ESG International Weekly News 10/16-10/22

October 23,2023
Green and White Minimalist Earth Day Instagram Post-27
Resource:ESG TODAY,Carbon

1.Tesla’s Record Carbon Credit Sales Up 94% Year-Over-Year

In Q3 2023, Tesla achieved record-breaking carbon credit sales, an impressive feat that played a pivotal role in their profit margins. Carbon credits, referred to as regulatory credits, have consistently contributed to Tesla's revenues, with Q3 2023's sales contributing 29% to Tesla's net income of $1,878 million. Interestingly, this figure is a 94% YoY increase. This income stream began in 2017 when Tesla began selling carbon credits to other companies. Despite concerns from CEO Elon Musk regarding global economic instability from ongoing wars, Tesla's carbon credit revenue has remained a significant part of its profitability. Comparing it to Q2 2023's revenue of $282 million, Q3 showcased a notable 96% increase. The top-performing quarter for Tesla in this regard was Q1 2022 with $679 million. A major part of Tesla's mission is promoting cleaner energy and sustainable transport. Further, Tesla's focus isn't just on vehicles; their lithium-based energy storage solutions segment is growing fast. In Q3 2023, revenue from energy generation and storage was up 40% YoY. This growth is driven by Tesla's Californian Megafactory which aims to produce large-scale energy storage solutions. Furthermore, projections indicate a significant market for such solutions, with Tesla's Megapack potentially seizing a large share. Alongside battery storage, Tesla's solar initiatives are critical in their journey to sustainable energy.

在2023年第三季度,Tesla實現了破紀錄的碳信用銷售,這在他們的利潤中起到了關鍵作用。碳信用,被稱為監管信用,在Tesla的收入中始終佔有一席之地,2023年第三季度的銷售佔Tesla淨收入的29%,達到1,878百萬美元。有趣的是,這個數字比去年同期增長了94%。這筆收入開始於2017年,當時Tesla開始向其他公司銷售碳信用。儘管首席執行官Elon Musk對於由於持續的戰爭而引起的全球經濟不穩定表示擔憂,但Tesla的碳信用收入仍然是其盈利能力的重要部分。與2023年第二季度的收入2.82億美元相比,第三季度顯示了96%的顯著增長。在這方面,Tesla的最佳表現季度是2022年第一季度,達到6.79億美元。Tesla的主要任務之一是促進更清潔的能源和可持續的交通。此外,Tesla的重點不僅僅是汽車;他們基於鋰的能源儲存解決方案部分正在迅速增長。在2023年第三季度,能源產生和儲存的收入比去年同期增長了40%。這種增長是由Tesla在加利福尼亞的Megafactory推動的,該工廠旨在生產大型能源儲存解決方案。此外,預測表明,這樣的解決方案有一個巨大的市場,Tesla的Megapack可能佔有很大的份额。除了電池儲存,Tesla的太陽能計劃在他們走向可持續能源的旅程中至關重要。

2.EU Commission to Delay Adoption of Sustainability Reporting Standards by 2 Years

The European Commission plans to delay essential features of its Corporate Sustainable Reporting Directive (CSRD). This delay includes postponing requirements for businesses to offer sector-specific sustainability details and sustainability reporting for non-EU companies. This decision was made public within the Commission's 2024 Work Programme, indicating its action plans for the forthcoming year. A primary objective for 2024 includes reducing the reporting burden on companies. The Commission intends to postpone the deadline for the adoption of sector-specific European Sustainability Reporting Standards (ESRS) by two years. These standards delineate rules on sustainability-related matters for companies under the upcoming CSRD. Initially, the CSRD required sector-specific ESRS to be adopted by June 2024. However, this will now be delayed by two years. Similarly, the mandate for large non-EU companies operating in the EU to submit sustainability reports, initially set for June 2024, is also recommended to be deferred by two years. This delay will help firms concentrate on implementing the ESRS and allow for the development of efficient sectoral ESRS. The Commission's 2024 agenda also emphasizes sustainability and climate actions, notably linked to the EU Green Deal. Proposed actions encompass setting a 2040 climate target, boosting wind turbine deployment, initiating industrial carbon management, and promoting water resilience. It also pushes for finalizing the green deal, which covers sustainable farming, food security, waste management, and environmental protection.


