The REP Wrap: EFRAG, Google, Unilever, Total
Your weekly summary of corporate sustainability news.
The EU’s advisory body for corporate reporting has today published two frameworks to enable sustainability reports and taxonomy disclosures to be digitally tagged. The documents, produced by EFRAG, allow disclosures made against the first set of European Sustainability Reporting Standards, and those required under the EU’s Taxonomy Regulation, to be machine-readable in XBRL format. “This taxonomy will be the basis for the European Securities and Market Authority to develop Regulatory Technical Standards for tagging the ESRS sustainability statement,” EFRAG said in a statement.
The UN is calling for governments to clamp down harder on companies that obstruct progress on climate change by spreading misinformation on the topic. In its latest study on the impact of climate change on human rights, the Secretary General said “states should seek to advance legal, policy and normative measures to hold polluters accountable, including for misinformation, and support loss and damage-related claims, including, where applicable, extraterritorial climate litigation”. The report added that there should also be a universal ban on advertising by fossil fuel companies. It will be up to national governments whether they choose to follow the guidance.
TotalEnergies has signed a $100m carbon offsetting agreement linked to forest conservation in the US. The energy company is partnering with Anew Climate and Aurora Sustainable Lands on the deal, which it says will help protect forests from heavy timber harvesting, promote sustainable management practices, and enhance carbon storage. “After prioritizing emission avoidance and reduction, the company will use these credits to voluntarily offset part of its remaining direct Scope 1 & 2 emissions,” Total said in a statement.
Google has had its plans for a new data centre in Ireland blocked because it would “compromise” the country’s ability to meet its climate targets. The tech giant wanted to build the site in Dublin, but the local council refused the application because there was “insufficient capacity in the electricity network” and noted “the lack of significant on-site renewable energy to power the data centre”.
Unilever’s staff are reportedly feeling disillusioned with the firm’s new, less ambitious approach to sustainability. Key people including the Chief Brand Officer have resigned from the consumer goods giant this year. Sources told the Financial Times that the exodus was partly down to new management, which has overhauled the firm’s sustainability strategy to make it more achievable and is making cuts to staff. The FT also reported that Unilever’s independent sustainability advisory council has been “disbanded”. Insiders say the six-strong group hasn’t been convened since the new CEO took over last year. Unilever told the newspaper it would appoint a new council shortly.
The European Commission is facing a legal challenge over its decision to allow some aviation and shipping activities to be classed as ‘transitional’ under the EU Taxonomy, if they use the most efficient fuels available – even if those fuels include natural gas. A coalition of NGOs is arguing that the Taxonomy exists “to provide a verified list of ‘green’ investments to companies, investors and policymakers” and it shouldn’t be compromised. “The aviation criteria are so weak that 100% of Ryanair, easyJet and Wizz Air’s order books, and 90% of Airbus’ upcoming deliveries, could be labelled ‘green’,” the group said in a statement, pointing to analysis by Transport & Environment. The legal challenge is seeking a review of the decision.