A recent study reveals that two anti-ESG laws passed in Texas in 2021 have caused a significant loss of jobs, decreased economic activity, and reduced tax revenues. Economist Jon Hockenyos emphasizes the unintended consequences of government interference in business decisions, stressing the importance of a free market. The research also shows increased borrowing costs for the state and higher fees for local governments issuing bonds due to reduced competition. Despite opposition, the legislation remains, reflecting a trend of prioritizing industry interests over environmental and social concerns.

Fashion and design brands company H&M Group, in collaboration with impact-focused venture investor Vargas, has launched Syre, a new venture focused on mass-producing textile-to-textile recycled materials. The initiative, starting with a $600 million offtake agreement for recycled polyester over seven years, aims to create a closed-loop solution for the clothing industry. Syre, led by CEO Dennis Nobelius, is building its first production plant in North Carolina and plans to expand globally, targeting over 3 million metric tons of recycled polyester production within ten years.

Singapore has officially introduced mandatory climate-related reporting requirements for listed and large non-listed companies, aligning with IFRS ISSB standards by 2025. The phased approach, recommended by the Sustainability Reporting Advisory Committee, begins with listed companies in 2025 and extends to large non-listed firms by 2027. The reporting framework includes disclosing Scope 1 and 2 emissions initially, with the government aiming to enhance sustainability capabilities and provide companies with improved access to markets, customers, and financing opportunities.

The U.S. Securities and Exchange Commission (SEC) has officially approved long-awaited climate-related disclosure rules for U.S. public companies. These rules mandate that companies disclose critical information in their annual reports and registration statements. Specifically, they must address climate risks, outline mitigation plans, assess the financial impact of severe weather events, and, in certain cases, report greenhouse gas emissions stemming from their operations. This marks a significant step toward greater transparency and accountability in corporate climate reporting.

California's Energy Commission has approved a groundbreaking $1.9 billion investment plan to accelerate the deployment of electric vehicle (EV) charging and hydrogen refueling infrastructure. As part of the larger $48 billion California Climate Commitment, with over $10 billion allocated to zero-emission vehicles (ZEVs) and infrastructure, the plan aims to add 40,000 new chargers over the next four years, contributing to a total of 250,000 chargers in the near future. This initiative marks a significant step toward California's ambitious climate and clean transportation goals.

A recent BCG article emphasizes the growing demand for green data and outlines key practices for information services providers to succeed in the sustainability sector. Recommendations include focusing on existing clientele, aligning with specific value targets, and anticipating regulatory impacts. The crowded sustainability information ecosystem is noted, with traditional providers facing challenges in establishing substantial revenue streams. The article envisions three phases in the sustainability journey, urging companies to act swiftly to contribute to customer success and accelerate the path to net zero.

The KPMG US survey reveals that almost half of large companies still use spreadsheets for ESG data management despite an increased focus on ESG reporting. The survey of 550 executives shows that 90% plan to boost ESG investments in areas like dedicated personnel, specialized software, and training. However, there's a significant gap between perceived ESG reporting capabilities and actual readiness, with 47% relying on spreadsheets. Companies express a commitment to improvement, including the use of artificial intelligence and machine learning for data analysis. This article emphasizes the need for a broader sustainability strategy and strategic investments to effectively communicate sustainability values to the business.

For the first time, the average global temperature has surpassed the critical benchmark of 1.5 degrees Celsius above pre-industrial levels over 12 months. The findings from the Copernicus Climate Change Service (C3S) indicate that the global mean temperature for February 2023 to January 2024 reached an unprecedented 15.02 degrees Celsius, exceeding the 1.5C threshold set in the 2015 Paris Agreement.

Global investment in the low-carbon energy transition hit a record $1.77 trillion in 2023, up 17%, according to BloombergNEF's Energy Transition Investment Trends 2024 report. Electrified transport, growing 36% to $634 billion, outpaced renewable energy spending at $623 billion. China led in investment with $676 billion, but the EU, US, and UK collectively exceeded China with $718 billion. The report underscores the need for an annual average of $4.8 trillion from 2024 to 2030 to achieve net-zero goals. Clean energy supply chain investment reached $135 billion in 2023, projected to rise to $259 billion by 2025. Trends in climate-tech equity raising ($84 billion) and energy transition debt issuance ($824 billion) show declining equity and rising debt, with utilities leading in debt issuance, and oil and gas companies' issuance decreasing.

