Tag: Climate

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The Importance of ESG Framework and Integration into Business

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Two GoI officials recently underscored the significance to integrate ESG into business practices and the significance of an ESG framework.

The two officials are V Anantha Nageswaran, Chief Economic Advisor; and Inderdeep Singh Dhariwal, Joint Secretary, Corporate Affairs Ministry, Government of India. They addressed CXOs at an Indian Institute of Corporate Affairs (IICA) conference recently.

Integrating ESG into Business:

Mr Nageswaran emphasized India’s need for improved ESG practices, citing resistance from international bodies and forums to these measures.

He said that responsible business in India differs from Western interpretations, and urged companies to consider ESG integration into their business practices.

The CEA said that India should prioritize climate adaptation over emission mitigation, as it is not the primary contributor to emissions.

He alleged that developed countries are imposing standards on developing countries after reaching a certain income threshold at national and social level.

He took a dig at global leaders and organization heads for flying private jets to attend climate change or ESG conferences, stating that such behavior undermines credibility.

“In the process of earning the current top line and bottom line if businesses end up destroying the productivity and income earning capacity of today’s younger cohort then down the road it rebounds on businesses in terms of much lower aggregate demand and economic growth. It becomes a lose-lose proposition down the road,” he said.

Mr Nageswaran said that imposing costs on MSMEs may hinder their freedom of operation and global competition, and should be balanced based on national and social context.

The ESG framework:

Mr. Dhariwal said that the government wants to set guidelines for businesses regarding ESG practices, rather than imposing regulations.

According to him, the regulations might need to be sector-specific and different for mining companies and service-oriented businesses.

“We will provide a framework. The companies must contribute to evolve it. It is a trust-based relationship. We are listening to the stakeholders. The requirement has to echo from the source,” he said.

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President, PM put Climate at the Centre stage

Renjini Liza Varghese

President Draupadi Murmu’s address to the nation on 14 August and Prime Minister Narendra Modi’s speech today sent hope in the climate and sustainability universe. Both the leaders focused on climate justice as a key element in their respective Independence Day address to the nation.

Somewhere in the middle of her address, President Murmu touched upon two key things: justice for women and climate justice.

Incidentally, both are critical for a nation that aims to be a developed country while also fighting an increasing number of climate incidents.

She said, “Climate change has become a reality. It is all the more challenging for developing nations to change their economic paradigm. Yet, we have already made more progress in that direction than expected. India is proud to be at the forefront of humankind’s battle to save the planet from the worst effects of global warming. I also urge you all to make small but effective changes in your lifestyle and contribute to the cause of dealing with the challenge of climate change.”

She continued, “In our society, women have suffered from traditional prejudices. But I am glad to note that the Government has given equal importance to women’s welfare and women’s empowerment. Their participation in the labor force has increased. The most heartening development on this front has been the significant improvement in the sex ratio at birth. Nari Shakti Vandan Adhiniyam is aimed at ensuring real empowerment of women.”

The Prime Minister meanwhile spoke about the major reforms undertaken by the GOI.

In his speech, he highlighted the challenges faced by the nation in the wake of the recent natural calamities. “This year and for the past few years, due to natural calamity, our concerns have been mounting. Several people have lost their family members and property in natural calamity; nation too has suffered losses.”

Though the country has set 2070 as the net zero target, the PM indicated that the Railways will achieve zero emissions by 2030. This must be seen as a significant effort and a milestone in India’s climate action efforts. Interestingly, many Indian corporates and other entities have set 2050 as a net zero target.

The PM said, “We are moving towards a net-zero future. We have fulfilled the Paris accord target well before time. India has done what the G20 group could not do.”

However, the announcement of increasing non-renewable energy capacity to 500 GW was a dampener, given India’s progress in renewable energy. This shows that the country still prioritizes energy security. The good thing is that the country is focusing more on energy security to support the ‘Viksit Bhart 2047’ target.

Our take:

As WriteCanvas has consistently maintained, thermal energy will continue to remain the mainstay to meet the growing power demand, atleast for the next decade. We have regularly opined about the need for reforms, policies, and regulations that can accelerate climate action in India. And I hope PM’s mindset change remark also applies to climate as a segment.

 

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Biodiversity, Human Capital May Fall Under ISSB Gambit

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ISSB or The International Sustainability Standards Board is exploring standards on the risks and opportunities linked to biodiversity, ecosystems, ecosystem services, and human capital.

