Category: General sustainability

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  • ESPR: Understanding the latest EU regulation to promote the circular economy

    ESPR: Understanding the latest EU regulation to promote the circular economy

    Understanding the New European “ESPR” Regulation on Ecodesign

    The European Union (EU) has taken significant steps to promote sustainability and reduce environmental impact through regulatory frameworks. One of the latest initiatives is the Ecodesign for Sustainable Products Regulation (ESPR). This regulation aims to improve the sustainability, durability, and circularity of products sold within the EU, ensuring that they are designed with their entire lifecycle in mind. The regulation introduces a few majors changes : the possibility to set new ecodesign requirements as standards for products to be sold in EU, the creation of a Digital Product Passport, and introduce a ban on the destruction of unsold consumer products. It also steer the €1,8 trillions Public spending towards more sustainability.

    This article provides a comprehensive overview of the ESPR, its objectives, key requirements, and implementation timeline.

    Find the PDF summary here.
    Access the EU page related to CSRD here.

    What is the new ESPR?

    The ESPR is the newest piece of EU regulation to promote products that are more durable and circular. This regulation is aligned with the Circular Economy Action Plan (CEAP) and the European Green deal. It entered into effect on july 18th 2024 and creates a framework for European lawmakers to set new standards for ecodesign, circularity and environmental performance of manufactured goods in the European market.

    The regulation sets a highly positive precedent, by aiming to make all products sustainable by default and giving the European Commission the right to implement stricter sustainability requirements across various product categories. The most polluting products are given priority, i.e. intermediate products such as iron, steel and aluminium, lubricants, and chemicals; and products, such as textiles, detergents, electronics, among others.  

    The EU defines sustainable products as displaying at least one of these characteristics :

    • Uses less energy
    • Lasts longer
    • Can be easily repaired
    • Parts can be easily disassembled and put to further use
    • Contains fewer substances of concern
    • Can be easily recycled
    • Contains more recycled content
    • Has a lower carbon and environmental footprint over its lifecycle

    The key new feature: Ecodesign requirements

    The ESPR main feature is that is enables setting new ecodesign standards for virtually any goods sold in Europe (with some exceptions such as Food and Feed). These standards are known as “ecodesign requirements” so that businesses:

    • Improve product durability, reusability, upgradability and reparability
    • Make products more energy and resource-efficient
    • Address the presence of substances that inhibit circularity
    • Increase recycled content
    • Make products easier to remanufacture and recycle
    • Set rules on carbon and environmental footprints
    • Improve the availability of information on product sustainability

    For each category of products, baseline standards will be set and products will have to comply to be allowed to enter the European market. Here is a simplistic version of what these ecodesign requirements may look like:

    EU objectivesKPI exampleDescriptionEarly target exampleAspiration
    Improve product durability, reusability, upgradability and reparabilityRepairability indexReparability index is based on 5 criteria :
    – Availability of technical documentation
    – Ease of dismantling the appliance and required tools
    – Information on spare parts availability and duration
    – Price of spare parts compared to the new product
    – Category-specific criterion for each product
    60% repair rates for electronic products within 5 years (France example)100% of products are easily repairable
    Number of usageSet a duration or number of times a product needs to be functional at minimaNo single use productsProducts are guaranteed for life.
    Make products more energy and resource-efficient
    Energy intensityQuantity of energy used to produce 1 €/$ of product.Energy efficiency applicationEnergy neutrality
    Material efficiency RateTracks the amount of material waste per unit produced.Reduce material waste by 20% during productionEliminate all waste during production
    Address the presence of substances that inhibit circularity
    Use rate of non-recyclable materialsIdentifies the part of the product that is made out of low recyclable materialsLess than 50% of the product should be made out of low recyclable materials100% of the material used are highly recyclable.
    Use rate of envionmental harmful productsIdentifies the harmful substances used during productionAny harmful substance used is carefully collected and treatedThe products don’t use any harmful substances.
    Increase recycled contentUse rate of recycled content Identifies the part of recycled material in the productA minimum of 10% of the material must be from recycled sources
    Part of own product recycledCaptures the part of products that end up recycled at their end of life10% of products should be recycled
    Make products easier to remanufacture and recycleDissassembly timeMeasure the time required to disassemble a productDissassembly time must be reduced by 10%Dissassembly time optimized for repairing and remanufacturing.
    Recyclability RateIdentifies the part of product that are recyclable50% of products are fully recyclableAll products are fully recyclable
    Set rules on carbon and environmental footprintsCarbon footprintMeasures the carbon footprint of the organisation10% reductionNet-zero
    Improve the availability of information on product sustainabilityDigital product passport availableMakes the digital product passport available 100% of products

    As of July 2024, these standards are not yet set and a first version is expected through mid-2025 after the ecodesign Foru. The first draft of these ecodesign requirements is expected to focus on the following industries :

    • Iron & steel,
    • aluminium,
    • textiles (garments and footwear),
    • furniture (including mattresses),
    • tyres,
    • detergents, paints, lubricants, chemicals,
    • energy-related products (including new measures and revisions of existing ones),
    • ICT products, as well as other electronics.

