ESG International Weekly News 6/24-6/30

1.🌍JPMorganChase Signs 10-Year DAC Carbon Removal Deal with 1PointFive

JPMorganChase has signed a 10-year carbon removal credit agreement with Occidental’s DAC subsidiary, 1PointFive, purchasing 50,000 tonnes of CDR from the STRATOS DAC plant in Texas. This aligns with the bank’s strategy to reduce its operational emissions while supporting the development of high-quality, durable carbon removal markets.

Key Highlights:

• 📌 STRATOS DAC facility expected to launch in 2025 with 500,000 t/year capacity
• 📌 Builds on JPMorganChase’s prior 450,000-tonne CDR deal with CO280
• 📌 Occidental (Oxy) has heavily invested in DAC, including acquiring Carbon Engineering and Holocene
• 📌 STRATOS CO₂ will be sequestered underground under EPA-issued permits
• 📌 Agreement supports U.S. infrastructure and DAC market momentum

“This offtake agreement builds on our diverse, high-quality portfolio of carbon removal projects to address our unabated operational emissions.”

— Taylor Wright, Head of Operational Decarbonization, JPMorganChase

 

2.♻️Syre Partners with Gap, Houdini & Target to Scale Circular Polyester and Cut Fashion Emissions

Circular economy startup Syre—backed by H&M Group and Vargas—has entered into strategic partnerships with Gap, Houdini Sportswear, and Target to accelerate adoption of recycled polyester made from post-consumer textiles. This initiative aims to reduce CO₂ emissions by up to 85% versus conventional polyester and scale up circular solutions in the fashion industry.

• 🌿 Gap plans to purchase 10,000 metric tons of Syre’s recycled polyester chips annually
• 🔁 Houdini Sportswear to source 50% of its polyester from Syre over three years
• 🎯 Target aims for all owned-brand products to be circular-ready by 2040 and has started using Syre materials
• 🏗 Syre is building a blueprint plant in North Carolina (launching in 2026) and its first gigascale plant in Vietnam
• 📉 The global shortfall of circular polyester is projected to reach 10–12 million metric tons by 2030

Quotes:

“These collaborations will not only bolster commercial success but also help redefine the industry and drive the urgent shift towards true circularity.”

— Dennis Nobelius, CEO of Syre

3.🇸🇬Singapore Issues Draft Guidance to Strengthen Voluntary Carbon Market Integrity

Singapore’s Ministry of Trade and Industry, National Climate Change Secretariat, and Enterprise Singapore released a draft Voluntary Carbon Market (VCM) Guidance to help companies responsibly integrate carbon credits into their decarbonization strategies. The draft, shaped by industry feedback, addresses issues like inconsistent standards and reputational risks, offering principles for credit quality, use protocols, and disclosure.

• ✅ Carbon credits should be used only after all feasible emissions reductions are prioritized
• 🔎 Quality principles include no double counting, additionality, quantified and verified impact, permanence, and no leakage
• 📉 Encourages portfolio-level risk assessment, use of project ratings, and insurance tools
• 📢 Urges transparent disclosure of carbon credit use, including volume, credit type, project location, registry, purpose, and third-party ratings

“The lack of standardization has eroded market trust. This guidance aims to clarify the use of carbon credits and reduce reputational risks for companies.”
 

4.📘IFRS Foundation Releases Guidance to Support ISSB Climate Transition Disclosures

The IFRS Foundation has issued new guidance to assist companies applying the ISSB’s IFRS S2 climate standard in disclosing information about their climate-related transitions and any associated plans. The guidance incorporates elements from the UK’s Transition Plan Taskforce (TPT) framework, aiming to address fragmented disclosures and improve consistency for investors.

• ✅ IFRS S2 does not require a transition plan, but mandates disclosure of any material climate transition risks and plans if available
• 🌱 The guidance supports disclosure of mitigation and adaptation strategies for climate transition
• 🌍 36 jurisdictions are already using or planning to adopt ISSB standards, 17 with finalized frameworks
• 💬 ISSB Vice-Chair emphasized that the guidance aims to reduce fragmentation and inspire quality climate disclosures

“This guidance… provides inspiration for entities applying IFRS S2 when making disclosures about their climate-related transition plans.”

— Sue Lloyd, ISSB Vice-Chair

5.⚛️Governor Hochul Orders Development of Zero-Emission Nuclear Plant in Upstate New York

New York Governor Kathy Hochul has directed the New York Power Authority (NYPA) to develop an advanced, zero-emission nuclear power facility in Upstate New York with at least 1 GW capacity. The plant will support the state’s goal of achieving zero-emission electricity by 2040 and carbon neutrality by mid-century, while meeting rising power demand from AI, electrified buildings, industrial growth, and electric vehicles.

• ⚡ Nuclear energy to provide clean, reliable baseload power alongside growing renewable energy sources
• 📈 Responds to AI-driven energy consumption and statewide electrification trends
• 💰 Follows New York’s record-setting 6.4 GW renewable investment in 2023
• 🔎 NYPA, with DPS, to evaluate technologies, locations, and partnerships for deployment
• 🗣 Hochul calls for an energy policy built on abundance, independence, and supply chain security

“We must embrace an energy policy of abundance… to ensure New York controls its energy future.”

— Governor Kathy Hochul