Weekly Roundup November 1

Invert is focused on providing clients and subscribers up-to-date news on net-zero developments, carbon markets, and how many sectors are evolving to meet climate change goals and ESG requirements.

Special Announcement

ISSB Unanimously Confirms Scope 3 GHG Emissions Disclosure Requirements

The International Sustainability Standards Board (ISSB) of the IFRS Foundation has voted unanimously to require company disclosures on Scope 1, Scope 2 and Scope 3 greenhouse gas emissions under their new sustainability-related disclosure standards currently being developed. Relief provisions are also being developed alongside the standards to help companies apply the Scope 3 requirements which could include providing companies with additional time to provide these disclosures and working with jurisdictions on safe-harbour provisions with respect to information disclosures. Deliberations on the standards are aiming to be completed by the end of 2022 with final standards to be issued as early as possible in 2023.

Invert Insights: The upcoming requirement for Scope 3 disclosures from the ISSB represents a major step forward in sustainability reporting standards. Scope 3 emissions, often the largest component of an organizations emissions and the hardest to measure, will provide stakeholders with a much more comprehensive view of an organizations embedded emissions.

Apple Calls on Global Supply Chain to Decarbonize by 2030

Apple is accelerating its plans to address greenhouse gas emissions across its entire global supply chain by setting an ambitious target to become carbon neutral by 2030. The company, which has been carbon neutral for its global corporate operations since 2020, is calling upon its global suppliers to accelerate action and will require annual reporting on Scope 1 and Scope 2 emissions reductions related to Apple production going forward. The company is also planning to facilitate the construction of large-scale solar and wind projects in Europe to procure enough renewable energy to power all Apple devices on the continent and will be investing in high-quality nature based solutions to neutralize their residual emissions through their Restore Fund. 

Invert Insights: Global climate leaders are continuing to extend their climate efforts beyond their operations by engaging their supply chain partners to decarbonize and by investing in carbon removal projects to ensure they’re able to address their unavoidable, residual emissions. Apple’s commitment to “be a ripple in the pond” will undoubtedly catalyze further climate action both inside and outside their value chain. 

$37 Trillion Pressure Group Tells Big Emitters to Meet 1.5°C Goal

Financial institutions and multinational firms with $37 trillion in assets and spending power, as part of the 2022 CDP Science-Based Targets campaign, are calling upon over 1,000 of the world’s highest impact companies to set science-based targets for reducing emissions in line with the Paris agreement’s 1.5°C goal. The targeted companies, including BASF, Caterpillar, FedEx, General Electric, and Rio Tinto, are the source of 7 gigatons of Scope 1 and 2 emissions, or the equivalent to the United States and India's emissions combined. 

Invert Insights: External pressure continues to mount on the world's largest emitters and extends beyond governments, investors, and financial institutions to include multinational corporations with significant annual procurement spending. By setting science-based targets, companies can be certain that they’re climate action plans are aligned with the latest science and signal the credibility of their commitments. 

Biden 'Social Cost of Carbon' Climate Risk Measure Upheld by U.S. Appeals Court 

The updated social cost of carbon of $51 per tonne determined by the Biden administration has been upheld in a US appeals court. The metric, nearly quintuple the figure used by the Trump administration, is used by policy makers in rulemaking processes and permitting decisions to determine the economic cost of greenhouse gas emissions from burning fossil fuels. 

Invert Insights: The social cost of carbon is an integral metric for informing climate policy and assessing the economic impact climate change will have. While the US’ current social cost of carbon may still remain far below some estimates, the risk of rolling back to previous estimates is far greater given the lasting effects decisions on climate policy today will have on future generations.

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