With the ESG landscape evolving at a rapid pace, MLT Aikins is pleased to offer a curated list of timely and relevant ESG articles to help you stay current. Learn more about our ESG services.
“Game-changer”: Judge rules in favour of young activists in U.S. climate trial
A Montana judge, in a first-of-its-kind decision, ruled in favour of a group of young plaintiffs, aged five to 22, who had accused state officials of violating their right to a healthy environment. The case alleged that Montana’s pro-fossil fuel policies prohibited the consideration of climate impacts in energy project permitting processes, resulting in increased state contributions to climate change through greenhouse gas emissions. This decision has been praised as one of the strongest rulings on climate change ever. Read more from the Guardian.
Major blow for INEOS as court strikes down €3-billion plastics project
A Belgian court has ruled that INEOS’s €3-billion plastics project in the Port of Antwerp, Belgium is not legal, and the project has been suspended. The court ruled that INEOS failed to tell authorities the full extent of the project’s predicted impact on the surrounding environment, and these omissions meant that the project should not have received approval. Read more from ClientEarth.
More than half of M&A dealmakers have cancelled deals on ESG due diligence findings
According to a survey conducted by KPMG, ESG considerations are increasingly being integrated into the dealmaking process by M&A professionals. Two hundred U.S. ESG practitioners were surveyed, and more than half reported that they have cancelled deals due to material findings during ESG due diligence. The survey also indicated that 74% of professionals are already integrating ESG considerations as part of their M&A agenda. Read more more ESG Today.
Amazon to require suppliers to report emissions, set climate goals
Amazon will be updating its Supply Chain Standards next year with a new requirement for suppliers to report their carbon emissions data to the company and to set emissions reductions goals. This requirement forms a part of Amazon’s initiatives to reach its goal to achieve net-zero carbon emissions by 2040. The report indicates that Amazon’s total carbon footprint declined by 0.4% in 2022, despite 9% revenue growth. Read more about Amazon’s supplier requirements from ESG Today.
BHP potash mine hits diversity milestone
The Jansen Project, a BHP potash operation in Saskatchewan, has become the first operationally focused workforce to achieve gender balance. The Jansen project achieved 43.8% female representation at the end of the 2023 financial year, while female representation across the mining industry in Canada at large sits at 14%. BHP will now be focusing on maintaining this gender balance and achieving 20% Indigenous representation in the Jansen workforce by 2026. Read more from Australian Mining.
Accounting firms accused of missing climate risks in company audits
ClientEarth alleges that senior managers at the world's six largest accounting firms – PwC, Deloitte, KPMG, EY, BDO and Grant Thornton – are failing to ensure that climate change is addressed in financial reports and may not be following auditing standards. The International Accounting Standards Board has said that climate-related matters are required to be incorporated into financial reporting standards. Read more from the Financial Times.
New proposed International Standard on Sustainability Assurance
The International Auditing and Assurance Standards Board has developed a global sustainability assurance standard – the International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements. The goal of this proposed standard is to serve as a comprehensive, stand-alone standard suitable for any sustainability assurance engagements. Stakeholders have until December 1, 2023, to provide feedback before the final standard is issued in 2024. Read more from The International Auditing and Assurance Standards Board.
Stock exchange regulators back global climate-reporting rules
The International Organization of Securities Commissions (IOSCO) gave its backing to the International Sustainability Standards Board (ISSB)’s climate-reporting standards framework. This marks an important milestone in efforts to reduce the various voluntary climate-reporting standards and instead provide investors and stakeholders reliable information on companies’ climate risks and opportunities. ISSB hopes to become a global baseline for reporting. Read more from The Wall Street Journal.
ISSB consults on proposed digital taxonomy to improve global accessibility and comparability of sustainability information
The International Sustainability Standards Board (ISSB) has published the Proposed IFRS Sustainability Disclosure Taxonomy for public comment over a 60-day consultation period, closing on September 26, 2023. A common digital taxonomy will improve the global accessibility and comparability of sustainability information for investors. Read more from The International Financial Reporting Standards Foundation.
Implementing and delegated acts – CSRD
The European Commission has released the final version of the first 12 European Sustainability Reporting Standards (ESRS). These standards cover general requirements and disclosures as well as ESG standards. Read more from The European Commission.
S&P drops ESG scores from debt rating after investor confusion
S&P Global Inc. will no longer publish ESG scores along with its credit ratings, largely due to investor confusion. S&P explained that this does not affect its ESG principles and criteria or research and commentary on ESG-related topics, including the influence that ESG factors can have on creditworthiness. Read more from Bloomberg.