For now, ISSB has decided not to undertake human rights projects or integrate them into reporting but will monitor developments and consider including them in future agenda consultations.

Engaging with other frameworks:

The body will establish its own standard-setting work in key areas to establish specific disclosures for sustainability-related financial disclosures, establishing a global baseline.

It plans to build on existing initiatives, including SASB Standards, CDSB guidance, and the Task Force on Nature-related Financial Disclosures (TNFD), similar to its inaugural Standards approach.

The ISSB will also focus on implementing IFRS S1 and IFRS S2, enhancing SASB Standards, and addressing emerging needs, while also engaging with the International Accounting Standards Board.

ISSB and IASB will continue to endorse the Integrated Reporting Framework for promoting high-quality corporate reporting and providing a comprehensive investor information package, the body said in a press release.

The research projects will concentrate on investors’ common information needs to evaluate the potential impact of risks and opportunities on a company’s prospects.

Emmanuel Faber, Chair, ISSB, explains:

“Beyond climate, we are committed to building out the global baseline of sustainability-related financial disclosure to meet the needs of investors. Feedback indicated a significant and growing need among investors for improved disclosures around biodiversity, ecosystems and ecosystems services as well as human capital, as a key source of value for companies.”

“Our industry-specific SASB Standards continue to be used as a cost-effective way of providing decision-useful information to investors. We are committed to enhancing the SASB Standards further given they will also support our new research areas. We look forward to sharing our work plan for the next two years in June,” he said.

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NABARD Unveils Climate Strategy 2030

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NABARD has made a major advancement in sustainable development.

Shaji K V, Chairman, NABARD, released the company’s Climate Strategy 2030 document on Earth Day. The goal of this plan is to meet India’s growing demand for green financing.

Despite the urgent need—India alone needs about $170 billion a year to reach over $2.5 trillion in total by 2030. The current inflows of green finance are woefully inadequate. India received only a small portion of the required green financing, approximately $49 billion, as of 2019–20. Only $5 billion was set aside for adaptation and resilience, with the majority of funds designated for mitigation. This indicates that the private sector has not engaged in these areas because of difficulties with bankability and commercial viability.

To meet this need, NABARD’s Climate Strategy 2030 is organized around four main pillars:
(i) Quickening the pace of green lending across industries
(ii) Expanding One’s Market-Making Capabilities
(iii) NABARD’s Internal Green Transformation
(iv) Strategic Resource Allocation

This strategic move positions NABARD as a key actor in India’s transition to a resilient and sustainable economy while also reaffirming the organization’s commitment to environmental stewardship, the company said in a press release.

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FSI CSOs Taking Responsibility for Net-Zero Tasks

Sonal Desai

The role of CSO or chief sustainability officer in the rapidly growing financial services industry is changing. More and more CSOs are taking proactive steps to mitigate climate change in a bid to limit global warming to pre-industrial levels.

It must be noted that the IPCC has warned that to limit global warming to 1.5 degrees Celsius, emissions must peak before 2025, then decrease by 40% by 2050, and a quarter by 2030.

Commitments:

A recent Deloitte and the Institute of International Finance (IIF) survey reveals that FSI leaders are aware of time constraints and have shifted their approach to managing net zero internally. According to the survey, 45% of firms now have a chief sustainability officer (CSO), with more business functions taking responsibility for specific net-zero tasks.

The firms must be at the forefront of a whole economic transition to meet decarbonization targets, the Deloitte study notes.

It found that a majority of the world’s largest publicly traded companies have yet to announce net-zero targets. Nearly two-thirds of the companies have not fully specified how they plan to reach them. However, global financial firms are moving ahead at speed, with rapid growth in net-zero commitments, particularly through the Glasgow Financial Alliance for Net Zero (GFANZ).

Key findings:

Financial firms must transform themselves and manage risks to drive real-world change, engaging with customers and markets, and designing credible decarbonization strategies to transition economies to a low-carbon future.

A net-zero commitment is crucial for firms to meet the climate challenge, leading to increased product innovation, enterprise engagement, and faster progress on data sourcing.

The CEO delivers the net-zero strategy, which requires tight program management across multiple divisions and operating layers.

Over 70% of firms now have a CSO or equivalent, and CSOs must be agile change agents. Talent is also increasing, with over 50% hiring to deliver net-zero strategies.

