Welcome to the May edition of The Impact Brief, your go-to source for the latest insights at the nexus of business and sustainability. In this edition, the leaning-out effect to the ever-evolving landscape of sustainable business practices and frameworks. The overarching theme over the past month has been the continuous realization that our planet is heating up, our oceans absorbing heat more rapidly then ever imagine, and the fact that we are already on the irreversible path. So what now? Action.
As it becomes clearer - if not startlingly obvious - that immediate and decisive action on climate change is necessary if we are to make even a dent in climate change. Although many startups are devising new ways to solve our global challenges, and some companies are developing deeper commitment to expanding their efforts across their companies, many companies are choosing to quietly lean out their commitments - extending them further into the future, stepping out of some, or fully leaning out of the public eye. This trend is particularly notable in the fashion industry, with companies such as Crocs, Hermes, and Asos reducing or fully stepping out of their previous commitments. It begs the question: Are they acknowledging the immense challenges that lie ahead, or are they simply daunted by the costs associated with full commitment? Across the extractive industries, we are seeing actors playing a dangerous game of choosing profits over action, such as BP, Shell, and Exxon all pulling back on their ambitious climate commitments. Other industries from insurance to funds. This alarming trend raises concerns about the industry's willingness to prioritize environmental responsibility in the face of mounting climate challenges.
But perhaps this is a bigger trend for all of recognizing the immense size of the challenge(s) ahead of us. While we may have good intentions the realities of what it will truly take, becomes a little less convenient. And we see this not only in corporate environments but consistently in populations around the western world in particular. When action trumps our lifestyles - the climate loses out.
Articles from the Ideas for Impact team
While it may be tempting to take a ‘wait and see’ approach, more and more companies are developing their own solutions to mitigate this gap internally. Here are four such strategies.
In today's rapidly changing and uncertain world, building a resilient business is crucial for long-term success. And at the heart of resilience lies sustainability. Sustainable practices not only benefit the environment and society but also play a vital role in ensuring the viability and longevity of a business. Let's explore why sustainability is key to building a resilient business.
As the world becomes increasingly aware of the urgent need to address climate change, sustainability has become a key concern for businesses across all industries. Companies that fail to take sustainability seriously risk falling behind their competitors and losing the trust of their customers and stakeholders. In this article, we will explore five signs that your business may be falling behind on sustainability and what you can do to get back on track.
Disclosures, Frameworks, and Certifications
Disclosures, certifications, and frameworks on climate change are crucial for businesses to adapt for the future if used. They provide transparency, credibility, and effective communication of climate-related risks and strategies to stakeholders. These tools help businesses assess and manage climate risks, fostering resilience in the face of changing environmental conditions, and adapting to the needs of the market and community, promoting accountability and driving positive change.
Overall, these mechanisms play a vital role in ensuring businesses are well-equipped to address the challenges and opportunities presented by climate change. BUT they are also ever-evolving and complex. It is crucial for businesses to stay attentive to emerging trends and best practices. Failing to stay informed and up-to-date on these developments may result in being left behind, missing out on opportunities and falling short of stakeholder expectations in an increasingly climate-conscious business landscape. And worse, your own growth. Below are critical developments in disclosures and frameworks.
B Corp certification standards set to get tougher
B Lab, the verifying body for B Corps, is preparing to roll out new standards for certification and has posted strong support from across the private sector. Read here.
The first corporate science-based targets for nature are here
The Science Based Targets Network – a global coalition of 80+ environmental non-profits and mission-driven organizations – has released the first corporate science-based targets for nature. Read here.
Comparability needed in climate company disclosures
Climate-related company disclosures being applied across the world must have a common thread of comparability to give confidence that the objectives of a net-zero economy can be reached, Bank of England Governor Andrew Bailey said on Wednesday. Read here.
EPA Proposes New Carbon Pollution Standards for Fossil Fuel-Fired Power Plants
New proposed standards for coal and new natural gas fired power plants would avoid more than 600 million metric tons of CO2 pollution, while also preventing 300,000 asthma attacks and 1,300 premature deaths in 2030 alone. Read here.
Major News from Around the World of Sustainability
MSCI releases its May 2023 corporate tracker of the period progress by the world's listed companies towards net zero and curbing climate change risk. Lets just say time is running out, yet corporate progress is slow at best. Explore the tracker and download the most recent report.
Biden’s push to disclose climate risks hits wall of industry resistance
Big business is bucking Biden’s efforts to use SEC rules and the purchasing power of the U.S. government to reveal and reduce climate emissions. Read here.
Be Informed
If you need a good global warming overview with teams or organizations or even with your community - share this video by the Carbon Brief
Reading beyond strategy - We highly recommend the newly released Green European Journal collection of essays and articles, with a major theme of 'degrowth' covering topics such as biocapacity, a vision for a well-being economy, doughnut economics and much more. We promise you will find inspiring ideas, examples and discussions of the many faces of a positive postgrowth future, one in which people and nature can thrive together.
Funding Impact
Big congrats to the global investing newsletter CTVC raise to go beyond the inbox!
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