    The digital product passport

    The ESPR also introduces a Digital Product Passport (DPP), a digital identity card for products, components, and materials. This new digital ID will store relevant information to support products’ sustainability, promote their circularity and strengthen legal compliance:

    • Product’s technical performance
    • Materials and their origins
    • Repair activities
    • Recycling capabilities
    • Lifecycle environmental impacts

    The information will be made available electronically by the manufacturers.

    Ban on the destruction of unsold consumer goods

    The ESPR sets the ambitious goal to eliminate consumer waste, starting with unsold products. The approach relies on two distinct axis, like a good cop/bad cop.

    1. Raising awareness : There is little visibility on what’s actually destroyed so as a first step, the EU will require large and eventually medium-sized companies across all product sectors to disclose annual information on their website, such as the number and weight of products they discard, as well as their reasons for doing so. This should bring awareness on the topic and let consumers make better choice.
      • the number and weight of unsold consumer products discarded per year, differentiated per type or category of products;
      • the reasons for discarding products, and where applicable, the relevant derogation under Article 25(5);
      • the proportion of discarded products delivered, whether directly or through a third party, to undergo each of the following activities: preparing for reuse, including refurbishment and remanufacturing, recycling, other recovery including energy recovery, and disposal operations in accordance with the waste hierarchy as defined by Article 4 of Directive 2008/98/EC;
      • measures taken and measures planned for the purpose of preventing the destruction of unsold consumer products.
    2. Ban on the destruction of unsold Consumer Goods in EU. Starting with the textile industry as they are a key contributors to waste, the EU is purely prohibiting the destruction of unsold goods. The Commission estimates that “4 to 9% of all EU textile products is destroyed before use, amounting to between 264,000 and 594,000 tonnes of textiles destroyed each year”.

      The concept of destruction as outlined in this Regulation should cover the last three activities on the waste hierarchy, namely recycling, other recovery and disposal; this makes the goal even harder to reach. Preparation for reuse, including refurbishment and remanufacturing, should not be considered destruction.

      The ban on the destruction of unsold textile should enter effect in :
      • 2 years for large companies
      • Medium sized companies will benefit from a 6 year exemption
      • While Small and Micro companies remain exempt.
      • And more industries should follow suit, including IT!

    Green public procurement

    Finally, the ESPR will also help steer some of the €1.8 trillion EU public spending to more circular and sustainable products and services.

    The ESPR makes the evaluation of sustainability criteria mandatory in tenders so that EU public spending aligns more toward its Green Deal objectives. This should therefore attract investment in the sustainability industry as the opportunity becomes bigger.

    Conclusion

    The Ecodesign for Sustainable Products Regulation (ESPR) represents a significant step forward in the EU’s efforts to promote sustainability and circularity. By setting strict requirements for product design, manufacturing, and end-of-life management, the ESPR aims to reduce environmental impact, conserve resources, and support a circular economy.
    While the regulation presents challenges, notably by adding more regulation and possibly slowing down businesses, it also offers numerous opportunities for innovation, market differentiation, and long-term savings. The successful implementation of the ESPR will require the collaboration of manufacturers, consumers, governments, and recycling industries, working together to create a more sustainable and circular future.

  • 2023 UN SDG Report Analysis: Key Achievements and Challenges in Global Sustainability

    2023 UN SDG Report Analysis: Key Achievements and Challenges in Global Sustainability

    “Unless we act now, the 2030 agenda will become an epitaph for a world that might have been,”

    Said the Secretary-General of the United Nations Antonio Guterres

    This was the comment highlighted in the 2023 UN Sustainability Development Goals (SDG) report. This report from July painted a dark image of our capacity to reach the goals that were set for 2030, with Climate disasters on the rise, even hunger progressing after years of decline.

    So what did the report say ? Let’s look at the top 3 positive and more worrisome messages along with other key messages.

    Top 3 Wins:

    • Renewable Energy Advances 🌞: A shining example of progress is the substantial growth in renewable energy. Investments and innovations in solar, wind, and other renewable sources are reshaping our energy landscape, promising a cleaner, more sustainable future.
      Global renewable energy capacity has increased dramatically, with the International Renewable Energy Agency (IRENA) reporting a record addition of 260 gigawatts (GW) in 2020 alone, which is a nearly 50% increase over the capacity added in 2019.
    • Digitalization Leap 💻: The acceleration in digital technology has been a game-changer, especially in enhancing access to information, education, and services. This digital leap is bridging gaps and opening new avenues for development and equity.
      According to the International Telecommunication Union (ITU), internet usage worldwide has grown from 17% of the global population in 2005 to over 60% in 2021, showcasing the massive leap in digital connectivity.
    • Education Access 📚: Notable strides in education have been made, with increased access to quality education worldwide. This progress is crucial in equipping future generations with the skills and knowledge to sustain and advance our global community.
      UNESCO reports that the global primary school net enrollment rate rose from 83% in 2000 to over 91% in 2020, demonstrating significant progress towards universal primary education.