Firms are shifting their focus to new value drivers and opportunities, launching new products to accelerate clients’ transitions.

Risk skillsets are in high demand, and modeling methodologies are maturing rapidly. Firms must design credible decarbonization strategies, focusing on data, communication, and the ecosystem.

The key to effective net-zero communications is transparency, accountability, and authenticity. The only way to meet the unique nature of the climate challenge is through extensive collaboration across the entire ecosystem, including peers, clients, scientists, NGOs, governments, and regulators.

The regional divide:

The survey of global financial firms reveals significant variations in their approach to implementing and executing net-zero commitments.

The study analyzes climate risk management in businesses across different regions. Most firms incorporate net zero into risk management, but regional variations were observed. North America and the rest reported basic integration, while APAC and European businesses had more integration.

Overall, regional confidence in data accuracy was low.

Businesses in APAC and Europe frequently use shadow carbon pricing, with NGOs moderately influencing net-zero commitments. Financial sector cooperation with governmental bodies and public institutions is crucial for energy transition.

European respondents prioritize societal expectations and regulatory compliance, while North American respondents highlight the market opportunity’s scale.

Asia-Pacific participants highlight physical factors escalating climate risk, prompting businesses in developing nations and emerging markets to address the concerns of significant foreign investors.

Businesses in many geographical areas exhibited a similar pattern of integration. However, North American businesses showed similar integration patterns but reported low net-zero strategy integration with overall corporate strategy, customer screening, and product innovation.

Businesses in all regions agree that their governance systems do not effectively represent their net-zero objectives, with North America reporting the least updates or revisions.

The way forward:

The sector already shows an appetite for this challenge and an undertaking to help green the global economy. A growing number of financial institutions have pledged to make their portfolios net zero by 2050 or sooner, and a few have already started measuring their financed emissions.

 

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Planetary Fever: Too Hot to Handle?

Renjini Liza Varghese

The earth is warming at a rapid pace. The year 2023 served as a blistering preview of what’s to come. Data from the Indian Meteorological Department (IMD) confirms that last year was the second-hottest in over a century (since 1901).

And the heat is not limited to the daytime. A recent study reveals a worrying trend: rising nighttime temperatures in Indian cities. The culprit? Surface urban heat islands (SUHIs). Delhi leads the pack with a 2-degree nocturnal increase, followed by Ahmedabad and Surat at 1.9 degrees, respectively.  It’s not just about rising temperatures but the impact of the volcanic heat on the lives of people and the environment.

Remember, 2023 wasn’t just toasty for India; it was the hottest year for the entire planet. Extreme weather events fueled a feverish Earth.

India alone saw nearly 3,000 reported climate deaths. And these are just the official numbers; unreported cases may paint a far starker picture. More than half of these deaths were caused by floods, landslides, and lightning, a reminder that nature’s wrath comes in many forms.

The fact draws home a heated argument: Limiting global temperature rise to 1.5 degrees Celsius seems improbable. But the world is reaching a reluctant consensus for below 2 degrees Celsius.

The massive earthquake in Japan, which triggered several more on New Year, is a wake-up call.

One may argue that Japan is earthquake-prone. But the intensity and frequency of these tremors raise alarm bells.

This grim reality leads us to a crucial crossroads: how do we build climate-ready communities? Is there a magic bullet?

Certainly NOT. But there is hope. By working together, we can invest in infrastructure that can withstand rising temperatures and extreme weather. We can educate and empower communities to cope with climate change risks. We can nurture green spaces that cool our cities and revitalize our planet.

So, while 2023 may have brought us planetary fever, let’s not succumb to the heat. Let’s rise to the challenge in 2024, and make it resilient, cooler and safer for all.

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10 Words that Shaped Climate Conversation in 2023

Renjini Liza Varghese

Climate conversations dominated the sustainability landscape in the year 2023. I want to share 10 words that shaped these dialogues. These words give a glimpse into the diverse and ever-evolving vocabulary of climate change.

Extreme Weather Events: Undoubtedly the most prominent term in 2023, it reflects the year’s increased frequency and intensity of hurricanes, heatwaves, droughts, and floods across the globe. This underscores the urgency of addressing climate change and building resilience in vulnerable communities.

Heat Dome: The term gained prominence due to its association with scorching temperatures and potentially hazardous conditions. It emphasizes the localized impact of climate change and the need for localized adaptation strategies.

