Energy transition key to prosperity, we can grow to zero and methane rising at an increasing rate
In this issue:
Energy is key to economic prosperity
In what is being referred to as a landmark report, former President of the European Central Bank and Italian Prime Minister Mario Draghi has set out five key steps to future European competitiveness. Crucially, the key is a successful green energy transition. The five steps are: i) Supporting low-income households in their energy transition; ii) Reducing the cost of energy for the final user; iii) A coordinated approach to Europe’s energy crisis; iv) Training an EU workforce to mine critical minerals and v) easing back biodiversity, pollution and PFAS regulations. We can’t agree with the final point but the emphasis being placed on energy and energy efficiency is something we should be noting and acting on.
NZ’s largest companies lauded and shamed on climate reporting
Otago University researchers have adapted the global Net Zero Tracker to analyse the climate performance of 21 of New Zealand’s largest organisation. The analysis relates specifically to their targets, plans and reporting, not necessarily actual levels of emissions. It reveals the best planners and reporters as Fonterra and Meridian, both scoring 8/10. Contact, OMV and Woolworth followed, on 7.5/10. Leading the hall of shame was Alliance with a rating of 0.5/10. Air New Zealand and Mitre 10 followed with scores of 1.5/10.
Methane emissions growing at accelerating rate
The Global Methane Budget 2024 reports methane emissions have increased 20% in the last two decades and are increasing at an accelerating rate. The report tells us agriculture, including livestock and rice paddies, is still the biggest source of methane emissions, accounting for 40% of global anthropogenic methane emissions. Fossil fuel activity contributes 34%, waste handling 19% and biomass burning 7%. All this means humans are now responsible for two thirds of all methane emissions.
92% of companies can grow while reducing emissions
That’s one of the key findings of a survey of 2,100 senior executives published by Deloitte this week. Covering 27 countries, the survey also reports 70% of companies expect climate change to impact strategies, 50% are already implementing technology solutions, 49% are improving energy efficiency and 47% are requiring suppliers to meet specific sustainability targets. The report is available free on the link below.
36% of B2B customers prepared to switch suppliers on sustainability
Meanwhile, Bain and Co report 36% of B2B customers are prepared to change suppliers immediately if sustainability expectations aren’t met and that (US) consumers are prepared to pay a 10% premium for products with minimal environmental impact. Worryingly, the report also indicates sustainability has dropped down the agenda for CEOs, with inflation, AI and geopolitics now seen as more pressing concerns.
SMEs accepting the challenge
The Climate Ambition Drive has been launched to try and incentivise 10,000 SMEs to make the SME Climate Commitment before COP29 in November. Larger organisations are being encouraged to sign up to help SME partners commit and fulfil. When we last looked, the count was at 8,399. You can find out more about signing up or being a supporter on the link below.
ICC considering declaring ecocide a crime
The possibility of ecocide becoming a recognised crime internationally is currently being explored by the International Criminal Court. The proposal has been put forward by Samoa, Vanuatu and Fiji, defining ecocide as “unlawful or wanton acts committed with knowledge that there is a substantial likelihood of severe and either widespread or long-term damage to the environment being caused by those acts”. Belgium has already passed a national law with a slightly different definition but if this proposal were accepted, the crime would be recognised globally alongside crimes such as genocide and war crimes.
Volvo back-tracks
Swedish/Chinese car manufacturer, Volvo, who was one of the first manufacturers to publish its entire production would be electric by 2030 has recently back-tracked, citing market conditions and customer demands. The scaled-back target is to have 90% to 100% of production pure or plug-in hybrid EVs by 2030 with the remaining production being mild hybrid. The announcement was accompanied by scaled-back emission reduction targets for the company, although it is still targeting carbon neutrality by 2040.
