March 24, 2023

Microsoft Signs Deal for Direct Air Capture Carbon Removal; EU Lawmakers Announce Deal to Decarbonize Maritime Shipping; Chipotle Ties Executive Pay to Circular Economy, Diversity, Local Food Sourcing Goals

Microsoft Signs Deal for Direct Air Capture Carbon Removal

California-based climate tech company CarbonCapture announced today an agreement with Microsoft for the purchase of carbon removal credits generated through its Direct Air Capture (DAC) technology. The agreement marks the latest in a series of carbon removal deals announced by Microsoft, forming part of the company’s initiative to become carbon negative by 2030, and to remove all of its historical emissions by 2050. 

Invert Insights:

Carbon removal technologies play a critical role in mitigating the impacts of climate change. The result of  investing in and developing these technologies are a reduction in carbon emissions and new economic opportunities and industries, creating the perfect combination for profitability and impact. 

EU Lawmakers Announce Deal to Decarbonize Maritime Shipping

Lawmakers at the European Parliament and members of the EU Council announced that they have reached an agreement on “FuelEU Maritime,” a new regulation mandating emissions reductions in the maritime transport sector. The regulation, which is targeted to take effect in 2025, aims to increase the use of renewable and low-carbon fuels in waterborne transport and mandates the use of zero-emissions technologies in ports for passenger ships and containerships. 

You may recall, in December the European Union added maritime transport emissions to their emissions trading scheme (ETS), requiring shipping operators to pay for their carbon emissions. 

Invert Insights:

Maritime transport emissions represent a substantial portion of greenhouse gas emissions in the European Union, accounting for almost 4% of the total. As a result, the industry plays a crucial role in achieving climate targets by reducing emissions throughout the value chain of the transportation sector and other related industries. 

Chipotle Ties Executive Pay to Circular Economy, Diversity, Local Food Sourcing Goals

Chipotle Mexican Grill announced the 2023 ESG goals that will be linked to executive incentive compensation, including targets to use more locally-sourced produce, improve diversity and reduce waste to landfills. Performance towards achieving the goals can positively or negatively impact 2023 annual incentive bonus by up to 15%. Chipotle revealed that it surpassed the goals set for last year’s incentive program and said that they hold their executive leadership team accountable to make business decisions that cultivate a better world. 

Invert Insights:

Tying executive pay to environmental, social, and governance (ESG) performance has promoted accountability and advancement in attaining sustainability objectives by incentivizing leaders to prioritize long-term sustainable practices. However, companies should consider what they are trying to achieve to set material, durable and auditable goals, as measuring ESG performance might be challenging to quantify and measure objectively.

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