Overshoot Scenario: This concept emerged as a potential future pathway, highlighting the possibility of temporarily exceeding the temperature target of 1.5°C before returning through rapid emission reductions. It emphasizes the importance of both short-term mitigation and long-term negative emissions technologies.

Phase Down: As a central theme of COP28, this term emphasizes a gradual transition away from fossil fuels and other high-emission activities. It provides a more realistic and manageable approach compared to an immediate phase-out.

The Loss and Damage Fund: COP28 also saw the establishment of a dedicated fund to address the negative impacts of climate change in vulnerable countries. This marks a significant step towards providing resources for adaptation and recovery.

Geoengineering: This controversial term saw increased debate in 2023, highlighting potential technological solutions like solar radiation reflection and large-scale carbon sequestration. It emphasizes the need for careful consideration of risks and ethical implications alongside mitigation efforts.

Degrowth: Offering a radical perspective, this concept advocates for moving beyond the current economic model of perpetual growth and towards a more sustainable approach based on resource conservation. It challenges the traditional paradigm and sparks debate about alternative economic systems.

Carbon Shadow: Serve as a sobering reminder of the long-term consequences of past and present emissions. It underscores the importance of immediate action to prevent further warming and highlights the need for both mitigation and adaptation strategies.

Planetary Boundaries: This concept identifies critical environmental thresholds like climate change and ocean acidification beyond which irreversible damage could occur. It provides a framework for understanding the interconnectedness of Earth’s systems and emphasizes the need for global action to stay within safe limits.

Ecocide: The concept gained traction as a potential crime against the environment, reflecting the growing concern about large-scale environmental destruction. It highlights the need for legal frameworks and international cooperation to protect ecosystems and safeguard our planet’s future.

These terms are now part of our daily conversations on climate change and climate action plans. In the last year, they have helped us to better comprehend the complex challenges and find potential solutions for climate action.

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2023: A Year Defined by Climate Change

Renjini Liza Varghese

The year 2023 can be defined in a single phrase: the year of climate change realization.

The veil of denial has lifted, revealing the stark reality of a warming planet and its devastating consequences. Communities, governments, and even individuals are finally waking up to the urgency of the climate crisis.

However, this realization remains just that—a realization. The necessary action, the translation of awareness into decisive steps, is still woefully lacking. We stand at the precipice of change, but instead of leaping, we seem content to tiptoe at the edge.

The blame for this inaction cannot be solely placed on the authorities. This is a collective crisis, requiring a collective solution. We, as humans, have a notoriously short memory and are quick to move on from the scars of one climate disaster to the other. We celebrate resilience when communities rebuild—mistaking it for a permanent solution instead of a temporary bandage on a gaping wound.

I think that the following 5 steps will enable us to prevent/tackle climate change.

1. Awareness: The crucial missing ingredient is widespread awareness. Apathy and ignorance remain formidable foes. We need robust efforts to educate and prepare communities for the inevitable onslaught of climate events. This requires accurate data, a scientific foundation that is still desperately lacking. Governments must prioritize data collection and analysis, building a solid platform for informed action.

2. Community Preparedness: Climate change is already displacing communities, and mass migrations are on the horizon. How do we navigate this complex challenge? Wisdom lies in learning from indigenous communities, who possess a deep understanding of living in harmony with nature. We must build upon their knowledge, promote circular economies, and create resilient communities that can withstand the blows of climate change.

3. Building and Rebuilding with Climate in Mind: Reconstruction after disasters must be done with a climate-resilient lens. Developed nations have a moral obligation to support this endeavor, providing resources and expertise. Sustainability, and not profit, must be the driving force behind rebuilding efforts.

4. Policy Alignment: Empty promises of green futures and resilient planets ring hollow when policies paint a different picture. Governments must bridge the gap between rhetoric and reality, aligning their policies with the urgency of the climate crisis. The future of our planet, and the lives of generations to come, depend on this alignment.

5. Affordable Technology: Technology is a powerful weapon in the fight against climate change. But its effectiveness hinges on affordability. Collaboration between governments, corporations, and the private sector is crucial to making climate-friendly technologies accessible to all. Additionally, data must be collected and utilized effectively to guide mitigation and implementation strategies.

The year 2023 was a year of realization, but it must be followed by a decade of action. We cannot afford to let this moment slip through our fingers. Let us turn awareness into action, collective apathy into collective responsibility, and build a future where our planet and its inhabitants can thrive, not just survive.

