Signals of Change July 2024

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Here are this month’s signals of change towards...

A just transition from fossil fuels to clean solutions

Last week, people from across the climate community met for London Climate Action Week (LCAW). At the start of the week, the Coalition joined other actors including companies like Unilever, 2150, and Ingka Group / Ikea in urging world leaders to align their upcoming NDCs with the Paris Agreement and accelerate decarbonization, through a letter campaign under the banner of the newly launched Mission 2025 initiative.

Energy

At a LCAW high level event organized by the Powering Past Coal Alliance, Malaysian Deputy Prime Minister Fadillah Yusof announced plans to retire all coal-fired power plants by 2044 – a year earlier than projected - and to halve its fleet by 2035. Malaysia is one of the highest per capita coal consumers in southeast Asia.

Southern California has implemented a new law mandating the electrification of industrial heating processes to reduce emissions and improve air quality. The effort will slash emissions from more than 1 million boilers and water heaters over the next decade.

Meanwhile, new research from the IEA finds global investment in clean energy is set to be ten times higher than fossil fuel investment in 2024, driven by solar projects. However, oil and gas spending currently remains too high to meet climate goals, and coal investments continue to rise.

So it’s encouraging that a new UN survey finds up to 80% of people in major fossil fuel-producing countries, including China, India, and the U.S., want a rapid transition to clean energy. And in the EU, where leaders have recently been thrashing out the bloc’s strategic agenda, 92% of people surveyed said they wanted countries to work together to tackle climate change.

Deep Dive: Why competitiveness remains central to EU agenda as top jobs and strategic direction confirmed

In the first of our new monthly deep dives, our Deputy Director of Policy, Dominic Gogol takes a closer look at what elections across Europe and the launch of the EU’s Strategic Agenda for the 2024-2029 period mean for corporate climate action and the transition from fossil to clean, drawing on insights from our partners CLG-EU. Read more

Transport

First up, UK parcel delivery firm EVRI has announced plans to invest £19 million to expand its EV fleet by trebling its e-cargo bike capacity and nearly doubling its EV vehicles. One bike can deliver up to 110 parcels on a single charge.

Next to Japan, where Toyota has opened its Lexus-branded charging stations to all electric vehicle users. It follows in the footsteps of Tesla, which already opened its Supercharger network to other EVs.

Staying with EVs, a consortium of European companies including Saint-Gobain and KLA will invest €40 million to scale up production of solid-state batteries for electric vehicles for the U.S. market, aiming to enhance energy density and safety while reducing costs.

Meanwhile, a new study published in Nature Energy has found that the prices of electric trucks are declining more rapidly than anticipated, driven by advancements in technology and increased production efficiency.

Lastly, five years after the launch of Volvo’s electric trucks, the trucks have collectively travelled 80 million kilometers, saving 68,000 tons of CO2 tailpipe emissions and 25 million liters of diesel.

Latest from We Mean Business Coalition

• Ahead of the EU Council last week, our latest statement signed by Coalition Board members called on EU leaders to double down on emissions cuts, maintaining its holistic approach to climate, nature, society and economy.
• Coalition staff were out and about at London Climate Action Week last week – find out more about our key events here.
• We responded to the G7 final communique, with our Managing Director of Policy, Andrew Prag, expressing disappointment that world leaders missed an opportunity to lead at a pivotal time for global politics and in the face of raging climate change.
• As companies prepare for mandatory reporting against the EU’s new Corporate Sustainability Responsibility Directive (CSRD), our new report shares examples from pioneers already aligning with the standards to help others navigate the regulatory maze.
• Meanwhile, the SME Climate Hub has launched a campaign to mobilize SMEs across the Nordic countries to take decisive climate action. The Nordics webpage is available in English and Swedish, with other Nordic languages to follow.

Industry

Building materials maker Heidelberg has successfully issued a green bond as part of its Green Finance Framework. Projects set to be financed by the bond include the modernization of plants to use alternative fuels, and expansion of carbon capture technologies.

Over to Saudi Arabia, where Hoffman Green Cement has begun construction on its first production unit in the country, one of four to be constructed over the next 22 years in partnership with Saudi-based Shurfah Group. The factory unit, made with green cement, is expected to be completed by the end of 2025 and is set to support efforts to decarbonize Saudi Arabia’s construction sector.

In France, Hoffman Green and the VALOREM Group have announced the pouring of the world's first wind turbine foundation made from 0% clinker concrete – saving 33 tons of CO2. Meanwhile, energy company Vattenfall and BASF have signed a contract with Vestas to procure 15 MW offshore wind turbines in Germany, parts of which will be fabricated with low-emission steel, significantly reducing their CO2 footprint.

