A new proposed California law that could require most large U.S. companies to disclose their full value chain greenhouse gas (GHG) emissions passed the state's Assembly. The proposed legislation, having secured a solid majority vote in the state's Assembly, is now set to return to the Senate before landing on Governor Gavin Newsom's desk for final approval.
If enacted into law, this bill will require companies with annual revenues exceeding $1 billion that operate in California to report their emissions comprehensively. This includes emissions from all scopes, notably encompassing supply chains, with a deadline of 2027 for compliance. Moreover, the legislation mandates third-party verification of emissions data, ensuring accuracy and reliability.
This move aligns with ongoing efforts by the U.S. Securities and Exchange Commission (SEC) to establish climate disclosure rules for U.S. firms. California's proposed law goes beyond the SEC's draft rules by applying to all large companies and including all Scope 3 emissions. It underscores the rising significance of emissions transparency and sustainability reporting.
Updapt Views:
The bill enhances environmental accountability, provides data for informed policymaking, extends California's influence globally, fosters green industries, and reinforces the state's leadership in climate action, benefiting both the environment and the economy.
Ghana is taking steps towards a sustainable future with its newly launched Energy Transition and Investment Plan, unveiled by President Nana Addo Dankwa Akufo-Addo during a Global Africa Business Initiative event in New York. This visionary plan outlines Ghana's commitment to combat climate change while fostering economic growth.
The plan charts a credible path for Ghana to achieve net-zero energy-related carbon emissions by 2060. It envisions low-carbon solutions across key sectors such as oil and gas, industry, transport, cooking, and power. By pursuing this plan, Ghana seeks international support for its energy transition, presenting a remarkable $550 billion investment opportunity for sustainable development. Notably, this initiative has the potential to generate 400,000 jobs within Ghana's economy.
Ghana's prior Energy Transition Framework aimed for net-zero emissions by 2070, but this new plan demonstrates increased ambition, targeting net-zero by 2060.
The plan proposes sectoral changes and four key decarbonization technologies: renewables, low-carbon hydrogen, battery electric vehicles, and clean cookstoves. These innovations are expected to cover over 90% of the targeted emissions reduction by 2060.
The country can achieve net-zero emissions with this plan while showcasing that climate action and economic development can go hand in hand.
Updapt Views:
Ghana's green transition presents businesses with the prospect of market expansion, job generation, innovation prospects, international partnerships, bolstered reputation, and enduring viability. In an increasingly eco-conscious global environment, this transition empowers businesses to thrive while championing sustainability.
In a significant development, EFRAG and GRI have achieved seamless alignment between the European Sustainability Reporting Standards (ESRS) and the Global Reporting Initiative (GRI) Standards. This pivotal collaboration eradicates the burden of "double reporting" for companies, streamlining sustainability disclosures and establishing a more user-friendly reporting framework.
The ESRS, created by EFRAG and adopted by the European Commission, establishes guidelines for reporting sustainability impacts, opportunities, and risks under the upcoming Corporate Sustainable Reporting Directive (CSRD), set to apply from 2024. This directive will expand reporting obligations to over 50,000 companies, demanding more comprehensive disclosures on environmental, social, and sustainability-related matters.
GRI Standards are globally recognized for sustainability reporting, known for their consistency across industries. Key alignment areas include the adoption of a double materiality approach, covering both how sustainability issues affect companies and a company's impact on society and the environment.
Updapt Views:
The alignment between ESRS and GRI Standards reduces reporting complexity, saving time and resources. Businesses can seamlessly adapt their reporting practices, ensuring compliance with evolving sustainability regulations while efficiently communicating their commitment to stakeholders.
The Hong Kong Monetary Authority (HKMA), the central banking institution of Hong Kong, has unveiled a significant directive aimed at guiding banks towards a net-zero economy. This move underscores the HKMA's commitment to ensuring the stability and integrity of the financial system, particularly the banking sector, in the face of climate change.
Key principles outlined by the HKMA include the imperative for banks to establish clear objectives aligned with the Paris Agreement's climate goals. These objectives encompass not only the implementation of transition strategies but also robust risk management processes. Banks are urged to align their targets with the Paris Agreement's objectives, aiming to limit global temperature increases to well below 2°C, ideally 1.5°C.
Additionally, banks are encouraged to integrate climate considerations into their internal operations, from governance structures to product offerings. They are advised to engage with clients, gathering information on the unique risks and opportunities their sectors face in the transition to a net-zero economy.
Transparency is emphasized, with banks encouraged to enhance the transparency of their transition planning processes and regularly update their plans in response to evolving climate scenarios and sectoral pathways.
Updapt Views:
The HKMA's directive helps Hong Kong banks by improving climate risk management, aligning strategies with global climate goals, enhancing client engagement, fostering transparency, ensuring global relevance, and promoting long-term sustainability, thus addressing critical challenges in the face of climate change.
In a significant development for the global hydrogen industry, the UK and Germany have entered into a crucial partnership agreement to boost hydrogen's role in their energy sectors and accelerate international trade in this clean energy source.
The Joint Declaration of Intent, signed by the UK's Minister for Energy Efficiency and Green Finance, and Germany's State Secretary for Energy, solidifies their commitment to promoting low-carbon hydrogen. Both nations will emphasize the role of hydrogen in their energy mix and work together to advance renewable hydrogen technologies.
This partnership builds upon substantial investments made by both countries in hydrogen development, further aligning with their goals of achieving net zero emissions by 2050 and enhancing energy security. It also underscores their joint commitment to transitioning away from fossil fuels toward cleaner, diversified energy alternatives.
The collaboration is founded on five key pillars, including the acceleration of hydrogen projects, international leadership in hydrogen markets, research and innovation, trade promotion, and joint market analysis. These efforts aim to make hydrogen technologies more accessible, reduce energy costs, and stimulate private investments in hydrogen technology and projects.
This agreement marks a critical step towards realizing the potential of hydrogen as a sustainable energy source, benefiting not only the UK and Germany but also contributing to broader global efforts to combat climate change and ensure energy security. The partnership will play a vital role in shaping the future of the European hydrogen economy and fostering international cooperation on clean energy solutions.
Updapt Views:
The UK-Germany hydrogen partnership benefits businesses by creating a thriving hydrogen market, fostering innovation, and facilitating trade. This collaboration provides opportunities for companies to invest in and develop hydrogen technologies, access a growing customer base, and position themselves as leaders in the emerging clean energy sector, contributing to economic growth and sustainability.