Let’s leave a GREEN LEGACY for our future generations!

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20 Maharashtra Villages Benefit from HDFC Bank Climate Project

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Addressing water woes improves the overall quality of life and household income. The latest example is the Climate Change Adaptation Project of HDFC Bank in Jafrabad, Maharashtra. As per a media release, the HDFC Bank project has helped over 5,400 households fight water shortage.

The project, which was launched in October 2020, covered 20 villages in Jafrabad. It was aimed at helping the local people cope with adverse climate change vulnerabilities such as drought, heat waves, and erratic and intense rainfall patterns. These climatic variations lead to land degradation, water scarcity, and low crop yield directly affecting the livelihood of residents, especially the farmers.

The impact

  •  Average increase in water level by 4.88 ft.
  • Increase in agriculture productivity of 7,380 acres of agricultural land
  • Increase in the area under irrigation by 2,232 acres through an increase in water availability and water use efficiency
  • 1,500 acres of area brought under diversified farming systems (horticulture, agroforestry, mixed cropping, etc.)
  • 4,028 acres area protected from direct soil erosion
  • 520 acres of area brought under horticulture
  • Created 1,302 million litres of water harvesting potential
  • Increase in average annual household income of 1,628 HHs by 25%

Ms. Nusrat Pathan, Head CSR, HDFC Bank, said, “Our interventions have successfully built the farmer’s response capacity to become climate and market-compatible, while also improving their farm incomes and maintaining the integrity of the ecology.” She further added that the projects also addressed many important issues like Runoff Harvesting, Groundwater recharge, Soil protection and moisture retention, Micro irrigation, and other climate-resilient agriculture practices.”

The project took a multi-dimension approach with work in area treatment, horticulture, water resource development, nala deepening, micro irrigation system, automatic weather station, and pest and nutrient management demonstrations. Cumulatively, the project has helped enhance the lives of nearly all 25,000 village dwellers, the bank said.

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SDGs

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15% SDGs on track due to climate change and extreme weather

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Halfway through meeting the 2030 Agenda for climate goals, the world is nowhere closer to meeting the objective. Climate change is causing global extreme weather events, with record temperatures causing global damage.

A new United in Science report by the World Meteorological Organization indicates that only 15% of the Sustainable Development Goals are on track due to climate change and extreme weather. According to the report, the 2030 Agenda’s half-time point indicates the planet is far from meeting its climate goals, hindering global efforts to address hunger, poverty, ill health, and improve access to clean water and energy.

The authors highlight the potential of weather, climate, and water sciences to enhance food and water security, clean energy, health, sustainable oceans, and resilient cities.

Data

Between 1970 and 2021, nearly 12,000 disasters resulting in over 2 million deaths and 4.3 trillion in economic losses occurred. Over 90% of these reported deaths and 60% of economic losses occurred in developing economies, undermining sustainable development. Rising global temperatures and extreme weather conditions are causing a 66% chance of global near-surface temperatures exceeding 1.5°C.

Fossil fuel CO2 emissions increased by 1% globally in 2022 compared to 2021 and preliminary estimates from January-June 2023 show a further 0.3% rise, the authors noted in the report. The Paris Agreement’s temperature goal requires a 30% and 45% reduction in global greenhouse gas emissions by 2030, with CO2 emissions close to net zero by 2050.

On the other hand, the report highlights the benefits of weather predictions, integrating epidemiology and climate information, and early-warning systems in boosting food production, reducing poverty, and preventing climate-sensitive diseases.

Require real-time forecasting

For example, how weather predictions help boost food production and move closer to zero hunger. Integrating epidemiology and climate information helps understand and anticipate those diseases sensitive to climate. And early-warning systems help to reduce poverty by giving people the chance to prepare and limit the impact.

UN Secretary-General António Guterres warns that the global response is inadequate, and science is crucial for solutions. He emphasizes the importance of weather, climate, and water-related sciences in achieving the Sustainable Development Goals.

WMO Secretary-General Prof. Petteri Taalas emphasizes the science community’s unity in achieving the SDGs, highlighting the potential of groundbreaking technologies like climate modelling and AI to transform and safeguard sustainable development.

“The science continues to show that we are not doing enough to lower emissions and meet the goals of the Paris Agreement – as the world prepares for the first global stocktake at COP28, we must increase our ambition and action, and we must all do the real work to transform our economies through a just transition to a sustainable future for people and planet,” said Inger Andersen, Executive Director of the UN Environment Program.

