Weekly ESG News: Financial Services and Insurance Industry (34/2024)
News in the spotlight: Google-backed Mission launches Green Button Explorer to enhance energy data access and support the renewable energy transition.
Google-supported Mission launched the Green Button Explorer, an interactive map improving energy data access in North America. It tracks energy data sharing via the Green Button Connect My Data standard, featuring an ISO/RTO data tracker and a utility scorecard. The tool educates policymakers on data access, supporting regulatory compliance and the renewable energy transition, marking a significant step toward better grid reliability and innovation despite slow adoption of open-data standards.
Regulations & Law
Australia Mandates Climate Risk Disclosures for Companies
Australia’s Senate has passed the Treasury Laws Amendment Bill 2024, mandating climate risk disclosures for large companies starting in 2025. This legislation requires companies to report climate resilience assessments under both 1.5°C and 2.5°C warming scenarios, aligning with global standards. Investors managing over $5 billion will also need to disclose their climate risks by 2027. The Australian Accounting Standards Board will finalize reporting standards soon, ensuring global competitiveness. ASIC plans to provide guidance and enforce compliance under the new regulations.
The South African Advertising Regulatory Board (ARB) has ruled that TotalEnergies’ sustainability claims are “misleading,” marking the first greenwashing challenge in the country. This ruling follows a complaint by environmental group Fossil Free SA, which accused the company of deceiving the public about its commitment to sustainable development. TotalEnergies defended its position, citing its renewable energy projects, but the ARB dismissed this, emphasizing that the company’s core fossil fuel activities contradict its sustainability claims. This decision reflects a growing global crackdown on greenwashing, with regulators increasingly scrutinizing companies for deceptive environmental advertising. The ruling is a significant step in holding fossil fuel companies accountable and aligns with broader efforts to ensure transparency and integrity in sustainability claims.
ESG Data & Analytics
ESG Book has partnered with Vyzrd to enhance climate risk and ESG analytics by integrating ESG Book’s extensive sustainability data with Vyzrd’s advanced analytics. This strategic collaboration aims to improve climate risk assessments and support regulatory compliance and net-zero planning. Justin Fitzpatrick, CEO of ESG Book, highlighted the partnership’s role in providing high-quality data and tools for sustainable investment decisions. Sunil Rana, Founder and CEO of Vyzrd, noted that the integration will offer financial institutions and corporates valuable insights into the financial impact of climate risks. The combined capabilities will help clients navigate regulatory requirements and develop effective ESG strategies.
Mission, supported by Google, has launched the Green Button Explorer, an interactive map designed to improve energy data access and transparency across North America. This tool highlights the current state of energy data sharing, focusing on the Green Button Connect My Data standard, which enables real-time, secure data portability. Key features include an ISO/RTO data requirement tracker and the Green Button Scorecard, which evaluates utilities’ adherence to open-data standards. The Explorer aims to educate policymakers and regulators on energy data access, supporting regulatory compliance and advancing the renewable energy transition. Despite the slow adoption of open-data standards, this tool represents a significant step toward enhancing grid reliability and fostering innovation in the energy sector.
Leadership Announcements
Uber Technologies has appointed Rebecca Tinucci, former Tesla executive, as Global Head of Sustainability to lead its ambitious EV transition. Starting September 16, Tinucci will oversee Uber’s goal to electrify its fleet by 2040, supported by an $800 million investment through 2025. This significant commitment includes partnering with top EV brands and focusing on sustainable practices, such as reducing plastic waste in deliveries. Andrew Macdonald, Uber’s head of mobility, praised Tinucci’s expertise and industry relationships as crucial for achieving zero-emission targets. Tinucci’s previous role at Tesla, where she led EV charging initiatives, will be instrumental in guiding Uber’s path to a fully electric future.
Aramex, a global logistics leader, has named Manosij Ganguli as Group Chief Sustainability Officer, reinforcing its commitment to sustainability. Ganguli, who has a strong background in global decarbonization efforts, will drive Aramex’s ambitious sustainability targets, including achieving Carbon Neutrality by 2030 and Net Zero by 2050. Under his leadership, the company plans to submit carbon reduction targets to the Science Based Targets initiative (SBTi) this year. Aramex has already made significant strides, such as reducing carbon emissions per shipment by 12% in 2023 and integrating solar energy systems in key warehouses. The company aims to electrify 98% of its fleet by 2030, with ongoing innovations like electric motorcycles in the UAE. Ganguli expressed his vision to further advance Aramex’s sustainability agenda through innovative, evidence-based strategies that enhance both environmental impact and operational efficiency.
ESG & Green Bond Issuances
China’s National Development Bank (NDB) has issued $1.7 billion in green bonds, attracting strong investor demand with a 3.08 subscription multiple. The three-year bonds, offered at a 1.63% issuance rate, will finance key sustainability projects focused on energy conservation, environmental protection, clean energy, and infrastructure greening. These initiatives are expected to reduce carbon dioxide emissions by 697,200 tonnes annually and save 308,900 tonnes of standard coal, contributing significantly to China’s carbon neutrality goals. This issuance increases NDB’s total green bond issuance to 189 billion yuan, further solidifying its role in driving China’s green finance agenda. The robust interest from both domestic and international investors reflects growing confidence in sustainable finance and underscores the increasing prioritization of environmental sustainability within China’s financial sector.
Amprion has successfully issued a €1.1 billion green bond, split into two tranches, as part of its €9 billion debt issuance program. The bond received strong investor demand, reflecting confidence in Amprion’s sustainable strategy. The first tranche of €500 million carries a 3.125% coupon with a 6-year maturity, while the second tranche of €600 million offers a 3.850% coupon with a 15-year maturity. The funds will be used exclusively for green projects aligned with UN sustainability goals, particularly in expanding and modernizing the transmission grid for renewable energy integration. Amprion’s Green Finance Framework, which adheres to the International Capital Market Association’s Green Bond Principles, has been validated by Sustainalytics. The bond received solid investment-grade ratings, with Moody’s rating it Baa1 and Fitch assigning a BBB+ rating. Managed by a consortium of major banks, this issuance reinforces Amprion’s commitment to sustainability and the green energy transition.
Net Zero Commitments
New Zealand will reduce the number of emission credits in its Emissions Trading Scheme (ETS) from 45 million to 21 million units between 2025 and 2029 to restore market confidence and align with climate goals. This move addresses an oversupply issue that has led to depreciated carbon prices and failed auctions, risking the achievement of the country’s climate targets. Despite the reduction, the government will maintain current auction and reserve price settings to ensure market stability. The changes are expected to increase carbon prices, encouraging emissions reductions while having a minimal impact on everyday New Zealanders.
India is targeting a full transition to zero-emission trucks (ZETs) by 2050, as part of its broader goal to achieve Net Zero by 2070. The “Indian Zero Emission Trucking Policy Advisory” outlines 30 policy interventions to accelerate the electrification of the nation’s trucking fleet, which is projected to reach 17 million trucks by mid-century. Ajay Kumar Sood, Principal Scientific Adviser, emphasized the need for a supportive ecosystem, requiring both technical expertise and policy support. The initiatives draw on successful global models and are crucial for reducing the environmental impact of India’s growing freight transport sector, positioning the country as a leader in sustainable transportation.