The REP Wrap: IKEA to set ‘climate return’ for investment decisions

Ikea will set a minimum CO2 reduction level per euro spent, to help its investment committee compare decarbonisation projects and make decisions. The firm’s parent company, Ingka Group, said the ‘climate return’ – which is currently under development – will help it “achieve the maximum possible emissions reduction for every euro we invest in climate action, ensuring investments are affordable for the business and have the most impact for the planet”. Its new transition plan also revealed it won’t use an internal carbon price, citing “unnecessary accounting complexity” and the risk it could be viewed as a “cost to pollute”.

Enel has been praised by shareholders network Climate Action 100+ for responding to their demands. Engagement efforts with the Italian energy firm were led by Generali Asset Management and Kairos Partners, and resulted in Enel publishing a section of its sustainability report dedicated to explaining how it would phase out its coal assets. It also strengthened its disclosures around coal. “All parties acknowledged the progress Enel has made in disclosing its Net Zero strategy in general, including a deep dive into its plan to phase out coal generation,” said CA100+.   

European Parliament and Council reached a provisional agreement on Tuesday on binding 2030 targets for food and textile waste. Under the proposed changes, Member States will need to reduce retail and household food waste by 30% before 2030. 

The first mandatory reports under the EU’s Corporate Sustainability Reporting Directive are 25% longer that last year’s voluntary ones, according to an academic-backed project. The Sustainability Reporting Navigator reviewed 32 documents and found the mean average is now 86 pages – although 30% were either shorter or the same.   

Three US airlines have asked the SEC for permission to block a shareholder vote on climate risks at their upcoming annual meetings. American Airlines, Delta Airlines and United Airlines want to omit a request for more information about their efforts to protect workers from the dangers of heatwaves. The trio told the regulator that the proposal, co-filed by the Office of the New York City comptroller, counts as ‘ordinary business’ and therefore breaches its rules. Delta also argued it had already substantially implemented the request, which would also mean it breached the SEC’s rules.  

French oil major TotalEnergies and gas specialist Air Liquide have announced a collaboration on two large-scale projects to produce renewable and low-carbon hydrogen in the Netherlands. The projects, which will involve a joint investment of more than €1bn, are expected to produce 45,000 tonnes of green hydrogen per year.