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Climate Disaster

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Urgent Action: Red Cross Battles Climate Crisis Impact

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The American Red Cross has launched an ambitious strategy in response to the growing climate crisis, which is seriously disrupting people’s lives and communities due to the frequency and intensity of extreme weather events around the world. In order to successfully respond to the rise in climate-related disasters, the organisation is quickly strengthening its disaster response capabilities across the country and modifying its services.

In comparison to a decade earlier, the American Red Cross is today dealing with over twice as many significant disasters within the United States.

The American Red Cross’s President and CEO, Gail McGovern, emphasised the group’s unique ability to provide aid to people threatened by climate-related severe weather. McGovern stated that the changing environment indicates a humanitarian crisis for the towns and people they serve.  “I can tell you firsthand that our changing climate is a humanitarian crisis for the communities and people we serve, and as fast as we are working to adapt, the needs are escalating faster. There is no time to wait.”

Climate catastrophe

The Red Cross is expected to devote at least $1 billion to programmes tackling the climate catastrophe in the following years. These programmes cover a wide range of activities, such as disaster assistance, the creation of innovative worldwide programmes centred on climate response and preparedness, as well as sustainability measures meant to lessen the organization’s environmental effect. Surprisingly, these initiatives are taking place at the same time as the Red Cross’s disaster relief activities and preparations for the impending Idalia hurricane, which is currently headed towards the Gulf Coast.

The country saw an unprecedented total of 15 disasters in the first half of 2023, each costing a billion dollars or more. These included deadly tornadoes in the South and Midwest and destructive atmospheric rivers in California. These occurrences were accompanied by an increase in high heat, which culminated in July being recorded as the hottest month in recorded history of the nation. In addition, the United States is already entering the typical hurricane and wildfire season.

The Red Cross’s president and chief executive officer, Gail McGovern, said, “Not too long ago, our responses were planned around seasonal trends – hurricane season, wildfire season, storm season. These seasons, though, have changed drastically. The Red Cross is now actively tackling calamities brought on by climate change.”

Furthermore, the frontline communities are being disproportionately affected by the climate disaster, leaving them vulnerable and exposed. The risk of poverty is increasing for low-income individuals and families, the elderly, diverse communities, and people with disabilities as a result of these ongoing catastrophes. Additionally, they struggle with heightened barriers to receiving help for continuing housing, hunger, and health-related issues. Additionally, compared to other communities, these ones frequently experience lengthier durations of displacement when forced to leave their homes due to calamities.

To ensure its ability to provide fair, compassionate, and thoughtful assistance to those affected by disasters, the Red Cross is undertaking this transformative project and making a support appeal.

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ESG

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Decoding the ESG matrix: Understanding the factors that shape it

Renjini Liza Varghese

I was delighted with the evolution of ESG in the past decade. The subject has garnered global attention and got the attention of regulators who are constantly upgrading the frameworks and introducing new compliances. On the one hand, I am happy that ESG is dominating decision-making at the board level, but on the other, I am also saddened that the enterprises are moving towards more camouflage or greenwashing. It is a double-edged sword.

I have been thinking about this issue as a result of recent news and feature stories in the newspapers on television and other platforms. Globally, the political landscape, protests, the potential to manipulate the numbers, and the practice of “greenwashing” are a few issues dominating the sustainability landscape. The impact of ESG variables is particularly noticeable in funding choices, mergers & acquisitions, and investment strategies.

The moot point is, do these principles apply to India? Since the majority of the occurrences I have noticed are global in nature, it is still too early to draw any conclusions. But trust me, we are not too far behind.

ESG due diligence 

Take, for instance, the most recent KPMG report—a study on ESG Due Diligence. According to the research, more than half (53%) of investors have given up on M&A projects because of significant issues with regard to ESG due diligence. This study surveyed 200 US ESG practitioners, including corporate and financial investors and M&A debt providers.

However, this does not present the entire scenario. According to 42% of respondents, the results of the ESG due diligence led to lower purchasing prices. Over 60% investors stated that they would be willing to pay more if a company showed advanced ESG maturity and a commitment to their values. More than a third of them said that this premium might be higher than 5%.

It is interesting to note that KPMG, in earlier research for the EMEA region, observed a rise in ESG evaluation, with four out of five dealmakers stating that ESG concerns now occupy a significant position on their M&A agendas.

