❇ Read the article: https://lnkd.in/eZNVaNdF #ClimateAction #Sustainability #Resilience #ImpactInvesting #NatureBasedSolutions #CoastalProtection #ClimateChangeAdaptation Resilienture #highlight

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We often talk about the role that digital technologies can play in the transition to a lower-carbon world. A report by Google and Boston Consulting Group (BCG) found that AI has the potential to help mitigate 5-10% of global greenhouse gas emissions by 2030. However, we know that we can’t do this alone. Addressing climate change - one of the greatest challenges facing the world today - requires collaboration across business, government, academia and community organizations. Today, the European Green Digital Coalition laid the groundwork towards a more sustainable future with its release of a new, robust methodology to measure the impact of green digital technologies with contributions from several organizations and companies, including Google. We look forward to our continued collaboration with the European Green Digital Coalition to advance Europe’s sustainability agenda. #EGDC #GreenDigitalCoalition

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If we think back to 2020, we were mired in an “alphabet soup” of reporting frameworks. The common refrain from companies and investors was that we needed harmonization. The IFRS Foundation and its International Sustainability Standards Board (ISSB) have done monumental work in service of that goal as reflected in the report issued today. #corporatereporting #financialreporting #sustainability https://lnkd.in/epGkbDXr

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