News

Ten things to know about the first ISSB Standards

Better information leads to better economic decisions. IFRS S1 requires companies to communicate the sustainability-risks and opportunities they face over the short, medium, and long term. The requirements are designed to ensure that companies provide investors information relevant to decision-making. IFRS S2 sets out specific climate-related disclosures and is designed to be used with IFRS S1. Both Standards are based on recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

Issuing these Standards is just the starting point. The ISSB is consulting on future priorities to help determine what comes next. We welcome your feedback before the consultation closes on 1 September 2023.

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Home Depot Says 85% of Lawn Equipment Sales to be Battery Powered by 2028, Saving 2 Million Tons of Emissions per Year

Home Depot announced a new goal to have more than 85% of its US and Canada sales of outdoor power equipment, including lawn mowers, leaf blowers and trimmers to be powered by rechargeable batteries, instead of gas.

According to the company, the transition would reduce more than 2 million metric tons of greenhouse gas (GHG) emissions per year, with gas-powered mowers creating as much pollution in an hour as driving 300 miles in an average car, and a gas leaf blower generating emissions similar to driving 1,100 miles.

Read the full report here.

The Government of Canada announced an investment of C$350 million to support the newly launched Initiative for Sustainable Aviation Technology (INSAT), aimed at supporting research and development into sustainable aviation technologies, and accelerating the aerospace industry’s green transformation.

According to a government statement, the new INSAT investment will aim to establish a pan-Canadian, industry-led network, focused on funding R&D projects. The projects will target four key technology areas, including hybrid and alternative propulsion, aircraft architecture and systems integration, the transition to alternative fuels, and aircraft support infrastructure and operations.

Read the full article here.

In the future, booking a trip could mean boarding an airplane that runs on sustainable aviation fuel (SAF) converted from mustard seeds, used French fry oil or other renewable materials.

SAF is a low-carbon alternative to conventional jet fuel made with petroleum that is compatible with today’s aircraft engines and airport infrastructure.

Learn about eFuels, a new class of renewable fuels that are produced using renewable energy sources like wind and solar.

Read the full article here.

This Reuters newsletter has some seriously thought-provoking developments encouraging us to take stock of where we are in the fight against global warming. The World Meteorological Organization (WMO) warns that global temperatures have a 66% chance of temporarily reaching 1.5 degrees Celsius by 2027, which means the world has failed to make sufficient progress on slashing climate-warming greenhouse gas emissions.

“There must be urgency in our action. The global climate crisis is more evident by the day, and today’s actions are crucial. Carbon must become a priority, equal to money in all future decision-making.”

Read the full report here.

Over 80% of Businesses Plan to Increase Spending on Environmental Sustainability Goals Over Next Year: Honeywell

A large majority of companies are planning to increase spending over the next 12 months on environmental sustainability initiatives across categories including energy efficiency and emissions reduction, according to a new survey released by industrial products, solutions and technologies company Honeywell, as sustainability goals continue to emerge as the top priority for executives. (Source: ESGtoday.com)

“Our data shows that companies aren’t wavering in their commitment to sustainability. Not only are leaders keeping it at the top of the priority list despite other looming challenges, but they are also increasingly taking actions.” ~ Vimal Kapur, President and Chief Operating Officer of Honeywell

Click here to access Honeywell’s 2Q 2023 Environmental Sustainability Index.

The Government of Canada announced today a new series of measures aimed at preventing plastic pollution and improving how plastics are made, used and managed, including the launch of consultations into proposed new labelling rules for products, requirements for recycled content in plastic packaging, and for reporting requirements for a planned plastics registry. (Source: ESGtoday.com)

“Plastics play an important role in the everyday lives of Canadians; however, the way plastic waste is managed in Canada is a growing concern we all share. [...] We must find a way to keep plastics out of the environment. That means requiring minimum recycled content in certain types of plastic packaging and providing Canadians with clearer labelling and better transparency, to help people better understand what they are buying and determine whether those plastics can be properly recycled in their community.”

~ Steven Guilbeault, Minister of Environment and Climate Change

Read the full article here.

Government of Canada: Development of Minimum Recycled Content Requirements for plastic items - Overview

Government of Canada: Recycled content and labelling rules for plastics: regulatory framework paper

Over 70% of Businesses View ESG as a Revenue Enabler

The argument that ESG harms profitability is “more than a myth—it’s misinformation that leads to poor business decision-making,” according to a new study released by IBM, which found that more than 70% of executives view ESG as a revenue enabler, and that consumers increasingly focus on companies’ sustainability performance when making purchasing and employment decisions. (Source: ESGtoday.com)

“ESG leaders are 43% more likely to outperform on profitability—and 52% more likely to say ESG efforts have a huge impact on profitability.”

“72% of executives say ESG needs to be a higher priority in their organization.”

Read the full report here.

Montreal, April 18, 2023 – BDC today announces the creation of its new $150-million Sustainability Venture Fund dedicated to investing in businesses developing technologies that will support Canada and the world to meet sustainability and climate targets.

The Fund is a key component of BDC’s commitment to sustainability and part of its contribution to help advance Canada’s 2050 net-zero ambition. It will invest in technologies in line with four key United Nations Sustainable Development Goals (SDGs) leveraging Canada’s strengths and areas of opportunity: sustainable communities and cities, responsible production and consumption, climate action as well as clean and affordable energy.

“Innovation is imperative to speed the transition to net-zero, as much as it can spur the growth of our economy. With the new fund, we have an immense opportunity to ensure that Canadian start-ups have access to the capital they need to compete and drive meaningful impact to Canada’s journey to reach net-zero and meet its sustainability targets.” ~ Isabelle Hudon, President and CEO of BDC

Read the full article here.

New study from Bain & Company and EcoVadis

ESG activities, regarding sustainability, diversity and employee satisfaction, correlate with stronger financial profitability and growth for private companies, revealed a joint study by Bain & Company and EcoVadis released today.

Four correlations between ESG activities and business results:

1. Companies with more women on the executive team have better financial results.
2. Renewable energy usage correlates with higher EBITDA margins in carbon-intensive industries.
3. Companies that focus on ethics, environmental and labor practices within their supply chains are more profitable.
4. ESG leaders have higher employee satisfaction; companies with the most satisfied employees grow faster and are more profitable.

Read the full article here.