ESG gaining prominence 

Another study conducted by media analytics company Cision reveals the prominence of ESG issues in traditional media and social platforms. Globally, even as ESG reportage in the media and discussion on the topic on social media increased between January 2020 and June 2023, consumers were unwilling to pay more for environmentally friendly products and were uninterested in corporate social responsibility.

The study was focused on Germany. ESG concerns saw a 36 percent upswing in visibility in the first half of 2023 in comparison to the previous three years. Ecological issues increased by 74% during this evaluation period, social issues by 8%, and corporate governance issues by 6%. (No clarity).

While, on the one hand, corporates are embracing transparency to meet increased ESG reporting standards, we also come across instances of greenwashing, and this number, too, is rising. I believe the organizations have been unable to articulate and communicate their ESG strategies and related outcomes.

As a veteran in the communications industry, here are my two bits.

  • Effective communication is the key: Have a communications strategy in place. Identify the key points and the focus areas you want to communicate. Elaborate your ESG initiatives in the form of case studies.
  • Manuela Schreckenbach, Head of Insights Consulting, DACH at Cision, also notes that efforts are being made to combat “greenwashing.” A Dutch court recently granted environmental organizations’ request to move on with legal action against KLM over alleged greenwashing in the airline’s “Fly responsibly” commercials.

Companies of all stripes are increasingly promoting their “GREEN” efforts. Some businesses have resorted to overstating, lying about, or inventing their ESG credentials rather than making genuine adjustments to their operations and goods. How many of these claims will withstand scrutiny from authorities, activist groups, or opportunistic customers remains to be seen.

As per a Reuters report, as part of a concerted effort by international regulators, the UK Advertising Standards Authority (ASA) has recently enforced action against corporate greenwashing. Airlines, banks, fashion retailers and energy giants are among over 20 companies targeted by the ASA for misleading statements and representations about their sustainability and environmental credentials.

Recalling here the UK’s Competition and Markets Authority investigation into retailers ASOS, Boohoo, and Asda’s fashion brand, George.

I leave you with a food for thought —— Sustainable practices should be a habit and not to be forced element. Do you agree?

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Hybrid cargo vessels to drive the electric ship industry

WriteCanvas News

The future of the electric ship industry lies with hybrid cargo vessels, says a report published by IDTechEx report titled Electric Boats & Ships 2024-2044.

As per the report, this segment has not been a major historic market, but new contracts for container ships have been steady. IDTechEx expects that zero-emission anchorage requirements, upcoming IMO and EU regulations, and the possibility for larger battery systems per vessel will drive battery installations.

The potential is huge. Less than a per cent of the global merchant fleet currently runs on alternative fuels (including batteries), and battery systems improve the efficiency of both engines and future technologies such as hydrogen fuel cells. Systems sizes per vessel have also been increasing and can span into the tens of mega-watt hour per vessel – another driver for growth.

Battery deliveries to ships 2019-2022 GWh. Source: IDTechEx

Battery deliveries to ships 2019-2022 GWh. Source: IDTechEx – “Electric Boats & Ships 2024-2044

Currently, over 1GWh of batteries are sailing on waters globally, reflecting 72% industry growth in 2022. Despite this, there have been several challenges that shipbuilders and maritime battery suppliers have had to navigate in recent years.

Electric ship markets have historically been underpinned by electric ferry orders, which made up 37% of the maritime battery capacity (GWh) deliveries between 2019 and 2022. Norway is a key driver behind this, with around 100 electric ferries in operation – the most in the world. However, IDTechEx expects market saturation here soon as government targets are set to be surpassed next year.

Electric and hybrid vessels are also typically new-builds, specifically designed to be efficient with electric propulsion. However, the recent climate of uncertainty and inflation arising from the pandemic and the Russia-Ukraine war has had a negative impact on new-build contracts, including on ship types targeted for electrification.

As the market develops, competition from China is heating up. China-based battery suppliers are finding success in offering low prices for type-approved marine battery systems. This is achieved with high levels of vertical integration and battery chemistries such as LFP, which is predominantly manufactured in China. Contemporary Amperex Technology (CATL), one of the world’s largest battery suppliers, is a good example. The company set up a subsidiary to develop batteries for ships in 2022 and has already contracted or delivered at least 16MWh.