SEC lawyers subpoena fund managers over ESG disclosures
The U.S. Securities and Exchange Commission (SEC) examinations division has been scrutinizing ESG investing, and has sent document requests, including subpoenas, to several fund managers related to this. This comes after the SEC enforcement division formed a task force to hunt for misconduct in climate and ESG investment disclosures. Read more from The Financial Times.
Alberta to pause new solar and wind power projects for six months
The Government of Alberta has announced that all applications for wind and solar projects that would produce more than one megawatt of power are to be put on hold – to review where they can be built and the impact they will have on the province’s power grid. The Government of Alberta is also considering rules to guide what happens to solar and wind projects at the end of their lives. Read more from The Globe and Mail.
Initial Assessment Report released regarding human rights complaint against Ralph Lauren Canada
The Canadian Ombudsperson for Responsible Enterprise (CORE) has released its Initial Assessment Report, which details a complaint filed against Ralph Lauren Canada LP. This complaint alleges that this company is using or benefitting from the use of Uyghur forced labour in China. Read the CORE report.
Australian petroleum lobby ad banned over “cleaner” natural gas claim
An advertisement for Australia’s fossil fuel producers lobby has been banned for misleading and unsubstantiated claims about the climate credentials of natural gas. According to Australia’s advertising watchdog, the Australian Petroleum Production and Exploration Association (APPEA) aired a television campaign which claimed that natural gas is “50 percent cleaner,” but did not specify what it was cleaner than. This advertisement was found to have breached Australia’s advertising code for environmental claims. Read more from Eco-Business.
Public sector pension plan members call for Ottawa to fire board director over role with Imperial Oil
A group of Public Sector Pension (PSP) plan members is calling on the federal cabinet to fire Miranda Hubbs, the director of Imperial Oil and the PSP Investment Board, due to her role in handling of an Imperial Oil toxic tailings spill. This spill was not disclosed to the federal government, local Indigenous communities or the public for nine months after reporting it to the Alberta Energy Regulator. The group claims that the way this was handled is incompatible with Hubb’s obligations to PSP pension members. Read more from the Toronto Star.
2023 net-zero report card for Canada’s largest banks released
Investors for Paris Compliance has released a report grading the progress of Canada’s largest banks in developing their net-zero policies. The banks are graded on financed emissions reporting, interim oil and gas and power financing emissions reduction targets and supporting net-zero strategies. Access the report here.
All hands on deck: Opportunities for investment management firms to advance reconciliation
The Reconciliation and Responsible Investment Initiative (RRII), with input from 48 Canadian investment managers and advisers, has developed a framework to describe actions that investment managers can take to advance reconciliation and Indigenous rights recognition. The guide is available here.
Half of board members report lacking skills to address climate issues
In a survey of 349 board members across 44 countries conducted by WTW and Nasdaq, nearly half of the respondents reported that they the lacked skills and expertise to address climate issues. The majority of respondents recognized the value in sustainability-focused initiatives, but less than two thirds of respondents agreed that their boards have dedicated sufficient time and resources to the governance of their ESG priorities. Read more about the survey from ESG Today.
UN climate fund suspends project in Nicaragua over human rights concerns
The UN’s flagship climate fund, the Green Climate Fund, has suspended payments to a $117-million forest projection project in Nicaragua over human rights concerns. This is the first decision of its kind since the fund’s creation in 2010. An investigation by the fund’s complaint mechanism found a series of failures that could cause or exacerbate violent conflict between Indigenous people and settlers. Read more from Climate Home News.
Norway’s $1.3-trillion oil fund commits to reporting portfolio emissions
Norges Bank Invesment Management (NBIM), the investment manager for Norway’s $1.3-trillion oil fund, has joined the Partnership for Carbon Accounting Financials (PCAF). PCAF is global partnership of financial institutions, and its goal is to develop and implement a harmonized approach to assess and disclose the greenhouse gas emissions associated with loans and investments. Read more from ESG Today.
Bill Gates’s Breakthrough Energy Ventures launches third fund
Breakthrough Energy Ventures, Bill Gates’s climate venture firm, has launched its third flagship fund. Funds I and II closed at $1 billion and $1.25 billion, respectively. These funds invest in startups that have created solutions to decarbonize five key themes: electricity, buildings, manufacturing, transport and food. Read more from New Private Markets.
Blackstone raises $7 billion for largest-ever private credit energy transition fund
Blackstone has raised $7.1 billion at the final close if its energy transition credit fund, Blackstone Green Private Credit Fund III (BGREEN III), which has been said to be the largest energy transition private credit fund ever raised. This fund is managed by Blackstone Credit’s Sustainable Resources Platform, with the purpose of investing and lending to renewable energy companies and those supporting the energy transition. Read more from ESG Today.