March 3, 2023
Government of Canada to Require Suppliers to Disclose Emissions, Set GHG Reduction Targets, Global Energy-Related CO2 Emissions Edged Up to Record High in 2022 - IEA, Pandora Ties Debts Costs to Climate Circularity Goals for €500 Million Bond Program
Government of Canada to Require Suppliers to Disclose Emissions, Set GHG Reduction Targets
Large suppliers to the Government of Canada will be compelled to disclose their greenhouse gas (GHG) emissions and set targets to reduce them, starting April 1, 2023. According to Canada’s new “Standard on the Disclosure of Greenhouse Gas Emissions and the Setting of Reduction Targets,” federal procurements greater than $25 million will induce suppliers to measure and disclose their emissions and adopt a science-based target to reduce GHG emissions in line with the Paris Agreement.
Invert Insights: Governments and large organizations seeking to tackle Scope 3 emissions represent a potential acceleration of climate action since it incentivizes suppliers to decarbonize or risk losing contracts.
Global Energy-Related CO2 Emissions Edged Up to Record High in 2022 - IEA
Global energy-related emissions of carbon dioxide hit a record high last year, although more clean technology such as solar power and electric vehicles helped limit the impact of increased coal and oil use, the International Energy Agency (IEA) said. Carbon emissions from coal grew by 1.6% with many countries turning to the more polluting fuel after Russia’s invasion of Ukraine and a reduction in Russian gas supply to Europe sparked record high gas prices.
Invert Insights: Decarbonizing the energy industry is not an easy job, energy organizations should create a clear and attainable plan to reduce emissions across their value chain and diversify the energy mix to also decrease dependence on non-renewable sources.
Pandora Ties Debt Costs to Climate, Circularity Goals for €500 Million Bond Program
Jewelry designer and retailer Pandora announced the launch of a new program for issuances of senior unsecured notes, with terms on the new debt tied to the company’s climate and circular materials goals. The company said that it plans to use the program to secure €500 million in funding. The KPIs selected for the framework include reductions in Pandora’s emissions across the value chain and the use of recycled materials. Specifically, the framework specifies that the debt cost trigger would occur if the company does not meet its reduction goals.
Invert Insights: The use of sustainability-linked debt (SLBs) requires borrowers to have a robust sustainability strategy, supported by disclosures aligned with best practices standards and frameworks, and incentivize organizations to meet their sustainability targets to secure a lower interest rate and avoid greenwashing claims.