3.Singapore Central Bank Guides Investors, Banks to Avoid Divestment Approach to Net Zero

The Monetary Authority of Singapore (MAS) has released consultation papers detailing proposed guidelines on net zero transition planning for financial institutions. These institutions comprise banks, insurers, and asset managers. MAS' guidelines emphasize the importance of transition planning to facilitate effective climate change strategies by customers and portfolio companies, focusing on net zero economic transition and addressing the tangible impacts of climate change. Instead of divestment, the guidelines advocate for financial institutions to engage proactively with customers and portfolio firms to address and mitigate both physical and transition risks associated with climate change. They're encouraged to aid these companies in decreasing their carbon emissions and fostering resilience against climate change. MAS highlighted the potential negative impact of withdrawing financial support from companies that have robust transition plans, stating it could hinder their decarbonization efforts. Ravi Menon, MAS Managing Director, underscored the importance of supporting entities to decarbonize gradually via credible transition plans rather than divesting from carbon-intensive activities. The guidelines also encourage a long-term perspective on transition planning, extending beyond usual financial or investment timelines, and considering a wide range of environmental risks, including biodiversity loss. Institutions are also urged to be transparent about their climate-related risks and the strategies in place to tackle them.

新加坡金融管理局(MAS)今天發布了一系列諮詢文件,提出了針對金融機構的淨零過渡計劃指引。這些金融機構包括銀行、保險公司和資產管理公司。MAS的指引強調了過渡計劃的重要性,以促使客戶和組合公司制定有效的氣候變化策略,專注於淨零經濟過渡和應對氣候變化的實際影響。指引建議金融機構與客戶和組合公司積極互動,以解決和減少與氣候變化相關的物理和過渡風險,而不是撤資。MAS強調,從有可靠過渡計劃的公司中撤回資金支持可能會阻礙其去碳化努力。MAS董事總經理Ravi Menon強調,支持企業通過可靠的過渡計劃逐步去碳化,而不是從碳密集型活動中撤資的重要性。此外,該指引還鼓勵金融機構對過渡計劃採取長期的視角,超出通常的金融或投資時間表,並考慮到一系列環境風險,包括生物多樣性的損失。該機構還敦促金融機構公開有關其與氣候相關的風險以及應對這些風險的策略。

4.Biden Administration Announces $3.5 Billion Electricity Grid Investment

The Biden administration unveiled an allocation of $3.5 billion for initiatives aimed at bolstering the reliability and resilience of the U.S. electric grid. This commitment, funded by the Bipartisan Infrastructure Law, signifies the most substantial direct investment in the U.S. power grid to date. These funds will potentially catalyze over $8 billion in combined federal and private sector contributions. This move is timely as the underfunding of electricity grids poses a challenge to global climate targets. A recent International Energy Agency (IEA) report suggests that significant expansion and replacement of power lines are needed by 2040, doubling the annual investment to $600 billion by 2030 to adhere to the Paris Agreement's targets. These newly announced investments are part of the inaugural selection under the Grid Resilience and Innovation Partnerships (GRIP) Program. The program focuses on mitigating the impacts of natural disasters, augmenting grid reliability, and promoting innovation in energy transmission and storage. According to the U.S. Department of Energy, these investments will facilitate over 35 GW of renewable energy and fund 400 microgrids. Additionally, the projects resonate with the administration's Justice40 initiative, aiming to direct 40% of clean energy investment gains to communities most affected by climate change. U.S. Energy Secretary, Jennifer M. Granholm, emphasized the significance of these investments in light of extreme weather events and their impact on aging power systems.

