Sense and Sustainability – January 2022

As we move from a year when the link between the climate and biodiversity crises became clear into one likely to be characterised by changing geopolitical risks, we’re defining targets and setting expectations. With a study confirming that Earth is experiencing a ‘sixth mass extinction’, the World Bank is proposing targeted investor engagement on biodiversity. Plastic pollution is now considered to be as big a crisis as climate change. Countries are making progress in certain areas, with France banning plastic packaging on fruit and vegetables and Kosovo prohibiting cryptocurrency mining to save on electricity. As we ponder whether the world’s first octopus farm should go ahead, leaders from Boris Johnson to Jeff Bezos are looking to Costa Rica, the only tropical country to have successfully halted and reversed deforestation.

PUTTING MONEY WHERE MOUTHS ARE

Capital markets investment trends are adapting to the new environment, with Blackstone investing $3bn in America’s biggest private renewable energy company, Carlyle Group putting more than $100m into clean energy storage and electric vehicles charging and ITV inking a sustainability-linked £500m revolving credit facility. BlackRock’s Larry Fink is warning that climate policies have to be about profits, not being ‘woke’.

FOLLOWING CONSUMER AND INVESTOR DEMAND

Ford is nearly doubling its electric pick-up truck production, Alibaba plans to eliminate 1.5 gigatons of emissions and McKinsey is suggesting ‘green corridors’ for zero-carbon shipping. The world’s largest coal port is set to become 100% powered by renewable electricity, while John Deere has developed a driverless tractor. As KFC embraces ‘Beyond Fried Chicken’ and facilities management firm Aramark rolls out ‘cool food meals’ to help students make climate-friendly food choices, read Edison’s report on the growing demand for cultivated meat. Recycled coffee grounds are being made into sneakers, while an inventor is turning air into perfume. France is backing gender quotas in top management. Black women now hold a record share of the seats in S&P 500 company boardrooms. Read my comments in Sustainability magazine about using the power we hold to increase diversity.

STICKING TO OUR GUNS

There’s still an ESG backlash, with investor Terry Smith accusing Unilever of having a ‘ludicrous’ focus on social and green issues. However, in reality, plenty more action can be taken. Vital decisions to be made in 2022 include whether gas and nuclear projects should really be considered green investments and how the world can cope with soaring demand for lithium. As fighting COVID-19 remains a priority, should sick pay really be cut for unvaccinated staff?

THERE’S NO TIME LIKE THE PRESENT

As hopes are pinned on Hollywood satire Don’t Look Up helping to move the needle on climate change, here are our highlights from the last six months of exciting and innovative initiatives pushing sustainability up the agenda. And here are 10 things Britain can do now to save the planet.