The REP Wrap: Study analyses sustainability reports of major firms

Your weekly summary of corporate sustainability news.

Enel, Philips, Ayala, BHP and Holcim are among the companies to have had their sustainability disclosures analysed in a new report from the World Business Council on Sustainable Development. The study explores the different ways firms have approached their reports, and methods for managing the current uncertainties associated with complying with EU and international reporting standards.  

The European Securities and Markets Authority has published its first climate transition plan, in which it commits to reducing its gross greenhouse gas emissions by 15.4% in 2027 and 31.4% in 2030, compared with 2023. It will start by introducing an annual emissions budget for staff air travel, optimising use of its buildings to reduce energy consumption, and introducing incentives to encourage the purchase of greener goods and services.    

HSBC has quit the Net Zero Banking Alliance amid pressure from US politicians. The bank insisted it remained “resolute” in its commitment to net zero and would “remain engaged with the Glasgow Financial Alliance for Net Zero to support the mobilisation of capital towards the net-zero transition”.

The UK’s Office for Budget Responsibility has told the government that reaching net zero will be cheaper than leaving climate change unaddressed. In a study published this week, it said rising temperatures could reduce productivity and therefore tax receipts.

Meanwhile, academics from the University of Cambridge warned the UK government that its plans to make AI a key part of the economy threaten its legally-binding net zero commitments. In a paper published on Thursday, they call for the mandatory AI disclosure framework to be in place by the end of the current parliament, requiring firms with large-scale AI systems or data centres to disclose their energy consumption, water use and associated emissions. 

A carbon removals platform used by the likes of Alphabet, McKinsey, Salesforce, JP Morgan and H&M, has announced a $41m carbon capture deal. Frontier will work with Arbor to remove 116,000 tons of CO₂ between 2028 and 2030. 

UK utility SSE has published details on its progress against its climate transition plan, revealing that it is more than halfway to meeting its goal of cutting absolute Scope 1 and 2 emissions 72.5% by 2030. The company has reduced its emissions by 48% since the baseline, representing 68% progress towards the goal.  

The Science Based Targets Network has published a set of learning modules to support companies in setting science-based targets for nature.