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Small and Mid-Sized Canadian Companies Unprepared for Climate Disclosure Requirements

Published: 2023-10-12

Improving the environmental sustainability of beauty and personal care products requires changes throughout the entire product lifecycle. Many organizations are hesitant to incorporate sustainability into their R&D methods due to concerns about efficacy and costs. However, UK-based R&D consultancy Sagentia Innovation believes that sustainability can be achieved without introducing new systems or incurring significant costs. They emphasize the importance of aligning sustainability with overall organizational strategy and long-term planning. Consumers are increasingly demanding transparency and sustainability in products, and brands that proactively embrace sustainability can gain a competitive advantage. The report also highlights the need to substantiate environmental claims and comply with evolving regulations.

Goldman Sachs' John Goldstein believes that companies involved in the circular economy, particularly waste management and recycling, have the potential to withstand the headwinds caused by inflation. As traditional green stocks struggle with rising input prices, investors are turning to companies that enable more efficient resource use. This shift towards the circular economy is seen as the “second phase” of the energy transition, with asset managers incorporating circular economy principles into their strategies. Regulations and growing interest from investors are driving the growth of circular economy-focused funds, which now oversee more than $6 billion in total.

A wave of anti-greenwashing litigation is targeting major players in the aviation industry for making false claims about being sustainable or low-carbon. The aviation industry is a significant contributor to global warming, and its impact is growing rapidly. The rise in greenwashing lawsuits is due to the ease of attacking advertising compared to other activities. These cases are supported by the falsehoods in the sustainability strategies of airlines. Several legal complaints have already been successful in ordering airlines to pull misleading ad campaigns. This litigation has the potential to hold companies accountable and force the aviation sector to address its environmental impact.

Most small and mid-sized publicly traded companies in Canada are unprepared for potential new requirements that would force them to disclose their climate impacts, according to the CEO of TMX Group, which operates the Toronto Stock Exchange. The proposed rules would require companies to disclose information related to climate change and their environmental impact. However, many small-cap companies lack the capacity, capability, and resources to meet these standards. The Canadian Securities Administrators is working on a domestic version of the international standard for climate disclosure, while the US Securities and Exchange Commission is also expected to introduce new climate disclosure rules.

The cost of climate change is increasing for companies due to extreme weather and economic losses. Corteva, an agriculture company, believes that rising temperatures pose a significant threat to the industry. However, Corteva is taking steps to mitigate its own emissions and develop sustainable solutions. Despite this, the company is working with other American companies and lobbyists to limit upcoming regulations from the SEC that would require businesses to disclose their emissions and climate change risks. The SEC’s rules could have a global impact and pressure companies to reduce their climate pollution. The EU, UK, Hong Kong, and California have already implemented their own climate disclosure rules. The SEC’s rules would provide standardized information for investors and help prevent greenwashing. The inclusion of Scope 3 emissions, which are indirect emissions from a company’s supply chain, is a contentious issue. Critics argue that accurately measuring and reporting these emissions is challenging and could burden small businesses. However, disclosing Scope 3 emissions is seen as crucial for credible climate-related risk reporting. The SEC is considering the impact of California’s new disclosure laws, which require reporting of all greenhouse gas emissions, including Scope 3 emissions, for companies operating in the state.

The 2023 Proptech survey found that while interest in innovative technology remains high in the property sector, many companies are hesitant to invest due to uncertain market conditions. However, experts believe that the current environment calls for a shift in mentality, with technology being seen as part of the solution to challenges such as hybrid working, higher interest rates, and inflation. The adoption of proptech has been slow in the past, but now there is an imperative to embrace change. Challenges hindering faster uptake include the lack of case studies and hard facts from proptech start-ups, the complexity of integrating technology in existing buildings, and the overwhelming number of proptech solutions available. Proptech can help breathe new life into struggling secondary office portfolios by providing insights into building sustainability, but it cannot save a fundamentally bad building. The merger of the UK PropTech Association and the British Property Federation aims to drive change and innovation in the industry. Artificial intelligence (AI) is predicted to be transformative in the property sector, helping navigate complexity and analyze large amounts of data. However, caution is needed in handling data and AI to ensure responsible and traceable usage.

