Key highlights from August 2024 in the sustainability space.
1- Dutch banks cleared to work together on sustainability reporting
The Netherlands Authority for Consumers and Markets confirmed on the 14th of August that banks are allowed to collaborate with one another when preparing their sustainability related disclosures to make these more comparable. This conclusion comes as a response to the Dutch Banking Association (NVB) who had asked the Authority whether such collaboration would be permitted under competition rules. The Authority’s decision is significant for the future of sustainability related disclosures, as such collaboration could enhance the comparability and accessibility of the data generated by the disclosures, ultimately improving their quality and reliability. It could also signal progress in terms of sustainability-related industry collaboration, which many have approached carefully given strict competition rules.
2- Australia fines Mercer Superannuation for greenwashing
On the 2nd of August, the Australian Federal Court ruled against Mercer Superannuation (Australia) Ltd. in a case brought by the Australian Securities and Investments Commission (ASIC). The Court found that the company had made misleading statements about the nature and characteristics of some of its ESG investment options, pretending to exclude certain types of companies while including them in the more sustainable options offered on their website. A fine of US$7.4 million was issued. This case was the first of its kind brought by ASIC, joining the growing tide of greenwashing cases around the world, and demonstrating financial authorities’ growing vigilance in the face of eco-hypocrisy.
3- SBTI launches buildings sector framework
The Science Based Targets initiative (SBTi) has launched a new decarbonization framework for the buildings sector, urging companies and financial institutions to align with net-zero targets. The framework outlines four critical actions: halting fossil fuel installations by 2030, reducing in-use operational emissions, lowering embodied emissions from materials and construction, and retrofitting inefficient buildings. Given that the buildings sector accounts for over a quarter of energy-related emissions, these measures are vital to meet the 1.5°C global warming limit. The SBTi emphasizes immediate action, as the sector plays a key role in preventing climate change's catastrophic effects.
4- New study reveals oceans reaching hottest temperatures in 400 years
A new study was published this month in the scientific journal Nature, highlighting the link between mass blanching of corals in the Great Barrier Reef and record-high ocean temperatures. According to the study, the January–March Coral Sea heat extremes in 2024 were one of the warmest in 400 years, exceeding previous scientific estimates on future warming. Planet warming gasses are mostly to blame for the surge in temperatures, raising concerns about the discrepancy between existing emissions-related targets and the progress that has been made towards these.
- Content prepared with the help of Defne Fresko Tasci.