Keeping up with ESG - April 2024

Hello reader 👋🏼

🚀 EU advances on sustainability due diligence: The European Parliament has approved the final text of the Corporate Sustainability Due Diligence Directive (CSDDD). It now awaits final approval from the Council of the European Union. If not passed, the directive could be jeopardised, as the incoming parliament might view it differently post-election. If approved, procurement, compliance, and sustainability teams must significantly enhance their due diligence practices to mitigate negative impacts on human rights and the environment. Access our exclusive CSDDD guide below.

🚀 SBTi under fire: This month, the Science Based Targets initiative (SBTi) faced internal backlash over its proposal to include environmental attribute certificates (EACs), including carbon offsets, for Scope 3 emissions reduction in its upcoming Corporate Net Zero Standard revision. This move sparked controversy on LinkedIn and in major media, with calls for resignations from SBTi leadership. While I’m usually the last person to support offsets, the community may be overreacting. SBTi has committed to due process to determine acceptable schemes and volumes, recognising that offsets, as part of broader removal strategies endorsed by the IPCC, are necessary.

🚀 BHP's bid to become a copper giant: The major mining headline this month is BHP’s proposed $39 billion acquisition of Anglo American, which has been already rejected as too low. Analysts anticipate a revised bid to increase by 10-20%. This deal would establish BHP as the largest copper miner globally during a period of market undersupply, with copper demand expected to rise due to energy transition demands. BHP's strategy marks a significant pivot from its traditional focus on iron ore and coal towards essential 'future-facing' metals that are defining the green economy.

Latest insights

💡 The international impact of CBAM: A thorough analysis by IETA reveals how 13 major non-EU producing countries, including Canada, India, China, and South Africa, are impacted by and reacting to the Carbon Border Adjustment Mechanism (CBAM). This insight is crucial for all affected producers in the metal industry. Read the full report here.

💡 Boards improve expertise in ESG: U.S. public company boards have significantly improved their skills in ESG over the past five years. The proportion of Fortune 100 board members with relevant ESG expertise has increased from 29% to 43%, enhancing their capacity to effectively oversee environmental and governance challenges. However, gaps in expertise related to climate and social issues persist. Learn more here.

💡 Five must-know CBAM updates: Don't miss our April guide featuring the top five must-know updates about the CBAM, complete with new examples and references. Also, ensure you're ready for the upcoming reporting deadline—submit your reports by today, April 30th.

Bonus 🙌🏼

I asked the community about the things a sustainability officer should never say. Here are the most loved responses:

Do you have a favourite to add?😝

Key Industry events in May

Join us at the EIT Raw Materials Summit in Brussels (14-16 May) and the 2024 OECD Forum on Responsible Mineral Supply Chains in Paris (22-23 May). I’ll be there exploring the latest industry developments. Let’s connect and exchange ideas if you’re attending!

I know firsthand how overwhelming endless ESG questionnaires can be. That's why we developed our AI-driven Sustainability Twin®️ technology. It automates responses using your company data and your unique style, streamlining data sharing across the supply chain and ensuring CBAM compliance. Shift your focus to what truly matters and let us handle the spreadsheet burden.