The cost of climate change is increasing for companies, with extreme weather disrupting supply chains and causing economic losses. Corteva, an agriculture company, believes that rising temperatures pose a significant threat to the industry. However, Corteva is taking steps to mitigate its own emissions and develop sustainable solutions. Despite this, the company is working with other American companies and lobbyists to limit upcoming regulations from the U.S. Securities and Exchange Commission (SEC) that would require businesses to disclose their emissions and climate change risks. The SEC’s rules could have a global impact and encourage companies to reduce their climate pollution.

Giant Eagle has relaunched its private label brand, Nature’s Basket, with a focus on sustainability. The company has partnered with HowGood, an independent sustainability intelligence company, to evaluate the environmental and social impact of each product in the Nature’s Basket line. Products that achieve high sustainability ratings will be labeled as such, and approximately 70% of Nature’s Basket items have received a good or better rating. Giant Eagle is also working on reducing waste through more reusable, recyclable, and biodegradable packaging. The company aims to offer customers a product line that aligns with their preferences for sustainability.

A member of the climate activist group Just Stop Oil vandalized the Alan Gilbert Learning Commons at the University of Manchester by spray painting orange paint on the windows. The protester, identified as Ruby Hamill, spelled out “Just Stop Oil” on the building. She was arrested at the scene. The protest is part of a larger series of coordinated protests at universities across the UK. Just Stop Oil is demanding that the UK Government halt new oil and gas projects and is calling on students and staff to march in London in November. The University of Manchester has declared a climate emergency and is committed to achieving zero carbon emissions by 2038.

Renewable energy company Ormat Technologies has released its annual Sustainability Report, highlighting its environmental, social, and governance (ESG) performance in 2022. The report is structured according to the Global Reporting Initiative (GRI) and guided by the Sustainability Accounting Standards Board (SASB). Ormat’s CEO, Doron Blachar, emphasized the company’s commitment to sustainability and its role in addressing climate change. The report is available on the company’s website. Ormat Technologies is a leading geothermal company with plans to expand in the energy storage market. It currently operates power plants globally with a total generating portfolio of 1,277 MW.

The article criticizes the hypocrisy of African leaders who condemn wealthy nations for developing oil and gas projects while inviting oil and gas companies to take over Africa’s energy future. It argues that Africa should prioritize renewable energy instead of fossil fuels to address energy poverty and combat climate change. The article also highlights the lack of investment in renewable energy in Africa and the negative impact of fossil fuel extraction on the continent. It calls for African leaders to demand more financial commitments for renewable energy and to reject the influence of oil multinationals.

Mumbai-based real estate developer Sunteck Realty has achieved a 5-star rating in the Global Real Estate Sustainability Benchmark (GRESB) Assessment, with a score of 95. This places the company in the top 20% of performers in terms of sustainability and responsible business practices. Sunteck Realty’s score reflects its progress in areas such as energy and water efficiency, stakeholder engagement, and community enhancement. The company has also partnered with the International Finance Corporation to develop green housing projects in the Mumbai Metropolitan Region. Sunteck Realty’s achievement highlights its commitment to sustainability and shaping a sustainable future.

The US Securities and Exchange Commission (SEC) is expected to release its final version of the climate-related financial risk disclosure regulation in October 2023. Opponents may file lawsuits to invalidate the regulation, arguing that the SEC does not have the authority to regulate climate change. The SEC’s enforcement staff is also monitoring whether investment advisors are accurately disclosing their consideration of environmental, social, and governance (ESG) factors. California has passed legislation requiring companies to submit climate financial risk disclosures and greenhouse gas emissions reports. Colorado is considering a regulation that would require all licensed insurers to file climate risk financial disclosures. The NAIC is working on enhancing financial analysis tools to include climate-related risks. A report by the US Department of the Treasury highlights the negative impact of climate hazards on American households, including economic hardship and increased costs.

Most small and mid-sized publicly traded companies in Canada are not prepared for potential new requirements that would force them to disclose their climate impacts, according to the CEO of TMX Group. The proposed rules would require companies to disclose information related to climate change and their environmental impact. However, many small-cap companies lack the capacity, capability, and resources to meet these standards. The Canadian Securities Administrators is working on a domestic version of an international standard for climate disclosure, while the US Securities and Exchange Commission is

https://www.cosmeticsdesign-europe.com/Article/2023/10/12/Formulating-for-the-future-balancing-sustainability-efficacy-costs

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