Chestnut Carbon’s Post

Big Four audit and consulting firm EY is the only major global business to have claimed that it is already "carbon negative", through the use of carbon offsets. Is this sort of thing helpful? In the latest FT Moral Money newsletter, I looked at what business leaders need to think about when developing a corporate climate plan: https://lnkd.in/eteiSKG3

Great piece Simon Mundy - good examples here that show the challenges for comms teams in keeping pace with change. While we need businesses like EY to take a position of leadership and demonstrate ambitions for net zero, the reality is that this process is increasingly complex. It's a tricky balance to strike for all businesses, but more open conversations around these realities is vital.

A very interesting article on the FT on a slow-down of corporates towards their net zero targets. The article, however, highlights how some investors are focusing much more on companies’ #sustainability and #esg plans rather than #sustainable reporting. Furthermore, governments and regulators need to take decisive actions on supporting the transition going forward, otherwise it will be extremely challenging for the corporate world to succeed. “...But large investors who believe that climate change creates long-term risks to financial returns are increasingly pressing for evidence of action, rather than ambition. For several years, groups such as Climate Action 100+, made up of 700 large investors, have pushed for companies to set net zero targets and outline risks around greenhouse gas emissions. Last year it shifted focus, moving away from what companies are disclosing to how they are actually implementing those climate plans. But many investors also say that companies have their hands tied by an unstable regulatory environment.”

Over the past year, we have seen significant steps toward climate neutrality in the EU. From the #MethaneRegulation to the #NZIA, explore some of the recent policy initiatives from the EU institutions.    The EU Methane Regulation 🔥     The European Parliament and the Council of the European Union gave the green light for the EU’s first Methane Regulation. This climate law is crucial for reducing global #methane pollution from the energy sector and will enact a groundbreaking import standard to drastically #CutMethane emissions from imported oil and gas.      The Net Zero Industry Act 🇪🇺     The EU institutions reached an agreement on this flagship, options-based clean energy policy. The #NZIA proposes a bold plan to accelerate carbon capture and storage technologies and reach industrial decarbonisation.      Heavy-duty vehicle standards 🚛     The EU institutions agreed CO2 emission reduction standards for heavy-duty vehicles. With heavy-duty vehicles contributing to 6% of the EU’s total emissions, these standards are crucial.   EU Industrial Carbon Management Strategy 🏭     The EU pushed forward climate action with the release of its ICMS, with CATF providing guidance on how the EU can effectively advance carbon management to achieve Europe’s climate goals.    Carbon Removal Certification Framework ⏬     An EU-wide Carbon Removal Certification Framework was officially recognised by the European Parliament, including amendments that will ensure carbon removal activities are real, verifiable, and meaningfully contribute to the EU’s climate objectives.      The 2040 Climate Targets 🎯     The European Commission proposed the EU’s climate targets for 2040, reaffirming climate ambition, but lacking a technology-inclusive and politically viable action plan to ensure the ambitions are attainable.    National Energy and Climate Plans 📝     NECPs are an essential tool to bridge the EU’s planning gap. Deemed lacking in the credibility and substance required to set Europe on the path to decarbonisation by the European Commission , CATF provided recommendations to help Member States improve their NECPs during revisions. What are the next steps for the EU in the net-zero transition? CATF’s new report lays out key policy recommendations for transforming the EU economy for climate neutrality, focusing on the options-based approach required, and the policies needed to support the transition: https://lnkd.in/eBPyWwiu

The 2024 EY Global Climate Action Barometer reveals that while climate-related disclosures have improved, urgent action is still required. Although companies recognize the physical risks of climate change, few have plans to mitigate them. Businesses must take decisive steps to accelerate decarbonization and the energy transition to ensure a sustainable future. Discover more in EY's latest study #Sustainability #ClimateAction #EY https://lnkd.in/dH4A_dkX

Sharing the article I wrote last month on the key takeaways from the #BonnClimateTalks2024 and what to expect at #COP29. Now, with COP29 in full swing, it's time to see if the discussions and decisions are living up to the expectations set for addressing the #ClimateCrisis. Will we make meaningful progress on crucial issues like #ClimateFinance and emissions reductions?

Today saw the latest edition of the Climate Action 100+ benchmark show that while some target companies are making progress on cutting emissions, progress on policy engagement and capex alignment is still slow. Initiative chair Michael Cohen said that “this year’s report offers some encouragement that the urgency of our engagements is breaking through. But make no mistake: More must be done and there’s no time to waste.” Meanwhile, Gina Gambetta and I can reveal that the initiative has significantly expanded its reach into emerging markets over the past year, including doubling its LatAm membership. The addition of 90 new members over the past year has also seen the UK become the country with the most signatories amid US departures. https://lnkd.in/eayqy835 https://lnkd.in/eXB4j7MX

Last week, Science Based Targets initiative published its two reports on beyond value chain mitigation (BVCM). The much-anticipated guidelines set the frame on how companies can accelerate emission reductions beyond their own value chains in a credible way. Lately, there has been a paradigm shift from carbon offsetting and carbon neutrality claims towards emission reductions and contributions to global net zero. I think this is the right way to go, as science-based emission reductions are the only credible backbone for corporate climate action. The voluntary carbon market in its current form cannot guarantee true impact of carbon offsetting – or robustness of related claims (such as carbon neutrality). However, due to the urgency of the climate crisis, robust long-term targets are not enough anymore. We need immediate action. BVCM provides a means for that, and SBTi's guidance is a valuable tool for companies to take responsibility for their unabated emissions on short term. Read more 👇

Ambition matters, but it must be realistic. There are many mismatch out there that need to be addressed to prevent further rollback. Of course the story is far more complicated than that, but the first gap to be fillled is deep investment in education (especially for middle aged, educated and middle income) to fight unfounded gut feeling of average person that climate change is a huge risk already and the high cost that we have to pay collectively and individually will be much higher if we delay it further. We can’t ignore that there is a general pushback by the public because of the cost of living and the additional high burden asked by the transition. If we cannot diluite the action anymore, and we can’t, we need burden sharing and must be explained honestly to build collective engagement and participation. We will have higher inflation, higher rates and higher debt for longer, but any delay will make things even worse for anyone, government, corporates and individuals. The reality sometimes hurts, but lies rarely bring better results. Hence, we need to be realistic, but go ahead…like paying taxes…the more we are collectively the less we pay individually.

Despite improved disclosures, companies must take more urgent action on climate. This is the headline message of EY’s 2024 EY Global Climate Action Barometer, which found that: - Despite climate-related disclosure quality (54%) and coverage (94%) increasing, growth does not match the pace needed to avoid the looming climate crisis. - While most companies are aware of the physical risks they face related to climate change, only 19% have adopted plans to mitigate those risks.   The report is clear in its call to action: only by taking decisive and meaningful action can business accelerate decarbonization and the energy transition necessary to shape a sustainable future.   I encourage you to read the report and take steps to help your business turn ambition into action. We’re all in this together.  #Sustainability #ShapeTheFutureWithConfidence Matthew Bell | Velislava Ivanova | Gareth Jenkins