Weekly Roundup November 18
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.
Leaders of the G20 agreed to continue pursuing efforts to limit global warming to 1.5°C at a meeting in Bali this week, reaffirming their commitment to the full and effective implementation of the Paris Agreement and its temperature goal. The G20 declaration further urged delegates at CO27 to urgently scale up efforts to mitigate and adapt to climate change by accelerating efforts to phase down unabated coal power, phasing out fossil fuel subsidies, address the issue of loss and damage, and for developing nations to meet their commitments to provide $100 billion a year for climate mitigation in developing countries.
Invert Insights: The impacts of climate change have been projected to become increasingly harmful above the 1.5°C temperature limit defined in the Paris Agreement and the reaffirmation of the G20 to this goal is paramount to maintaining the momentum and urgency needed in the fight against climate change. Without serious commitment and accountability from the nations responsible for the vast majority of historical emissions, decoupling growth from greenhouse gas emissions will prove futile as the developing world looks to fossil fuels to power their growth.
The Biden-Harris Administration proposed a new rule requiring that major Federal Government contractors publicly disclose their greenhouse gas emissions and climate-related financial risk through CDP, and set science-based emissions reduction targets. The rule, aimed at strengthening the resilience of vulnerable Federal supply chains, covers approximately 85% of the Federal Government's Scope 3 emissions and forms part of the Federal Sustainability Plan which targets net-zero emissions procurement by 2050.
Invert Insights: As the world’s largest purchase of goods and services, the adoption of the Federal Supplier Climate Risks and Resilience Rule has the potential to accelerate significant climate action through the adoption of the leading third-party climate reporting system and target setting standards. As more governments and large organizations seek to tackle their Scope 3 or supply chain emissions, there will be increasing pressure on suppliers to decarbonize or risk losing contracts.
Companies not committed to their net-zero targets face divestment from Canada’s US$400 billion pension fund, one of the world’s largest, according to CEO John Graham. While the Canada Pension Plan Investment Board (CPPIB) does not believe in blanket divestment of heavy emitting companies, it will consider doing so where governance tools fail to drive change. The fund also stated that it will consider voting against all directors at companies where it witnesses oversight failures related to climate change.
Invert Insights: Having a credible climate action plan, including net zero commitments and near-term and long-term emissions reductions targets is nearing closer to becoming a prerequisite for investment or else face ineligibility for many funds.
Vale S.A. and other Brazilian companies have formed a new company, Biomas, focused on the restoration, conservation, and preservation of forests in Brazil. The company plans to restore and protect 4.0 million hectares of forests and is expected to remove 900 million tonnes of carbon from the atmosphere and provide habitat for over 4,000 species of animals and plants.
Invert Insights: Companies are increasingly looking towards project origination as a means to enable nature-positive outcomes outside their value chains while implementing their own decarbonization roadmaps. Project origination provides the opportunity for organizations to extend their reach beyond their immediate operations and provide sustainable development opportunities for local stakeholders.