A recent Harvard Business School article explored the impact of ESG issues on corporate profitability, presenting a framework tracing their evolution to pivotal factors. Using Purdue Pharma as a case study, it highlights increased understanding of ESG materiality, with companies measuring and reporting on ESG data. The framework offers insights for entities balancing financial and societal motivations, stressing the catalyst role of designating ESG issues as "financially material." The authors aim to shift perception towards proactive management of emerging ESG issues in corporate decision-making.

The European Council approved legislation to slash greenhouse gases, aiming for a 500 million-tonne CO2-equivalent emissions reduction by 2050. Heralded as the world's most ambitious, the rules target a complete phase-out of hydrofluorocarbons (HFCs) by 2050 and a 95% reduction by 2030, restricting the use of F-gases in favor of climate-friendly alternatives.

Global business leaders are increasingly optimistic about sustainability, with 52% planning to boost investments in 2024. The survey by Capgemini Research Institute involved 2,000 leaders across 15 countries, revealing a rise in confidence, with 56% anticipating future sustainability investments. This shift is driven by increasing awareness of climate disruptions' impact on businesses and government incentives. Government programs like the Inflation Reduction Act and the Green Deal Industrial Plan are influencing climate awareness and sustainable investment plans, with a great number of organizations planning to invest in clean energy technologies.

The European Parliament passed an anti-greenwashing law (593-21) to combat deceptive environmental claims. Pending EU Council approval, the law focuses on clearer product labels, restricting generic environmental claims, and promoting sustainability. Member states have a two-year integration period. The EU Commission also proposed a "Directive on Green Claims" for additional consumer protection.

A new Report by the Oxford Sustainable Law Programme finds that both investors and policymakers may not be paying sufficient attention to the risks of legal risk of fossil fuel investments. Noting that the number of cases before courts worldwide is at 2500 and rising. The Oxford group says is a relatively new field and is mostly focused on physical risk to companies, and investors and regulators who do not account for the possibility of large payouts from climate litigation

First Solar has achieved a significant breakthrough in the solar industry by finalizing Tax Credit Transfer Agreements (TCTAs) with Fiserv, marking the first major credit transfer in solar manufacturing. The agreements involve the sale of $500 million and up to $200 million of 2023 Inflation Reduction Act tax credits. Executed eight days after the proposed rulemaking for Section 45X credits, Fiserv will pay $0.96 per $1 of tax credits in H1 2024. Aligned with the IRA's goal of incentivizing domestic manufacturing, the move is expected to have a financial impact of up to $28 million for 2023, potentially reducing diluted earnings by $0.26 per share. First Solar's strategic plans include substantial investments, expansion, and achieving 14 gigawatts of fully integrated US solar manufacturing capacity by 2026.

2023 set record-breaking temperatures as the hottest year in history. This broke records as 2022 was one of the hottest years in history. This poses severe worry as we advance further in the climate crisis.

The article dives into the hurdles of implementing carbon pricing in the US, highlighting challenges such as upfront costs, political resistance, and the debate over effectiveness. Drawing from successful cases, it suggests tying policies to public concerns, fostering innovation, and emphasizing state-based approaches to avoid federal debates. Despite concerns about global competitiveness, successful US implementation could set a climate leadership example. While immediate political gains might be elusive, the strategy could leave a transformative legacy for future administrations. Overall, it explores strategies and challenges, proposing a state-based approach as the way forward.

In 2023, renewable energies power over half of Germany’s electricity consumption, a 5 percentage point increase from the previous year. This is a monumental step as months like July, May, October, and November showcased high peaks in renewable electricity generation, with record-breaking figures in solar and onshore wind energy. Lower overall electricity consumption contributed positively to the renewable energy quota, reaching 52 percent, while the total renewable energy production surged by 6 percent to 267.0 billion kWh. Leaders emphasized the crucial need for continued policy support and global scaling of renewables, particularly for green hydrogen and direct air capture systems, to meet climate targets and foster a sustainable energy future.

As the year is coming to a close, it is important to learn about “Earth Overshoot Day”. This day occurs every year and it marks the date when humanity’s demand for ecological resources and services in a given year exceeds what Earth can regenerate in that year. In 2023, this date fell on August 2nd, which means that the world exceeded its annual renewable resources four months before the year ended.

A new investing framework called the “Ecological Benefits Framework” can provide a new sense of transparency and accountability in the investing industry.