Weekly ESG News: Financial Services and Insurance Industry (50/2024)
News in the spotlight: Microsoft revolutionizes data centers with a water-free cooling system, saving millions of liters annually and advancing its 2030 sustainability goals.
Microsoft’s innovative water-free cooling system for data centers saves up to 125 million liters of water annually per site. Piloted in Arizona and Wisconsin, the closed-loop liquid cooling technology supports Microsoft’s commitment to becoming water positive, carbon negative, and zero waste by 2030.
Products and Services
Amazon Boosts Sustainability with 99% Landfill Diversion in Data Centers
Amazon has achieved over 99% landfill diversion for decommissioned hardware from AWS data centers in 2024, as part of its circularity program. The initiative focuses on extending equipment lifespan through disassembly, repair, and reuse, helping AWS avoid purchasing 295,000 new hard drives since 2023. Amazon’s “re:Cycle Reverse Logistics” program, recently expanded to Dublin, supports sustainable resource management by recycling or selling 23.5 million components. The company is also implementing better design practices to reduce material use, enable repairs, and increase the use of recycled materials. These efforts align with Amazon’s broader goal to achieve net zero carbon emissions by 2040.
Microsoft Unveils Water-Free Cooling Design for Sustainable Data Centers
Microsoft has introduced a new data center design that eliminates water usage for cooling, aligning with its pledge to become carbon negative, water positive, and zero waste by 2030. The design, piloted at upcoming centers in Arizona and Wisconsin, uses a closed-loop liquid cooling system, saving up to 125 million liters of water annually per site. This innovation marks a significant shift as traditional data centers consume vast amounts of water daily. Additionally, Microsoft has improved water efficiency by 39% since 2021 through reclaimed water use in several locations. The new technology aims to reduce water usage effectiveness (WUE) to near zero in future facilities.
SGS Introduces Climate and Energy Transition Services Under IMPACT NOW
SGS has launched a new suite of climate services as part of its sustainability portfolio, IMPACT NOW, aimed at helping companies reduce emissions, comply with climate regulations, and transition to cleaner energy. Offerings include GHG consulting, carbon footprint verification, SBTi target setup, carbon neutrality claim verification, and guidance on EU/UK ETS and CBAM compliance. The energy transition services cover asset decarbonization, renewable energy assurance, energy audits, and EV battery testing. SGS CEO Géraldine Picaud emphasized the company’s commitment to supporting businesses in addressing critical climate challenges with proven and innovative solutions.
Holtara Launches Holtara.io to Simplify CSRD Compliance
Microsoft has introduced a new data center design that eliminates water usage for cooling, aligning with its pledge to become carbon negative, water positive, and zero waste by 2030. The design, piloted at upcoming centers in Arizona and Wisconsin, uses a closed-loop liquid cooling system, saving up to 125 million liters of water annually per site. This innovation marks a significant shift as traditional data centers consume vast amounts of water daily. Additionally, Microsoft has improved water efficiency by 39% since 2021 through reclaimed water use in several locations. The new technology aims to reduce water usage effectiveness (WUE) to near zero in future facilities.
Regulatory & Law
Hong Kong to Mandate IFRS-Aligned Sustainability Reporting by 2025
Hong Kong has unveiled its Roadmap on Sustainability Disclosure, detailing plans to implement sustainability reporting requirements for companies, aligning with the IFRS Foundation’s ISSB standards. Starting in 2025, listed companies will report on a comply-or-explain basis, with mandatory requirements for large-cap firms beginning in 2026. The government aims for full compliance by 2028 for all listed public entities and major financial institutions. The roadmap includes support measures such as developing a regulatory regime for sustainability assurance and expanding green fintech. Hong Kong’s commitment to international standards will reinforce its role as a global financial hub for sustainable finance.
California Delays Full Enforcement of New Climate Reporting Rules by One Year
The California Air Resources Board (CARB) has announced it will give companies an additional year before fully enforcing new climate reporting rules under the “Climate Corporate Data Accountability Act” (SB 253). The law, which applies to large businesses with revenues over $1 billion, requires annual reporting on emissions across all scopes, including direct (Scope 1), electricity-related (Scope 2), and value chain emissions (Scope 3). Reporting on Scope 1 and 2 emissions will begin in 2026, while Scope 3 will start in 2027. To ease the transition, CARB will not pursue enforcement in the first year if companies make good faith efforts to collect and report the required data. Experts view this grace period as an opportunity for companies to build their emissions reporting infrastructure.
Leadership Announcement
Clean Energy Ventures Expands into Europe with Dr. Charlotte Kirk's Appointment
Clean Energy Ventures (CEV) has appointed Dr. Charlotte Kirk as Investment Principal to lead its European expansion, launching a new office in London. The firm, focused on disruptive climate tech investments, aims to mitigate significant CO2 emissions through advanced energy technologies. CEV’s $305 million fund, which closed earlier this year, targets the reduction of 75 gigatons of emissions by 2050. Kirk, previously Head of Technology at Fortescue, brings expertise in industrial transformation and renewable energy investments. In her new role, she will drive investment strategy, technical due diligence, and portfolio support across Europe.
GRI Appoints Robin Hodess as CEO, Effective February 2025
The Global Reporting Initiative (GRI) has named Robin Hodess as its new CEO, starting in February 2025. Hodess, who currently serves as Chief of Strategy and Impact at The B Team, brings extensive experience in strategy, governance, and policy. Her appointment follows a global search and comes after current CEO Eelco van der Enden announced his departure at the end of 2024. Hodess expressed excitement about joining GRI at a pivotal time for sustainability reporting, aiming to foster a thriving, inclusive economy. Interim CEO Cristina Gil White will continue leading until Hodess assumes her role.
Net Zero Commitments
Switzerland to Require Companies to Disclose Net Zero Roadmaps Aligned with 2050 Climate Target
The Swiss government has announced new proposals to update its sustainability disclosure rules, requiring companies to provide net-zero roadmaps aligning with Switzerland’s 2050 climate target. Under the updated regulations, companies will need to report on climate-related factors such as greenhouse gas emissions, risks, targets, and transition plans, in line with standards like the ISSB or the EU’s ESRS. Additionally, companies, including financial institutions, will be mandated to provide plans for achieving net-zero emissions by 2050. The consultation on these proposals will remain open until March 21, 2025, with the changes expected to take effect in 2026.
CBRE Sets Ambitious Emissions Reduction Targets for Managed Properties by 2030
CBRE has unveiled new interim climate goals as part of its Climate Transition Strategy, aiming to reduce Scope 1 and 2 emissions by 50% and cut emissions per square foot from managed properties by 55% by 2030. The targets are part of the company’s broader objective to achieve net zero greenhouse gas emissions by 2040. CBRE’s emissions come primarily from managing and developing properties for clients, accounting for 97% of its carbon footprint. The targets have been validated by the Science Based Targets initiative (SBTi), and the company plans to focus on resource efficiency, renewable energy, electrification, and decarbonizing its supply chain to reach these goals.