In the short term, marine battery suppliers outside China may command a premium due to very high levels of experience in this safety-critical sector. However, China’s entry will help consolidate and streamline the value chain as well as drive the next phase of growth for the industry as it sails into the multi-giga-watt-hour territory.

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Leadership, political will & affordability required to address Climate

Renjini Liza Varghese

An Amazon delivery boy jumped into the customer’s pool to beat the heat. To many, this may present a comical respite. But for me, the incident highlights the severity of heatwaves in California and the reality of the impact of severe changes in climate and temperature on the human race.

The current last week is a case in point. As we inch toward the weekend, we have witnessed havoc caused by the heavy downpour in Asia including India, the hottest summer in many European countries, the heatwave in the US, etc.  No, I am not going to dive deep into the damage or to the data in this blog. But I want to draw your attention to a joint statement by the UN Climate Change Executive Secretary Simon Stiell and COP28 President-Designate Dr Sultan Al Jaber at the G20 Energy Ministerial in Goa last Friday (21 July 2023).

The crux is “align action and political will going forward towards the common goal of closing the gaps across all of the pillars of the Paris Agreement and get on track to keep 1.5⁰C within reach.”

No doubt the leadership by the G20 is Indispensable in climate action as the G20 countries are responsible for 85% of the world’s GDP, and also 80% of the world’s emissions.

This means we all know what is required to transition towards a net-zero economy. But apprehension about the benefits, growth, fear of diminishing profits/market share, and so on keeps people and enterprises away from real action.  I am of the view that the tide can be turned. What is required is a firm political will combined with corporate actions. I am not saying, there is no action, but more needs to be done as the TIME TO ACT IS NOW.

As a part of the sustainability community, I believe that sustainable development and a climate-resilient world come with great benefits for growth, poverty eradication and more. It just needs a collective will.

Discussions around climate change and climate action dominate the world today. But statements such as the one reproduced below ring alarming bells.

“While the discussions at the G20 Energy Ministerial considered energy transition and aligning current pathways with the Paris Goals, the outcome did not provide a sufficiently clear signal for transforming global energy systems, scaling up renewable and clean energy sources and responsibly phasing down fossil fuels.”

The fact is that climate change is hitting the human race hard. And the ‘climate vulnerable’ are looking at these leaderships to take decisive actions.

But I am still hopeful as the same statement also spoke about a more focused approach. “The science demands a strong mitigation outcome at COP28 that drives a significant reduction in greenhouse gas emissions and builds on the progress of previous COPs. We call on the G20 to lead the way on the basis of both science and equity, laying the path to a strong and credible outcome that provides developing countries with the basis to undertake a just transition.”

I hope at the end of COP28 we have more concrete actions committed, combined with a stronger political will from across the globe that is purpose-driven than just a thought for benefits or profits.

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A natural response to counteract man-made disasters

Renjini Liza Varghese

In recent times, humanity has found itself in an incessant battle against the wrath of natural calamities, exacerbated by the escalating impacts of climate change and global warming. Heart-wrenching scenes from various corners of the globe, including India, the United States, Japan, and China, have inundated news outlets over the past couple of weeks. As the adage goes, it often takes a severe impact to provoke genuine concern. However, this year’s natural disasters have surpassed that threshold, compelling us to reflect and take climate action before it is too late.

Sadly, it may already be too late. Had the human race paused and taken sustainable measures earlier, we might have averted the dangerous consequences and climatic volatility we face today. Experts, drawing from historical data, warn that the intensity of disasters may further escalate in the future. I share this belief wholeheartedly.

The pressing question becomes:

How can we limit the impact of these natural disasters and address the underlying issues of sustainability?

Is our collective memory so short-lived that we forget the urgency once we emerge from the aftermath of a calamity?

Do we prefer to remain ignorant or wait for administrative intervention?

What heartens me is witnessing the changing mindset among my peers. Many now openly question whether we are leaving a habitable planet for future generations. Our childhoods were characterized by cleaner surroundings, greener landscapes, and abundant water resources. Today, these natural treasures have become scarce due to climate change and unsustainable practices.

Cloud bursts, torrential rains, floods, landslides, and soaring temperatures experienced during heat waves—I dare to believe that these events are nature’s way of curbing the man-made disasters we have inflicted upon Mother Nature. They serve as a stark reminder of the urgent need for global sustainability efforts, climate action, and a commitment to combat climate change.

I rest my case here!

I am eager to participate in constructive conversations and contribute to meaningful change towards a sustainable future.

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