February 3, 2023
California Lawmakers Propose Law Requiring Companies to Disclose Full Value Chain Emissions, The Green Deal Industrial Plan: Putting Europe’s Net-Zero Industry in The Lead, UniCredit to End Financing for New Oil Projects
California Lawmakers Propose Law Requiring Companies to Disclose Full Value Chain Emissions
All large companies doing business in California may be required to disclose their full value chain greenhouse gas (GHG) emissions if new proposed legislation introduced in the state Senate is passed. The new bill would require companies to report annually on their emissions from all scopes, including Scope 3 emissions such as business travel, employee commuting, procurement, waste, and water usage.
Invert Insights: The SEC climate-disclosure rules are set to be released this spring, with the proposed inclusion of Scope 3 emissions receiving significant push back. If passed, this bill would likely affect the majority of large organizations operating within the United States, requiring them to report on all their greenhouse gas emissions, regardless of whether or not Scope 3 emissions are included within the SEC’s climate-disclosure rules.
The Green Deal Industrial Plan: Putting Europe’s Net-Zero Industry in The Lead
The EU Commission presented a Green Deal Industrial Plan to enhance the competitiveness of Europe’s net-zero industry and support the fast transition to climate neutrality. The plan aims to increase the EU’s manufacturing capacity for technologies and products required to meet Europe’s climate targets. It is based on four pillars: a predictable and simplified regulatory environment, speeding up access to climate finance, enhancing skills, and opening trade for resilient supply chains.
Invert Insights: Providing regulatory and financial support for companies to scale clean technologies can help ensure their rapid adoption and ensure sustainable alternatives remain competitive across international markets.
UniCredit to End Financing for New Oil Projects
Unicredit, an European commercial bank unveiled new 2030 targets for the reduction of financed emissions in a series of carbon intensive sectors, including oil & gas, power generation and automotive. The policy prevents all support for new explorations and expansions of oil reserves as well as for oil and gas activity in the Arctic region. UniCredit signed on to the Net-Zero Banking Alliance in October 2021 and stated that the new targets align with its goal to reach net zero by 2050
Invert Insights: Financial institutions are being pressured to reduce their financed emissions to reinforce their net zero commitments and boost sustainable lending. Pressuring lenders to reduce financing to carbon-intensive sectors can further incentive these industries to address their transition risks.