拜登政府周三宣布,將撥款35億美元用於加強美國電網的韌性和可靠性的項目,這標誌著對美國電網的最大規模直接投資。這筆新的投資將由雙方基礎設施法律提供資金,預計這些項目將引致超過80億美元的聯邦和私人投資。國際能源署(IEA)本周早些時候發布的報告指出,為了達到巴黎協議的目標,到2040年全球將需要新增或替換8000萬公里的電力線路。這些新的宣布是電網韌性和創新合作夥伴關係(GRIP)計劃的首輪選擇,該計劃資助的活動旨在減少自然災害和極端天氣的影響,提高電網的可靠性、靈活性和效率,並采用創新的電力傳輸、存儲和分發方法。根據美國能源部(DOE)的說法,這些投資將幫助上線超過35 GW的新可再生能源,並投資於400個微電網。美國能源部長珍妮弗·M·格蘭霍姆表示:“由氣候變化引發的極端天氣事件將繼續對國家的老化傳輸系統造成壓力,但拜登總統的美國投資計劃將確保美國的電網能夠提供可靠、負擔得起的電力。

5.Estée Lauder Signs Deal for Recycled Materials for Packaging
雅詩蘭黛簽訂回收材料用於包裝的協議ESG TODAY

South Korean firm, SK chemicals, specializing in chemical and life science products, has entered into a partnership with the global luxury beauty conglomerate, Estée Lauder Companies (ELC). The collaboration entails SK chemicals supplying ELC with recyclable and recycled materials for their product packaging. ELC, whose portfolio encompasses brands like Bobbi Brown Cosmetics, Aveda, Clinique, and La Mer, has previously committed to sustainable packaging milestones in 2021. These include achieving 25% post-consumer recycled content (PCR) in its packaging by 2025 and curtailing the utilization of virgin petroleum-based plastic to 50% or under by 2030. SK chemicals employs a sophisticated recycling method that chemically breaks down waste plastic into its basic units or monomers, which can then be used to produce new plastic. In light of the agreement, ELC aims to innovate its packaging using materials from SK chemicals, notably ECOTRIA CR, SKYPET CR, and ECOZEN CLARO. Both entities have a shared ambition of incrementally boosting the recycled content in their offerings and transitioning away from non-recyclable materials. This collaboration is projected to steer ELC closer to its packaging sustainability aspirations. SK chemicals' CEO, Ahn Jae-hyun, expressed optimism regarding the synergy of the partnership, emphasizing the combined drive of both companies in pioneering their respective sectors and their commitment to a sustainable cosmetic packaging ecosystem.

韓國化學和生命科學產品製造商SK chemicals今天宣布與全球知名美容公司Estée Lauder Companies (ELC)達成協議,為ELC的包裝提供回收和可回收材料。
ELC旗下品牌包括Bobbi Brown Cosmetics、Aveda、Clinique和La Mer,於2021年宣布了一系列可持續包裝目標,包括到2025年使其包裝中的後消費回收含量(PCR)達到25%,並到2030年將其包裝中的原始石油塑料使用量減少到50%或以下。

SK chemicals採用先進的回收技術,將廢塑料化學分解為單體,這是塑料的原材料。根據新協議,ELC將開發使用SK chemicals提供的材料的包裝,包括ECOTRIA CR和SKYPET CR,這些材料包括先進的回收材料,以及可以納入回收流程的ECOZEN CLARO。
SK chemicals和ELC將逐步增加其產品中的回收材料量,並用包括可回收或已回收材料的設計替換其他不可回收的材料,這有助於推動ELC的包裝可持續性目標。

SK chemicals的首席執行官Ahn Jae-hyun表示:“通過這一協議,我們相信在業務和環境方面都可以創造出正面的協同效應,因為領先的循環回收塑料技術的SK chemicals與領先的全球化妝品市場的Estée Lauder公司結為合作夥伴。我們將繼續努力創建一個可持續的化妝品容器生態系統。“