The REP Wrap: Kingspan cuts carbon by 65%, SEC publishes climate rules
Your weekly summary of corporate sustainability news.
Kingspan says it cut its Scope 1 and 2 emissions by 65% last year, compared with 2020. According to its 2023 sustainability report published this week, the insulation giant achieved the reductions by phasing out high emitting equipment, improving energy efficiency and focusing more on renewables. CEO Gene Murtagh said progress was also buoyed by the introduction of an internal carbon price of $70 per tonne.
Lighting company Helvar has published its second sustainability report, which it said “sets a new standard for both the company and industry”. Based on the requirements of the EU’s Corporate Sustainability Reporting Directive – including a double-materiality assessment to decide which information to disclose to the market – the report concluded that Helvar’s strategy and business model are “sufficiently resilient” to climate change, “and that the challenges presented with the 1.5°C scenario have been well recognised and accounted for in Helvar’s business model”.
Volvo increased the number of electric cars it sold by 70% last year, compared with 2022, according to its latest Annual and Sustainability Report. The carmaker sold 111,419 fully electric vehicles in 2023, representing 16% of total global volume. For the first time, the report also discloses the revenues Volvo Cars generated from circular initiatives, and information on the impact its materials have, and the impact of its business on biodiversity objectives.
Most automotive suppliers in Germany expect ESG to play a bigger role in determining their access to capital over the next two years, according to a survey by consultancy Oliver Wyman and the Association of the Automotive Industry. The pair asked 74 suppliers about their experiences of securing bank financing and a summary of the results was published in Germany’s Welt AM Sonntag. It noted the challenge of funding the transition to net zero technologies when borrowing costs had increased, partly because of broader macroeconomic conditions.
The US Securities and Exchange Commission has approved its long-awaited climate disclosure rule. The largest companies covered by the new regulation will be expected to report their Scope 1 and 2 greenhouse gas emissions starting next year, as well as the impacts of climate change on business activities. Smaller companies will be phased in over time, as will requirements for the reports – which will have to be filed with the SEC – to be assured. The smallest companies will not be required to calculate their emissions, and will only have to explain their vulnerability to climate change.
European Parliament and Council have reached a provisional agreement on a new law banning products made using forced labour. Under the text agreed on Tuesday, the European Commission would investigate suspected use of forced labour in companies’ supply chains and demand the withdrawal of relevant goods from the EU market and online marketplaces. The Commission will now establish a list of sectors and jurisdictions where state-imposed forced labour exists, to help it decide when to investigate. A ‘single portal’ will be created to host guidelines, updates on bans, information about high-risk areas and channels for whistleblowers. Parliament and Council must now give their final approval to the agreement before it is made official, and countries will have three years to start applying the rules.
Meanwhile, the EU Corporate Sustainability Due Diligence Directive has failed to secure the green light once again this week. European Council has been unable to sign off on the legislation, despite a provisional agreement being reached back in December. In an unusual move, the text was revised in order to please Council members – especially Germany, which is leading the last-minute opposition to the rules – and was scheduled to go to a vote on Friday. However, the vote has been delayed again because of concerns that it still won’t pass. Germany is among member states that have said the plans remain too strict.