Staying in Europe, the EU has approved a €265 million grant for H2 Green Steel’s Boden plant, to make direct-reduced iron (DRI) from renewable hydrogen, which will be used to make near-zero-emissions steel, via an electric arc furnace.

Built environment

The Global Green Building Alliance has released a new guide aimed at facilitating multi-trillion-dollar investments in the sustainable built environment.

Global property companies and chefs have launched an initiative in the UK aimed at phasing out fossil gas usage in new kitchens by 2030.

German multinational engineering and technology firm Bosch is investing €100 million to ramp up the development and production capacity for heat pumps at its Portuguese manufacturing facility by 2026.

Staying with heat pumps, and after successfully completing the US Department of Energy (DOE)’s Residential Cold Climate Heat Pump Challenge, Trane Technologies is finalizing the design on its heat pump. It offers both heating and cooling capabilities and delivered average energy savings of 15-20% during its DOE laboratory tests.

Finance (regulation and standards)

At LCAW the International Sustainability Standards Board (ISSB) announced plans to ease sustainability reporting burdens with new standards alignment pledges with an enhanced focus on harmonising corporate disclosures on nature and the net-zero transition, including Scope 3 emissions. Also at LCAW, the International Organisation for Standardisation (ISO) revealed it is developing its first international standard on net zero, set to launch at COP30, which aims to provide clear, verifiable requirements for organizations transitioning to net zero, involving collaboration from experts in over 170 countries.

Next up, CDP has launched its new sustainability reporting platform aligned with the IFRS climate disclosure standard, aiming to streamline and enhance corporate climate reporting practices globally.

The Institutional Investors Group on Climate Change (IIGCC) have introduced new guidance aimed at assisting financial firms in setting robust net-zero targets and developing effective transition plans.

And finally, the number of companies saying they have a climate transition plan increased by 44% in 2023, according to CDP. A further 8,000 companies are looking to have plans in place by 2025. However, most companies are not disclosing against all the key indicators that help investors to track the quality of plans.

Protecting and restoring nature

Announced at LCAW, more than 200 investors have joined PRI’s Spring Initiative to start talks with 60 companies over biodiversity, focusing on those active in countries with ecosystems at risk of forest loss and land degradation.

EU ministers have approved the Nature Restoration law following months of negotiations, after a last-minute position change from Austria gave the Law the majority it needed.

The African Development Bank has approved $43 million to support Ethiopian SMES in the agricultural sector, aiming to enhance productivity, job creation and sustainability in the country's agriculture industry.

And finally, Pope Francis has commissioned an agrivoltaic plant to provide the Vatican with all its energy needs, emphasizing sustainability through the integration of agriculture and solar power.

Decarbonizing global supply chains

UK home improvements firm Kingfisher has set decarbonization goals for its vendors as part of its efforts to reduce Scope 3 emissions. The targets are tiered, with its top 100 vendors by Scope 3 emissions intensity required to create a SBTi target and roadmap by 2028.

Global fashion firm H&M Group has invested in Rondo Energy to explore the potential for heat storage technologies to help decarbonize the textile supply chain.

Staying with fashion, where major brands like H&M, Burberry and Levi Strauss are collaborating to share the costs of decarbonizing their supply chains through the Future Supplier Initiative.

Lastly, Lidl and WWF have initiated a five-year partnership to enhance supply chain sustainability across 31 countries by promoting biodiversity, responsible resource management, and improved supply chain traceability, aiming to halve the environmental impact of Lidl's food products.

Companies taking action

Over 16,000 companies are taking action through Coalition partner initiatives. See all companies who committed in the past month on the We Mean Business Coalition website. Companies setting their ambition for net zero include:

• 8,496 companies working to cut their emissions in line with science through SBTi
• 8,092 small and medium-sized enterprises working to cut emissions with the SME Climate Hub
• 502 companies who have now signed the Climate Pledge, to reach net zero by 2040

Meanwhile, companies are driving down emissions through the following demand-side initiatives:

• 130 companies are accelerating the transition to electric vehicles with EV100, and 5 companies are kickstarting the transition to zero-emission medium- and heavy-duty vehicles with EV100+
• 129 companies are committed to improving their energy efficiency through EP100
• 431 companies have committed to 100% renewable energy with RE100
• 39 companies have joined ConcreteZero to create a market for net zero concrete
• 45 companies have committed to SteelZero to create a market for net zero steel

Events

Climate Week NYC – 22 - 29 September

CBD COP16 Summit – 21 October -1 November

Verge24 – 29 - 31 October

G20 Summit – 18 –19 November

COP29 Summit – 11-24 November

Jobs

Various posts at BSR

Various posts at CDP

Various posts at Ceres

Various posts at CLG Europe (CISL)

Various posts at Climate Group

Various posts at WBCSD

Various posts at SBTi