The Week in Corporate Sustainability: BP axes green transport team
Your weekly summary of corporate sustainability news.
BP is axing the team responsible for its low-carbon mobility activities, saying it can no longer justify the cost of running a dedicated unit. Any outstanding activities will be assigned to other parts of the business.
Emissions under the EU’s Emissions Trading System reduced by 5% between 2023 and 2024, according to the latest figures from EU Member States. “With this development, ETS emissions are now around 50% below 2005 levels and on track to achieve the 2030 target of -62%,” said the European Commission in a statement on Friday, adding that it is further proof that the system is effective. The cuts were driven by the power sector’s continued shift to renewables and nuclear. The cement industry’s emissions dropped by around 5%, while the fertilizer sector’s rose by 7% over the period. “These changes seem to be mainly the result of changes in production volumes,” noted the Commission.
Telecoms giant BT has reduced its absolute carbon emissions by close to a third since 2017, according to its latest transition plan. The firm plans to become net zero by 2041, and said its progress so far has been driven by the electrification of its fleet and the continued decarbonisation of the energy grid.
Shareholders are focusing on transition plans again at this year’s AGM season, and are asking Meta to publish a roadmap to decarbonise its data centres. The findings were part of the latest annual review of investor proposals, compiled by non-profit As You Sow and shareholder advocacy group Proxy Impact. The report also revealed that the number of ESG filings has plunged by more than a third since last year, amid signs that the US Securities and Exchange Commission will be less supportive of shareholder requests under President Trump.
The UK government looks set to deviate from advice it’s been given about how to treat sustainability reporting guidance from SASB as part of its upcoming adoption of the ISSB standards. The Department for Business and Trade wrote in a recent consultation response that it is “considering” loosening the language its technical advisory committee suggested in relation to SASB, to say companies “may” – instead of “shall” – refer to and consider its guidance. The government is expected to launch a consultation on the adoption of ISSB later this month.
ISS ESG has started rating corporate sustainability bonds, to give investors an evaluation of specific issuances rather than issuers. The Sustainability Bond Rating will grade deals from A+ to D- based on their alignment with standards such as the Green Bond Principles.
Australia’s financial supervisor ASIC has published guidance to help companies comply with incoming climate disclosure requirements. Last September, the Treasury Laws Amendment Act was updated to introduce mandatory reporting rules based on ISSB standards.