The modern workforce is undergoing a significant transformation as younger generations step into the spotlight, bringing with them a distinct set of values and priorities that challenge conventional notions of employment. Deloitte's recent report, titled "The Shifting Workforce: Exploring the Impact of ESG and Climate Concerns on Gen Z and Millennials," highlighted that the newer generations are leaving jobs due to misaligned ESG values and ESG concerns. Here, we will highlight some of the key takeaways from the report.

This week, there was a major turning point in the United States’ commitment to sustainability and environmental stewardship. The Biden-Harris Administration's recent announcement of an unprecedented $11 billion investment plan for the creation of clean energy programs across rural America is the largest investment of this kind that the states have ever seen and is guaranteed to have residual impacts. This significant investment has the potential to accelerate the shift to renewable energy, stimulate economic growth, and combat climate change challenges.

The Dutch Association of Investors for Sustainable Development (VBDO), managing €10 trillion in assets, has called on corporations to accelerate action on plastics to reduce their environmental impact. The VBDO has called for corporations to set ambitious targets to reduce plastic use and eliminate single-use plastics to reduce their environmental impact. This call to action is expected to have significant effects on corporations across the globe in terms of sustainability and ESG.

In the the United States, flooding is the most expensive type of natural disaster and yet a new study highlighted this week by The Economist, suggests that including flood risk in the price of American homes could significantly lower their total value. The study estimates that accounting for flood risk could decrease the total value of American homes by as much as $187 billion, or 4.4%.

This week, the European Supervisory Authorities (ESAs), which includes the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA), and the European Securities and Markets Authority (ESMA), have proposed amendments to extend and simplify sustainability disclosures for financial market participants under the EU's Sustainable Finance Disclosure Regulation (SFDR). These proposed amendments come from the ESA requesting a review of the SFDR's indicators for principal adverse impact (PAI) and financial product disclosures.

The United Nations, commonly known in the world of Sustainability and ESG for their leadership and advocacy in promoting sustainability particularly through their 17 Sustainable Development Goals (UN SDGs) also offers completely free sustainability classes to all who would like to learn more! The United Nations has created what they call the United Nations System Staff College (UNSSC). The UNSSC houses over 100 courses with topics to choose from that include but are not limited to: Diversity, equity and inclusion, sustainable development goals, stakeholder engagement, climate change, human rights, women leadership, and more.

The U.S. Energy Department (DOE) has proposed new fuel economy rules that would lower the mileage ratings for electric vehicles (EVs) in an effort to comply with existing fuel economy standards. The new proposal would reduce the efficiency ratings of electric vehicles by about 10%, lowering the mileage rating for an EV from 125 miles per gallon equivalent (MPGe) to 113 MPGe. This current system of calculating the petroleum equivalent fuel economy has not been updated in over two decades.

According to a recent analysis by EY, only 5% of FTSE 100 companies have disclosed transition plans that would be deemed “credible” or detailed enough to meet the draft UK government guidance on decarbonization. With looming regulations and policies, along with the growing pressure to set standards that enable the world to achieve the goal of avoiding 1.5 C warming from the Paris Climate Agreement, organizations needs to act now.

The World Business Council for Sustainable Development (WBCSD) and Shift just recently released a primer for CFOs on advancing the “S” in ESG. With social issues becoming a higher priority on the business agenda, it is important for CFOs to begin to understand and communicate social performance as an essential part of their roles. This is immensely important as reporting and disclosure standards around ESG develop across the globe.

This week IRENA’s Director-General Fancesco La Camera shared the World Energy Transitions Outlook 2023 Preview and warned that our world needs a dramatic shift in the energy transition to avoid surpassing our 1.5 C climate target. What this translates to is a total of $35 trillion is needed by 2030 to expedite this energy transition.

Today, the European Union countries gave their final approval to adopt a new regulation that will require a 100% reduction in emission from new cars and vans. The EU policy will require all new cars sold to have zero CO2 emissions from 2035 and 55% lower CO2 emissions from 2030, versus 2021 levels. This is in line with the European Commission’s “Fit for 55” roadmap to cut GHG emissions. However, Germany won an exemption for cars running on e-fuels, leading to concerns that traditional combustion engine cars could still be sold beyond 2035.

This month, Deloitte released a new a new poll that shows that private equity investors (PEI) could be paving the way when it comes to ESG diligence procedures and considering ESG provisions in M&A. According to the poll, PEIs are leading by factors of two or three compared to their corporate peers when it comes to the use of ESG clauses in deal contracts and routine ESG due diligence.

On Sunday, national governments gave their final approvals on the latest IPCC report after approval was delayed due to battles between rich and developing countries over emissions targets and financial aid to vulnerable nations. The IPCC report was intended to be approved last Friday, but was repeatedly delayed as officials from big nations such as China, Brazil, Saudi Arabia, the United States and the European Union negotiated around specific wording of key phrases found in the report. After approvals finally happened, the report was publish Monday afternoon and made some very clear statements regarding what is possible and what the stakes are when looking at climate change.

Early this month, Reuters reported around a study that says that due to extreme weather caused by climate change, Germany could be looking at a bill of about 900 Billion Euros in total damages by mid-century. This is a direct example of how sustainability and ESG is affecting the bottom line. The study, originally from economic research companies Prognos and GWS and Germany's Institute for Ecological Economic Research comes as Berlin works on a climate strategy that is supposed to be presented by the environment ministry.

According to Canada’s new “Standard on the Disclosure of Greenhouse Gas Emissions and the Setting of Reduction Targets,” federal procurements greater than $25 million will induce suppliers to measure and disclose their and adopt a science-based target to reduce GHG emissions in line with the Paris Agreement.

In Boston Massachusetts, on the first day of her administration, Governor Maura Healey signed an executive order to create the position of Climate Chief, and in the same executive order, created an Office of Climate Innovation and Resilience within the Governor’s Office. This brand new role of Climate Chief has been filled by Melissa Hoffer. This is a huge accomplishment as Massachusetts is the first state in the United States to create such a role.

On Tuesday this week, the European Parliament formally approved a new law that will effectively ban the sale of new combustion engine cars in the European Unition as of 2035. This new law has been approved in hopes to combat climate change and accelerate the shift from petrol and diesel cars to electric.

Of the 18,600 companies which provided information to CDP, less than one in 200 companies disclosed information against 21 key indicators that CDP includes in a questionnaire which represents a credible climate transition plan. This means of 18,600 only 81 companies - a mere 0.4% - were able to disclosure against key indicators and prove that their climate transition plans are credible. While the number of organizations reporting to CDP has been rising rapidly, increasing by more than 40% in 2022, this 81 organizations is actually a decrease from the 153 companies that provided a credible climate plan the year before.

Norway’s $1.3 trillion sovereign wealth fund, the world’s largest investor, has warned company directors to take more specific climate on climate change or risk being voted out. The head of governance and compliance of Norges Bank Investment Management, Carine Smith Ihenacho, said that the fund was getting ready to vote against 80 company boards due to their failure to set or hit environmental or social targets.

"We have for a long time focused on better company disclosure... Now we are focusing more on actions. So now you need to go from numbers to action, concrete steps that companies are taking to meet the expectations," - Carine Smith Ihenacho

This week, the World Business Council for Sustainable Development (WBCSD) released their new report "Net Zero Buildings - Halving construction emissions today." This report highlights that we need to cut emissions in half in the built environment by 2030, and then outlines practical steps that could be taken to do so. Through the report and executive summary, we’ve put together our own summary of what you need to know.