    Top 3 Misses:

    • Escalating Climate Crisis 🌍: Despite progress in renewable energy, the report soberly notes that we are lagging in combating climate change. Rising temperatures, extreme weather events, and biodiversity loss remain alarming challenges needing immediate action.
      The World Meteorological Organization (WMO) stated that the last seven years, up to 2020, have been the warmest on record, indicating a continuing trend of global warming.
    • Widening Inequalities 📉: Inequality continues to be a significant global issue, exacerbated by the pandemic. Economic disparities within and between countries are growing, threatening social cohesion and sustainable development.
      The World Bank highlighted that the COVID-19 pandemic has pushed an additional estimated 88 million to 115 million people into extreme poverty in 2020, reversing a two-decade trend of poverty reduction.
    • Reversal in Hunger Reduction 🍽️: Alarmingly, after years of decline, hunger and food insecurity have been on the rise. This reversal is a stark reminder of the fragility of our progress and the need for sustained efforts in food security.
      The United Nations reported that the number of undernourished people grew by as many as 161 million in 2020, reaching an estimated total of 811 million worldwide, significantly set back by the impacts of the COVID-19 pandemic.

    Other Important Messages:

    • Health Systems Under Pressure 🏥: The global health crises have stressed the importance of robust health systems. Strengthening healthcare infrastructure remains crucial for combating current and future health challenges.
    • Sustainability in Business 🌿: The report emphasizes the vital role of the private sector in achieving the SDGs. Businesses are encouraged to integrate sustainability into their core strategies, aligning profit with planetary and societal well-being.
    • Call to Collective Action 🤝: The overarching message is clear – achieving the SDGs requires a collective effort. It calls for partnerships across governments, businesses, and civil society to unite in this critical mission.

    In conclusion, while the 2023 SDG Report presents a mixed bag of progress and setbacks, its underlying message is unmistakably clear: there’s an urgent need for concerted and accelerated action across all sectors.

    And while we could say that this is “government stuff”, businesses are key in shaping a sustainable, equitable future and should contribute as much and to as many of these goals as it can. It can be as much as an opportunity for growth and efficiency as it remains an imperative for compliance to existing and upcoming regulations.

    As business leaders, the report offers not just insights but actionable pathways to integrate these goals into our strategies, ensuring our businesses are not just successful but also responsible stewards of a sustainable future. 🌟🌏

  • Redefining Packaging: A Sustainable Approach for Today’s Businesses

    Redefining Packaging: A Sustainable Approach for Today’s Businesses

    The Role of Packaging in Modern Business

    Packaging is often a crucial element of a company’s marketing strategy, acting as an emblem of the product itself. Iconic examples like Toblerone’s triangular box or McDonald’s Happy Meal box illustrate how packaging can become a symbol of brand identity. However, beyond its role in branding, packaging also significantly impacts the environment. The criticism Amazon faced for using oversized boxes is a prime example of how wasteful packaging practices can attract negative attention. In response, businesses are increasingly focused on reinventing their packaging to make it not only functional and visually appealing but also sustainable.

    Innovative Approaches to Sustainable Packaging

    And the industry is quite innovative, coming up with many ways to achieve this! During my time at Amazon, I loved the idea of shifting to e-commerce-friendly packaging was inspiring. The idea is simple yet powerful: create packaging that’s ready for shipment, eliminating the need for extra layers and reducing waste. And Amazon was lobbying this idea directly with the largest FMCG companies to make an impact.

    In this article, we explore practical strategies to enhance packaging sustainability, each with its definition, real-life examples, and potential for sustainability.

    Practical Strategies for Enhancing Packaging Sustainability

    1. Using Sustainable Materials

    The choice of materials in packaging plays a critical role in its environmental impact. By opting for sustainable materials, businesses can significantly reduce their ecological footprint. These materials, whether derived from responsibly managed forests, recycled sources, or compostable plant-based options, are designed to minimize environmental harm while maintaining functionality and appeal. Sustainable material selection is the foundation for creating packaging that aligns with modern ecological values.

    • Cardboard from Sustainable Sources
      • Explanation: Sourcing cardboard from sustainably managed forests ensures that the materials used do not contribute to deforestation or environmental degradation. Certifications like FSC (Forest Stewardship Council) guarantee that the cardboard comes from responsibly managed forests.
      • Example: IKEA’s use of FSC-certified cardboard demonstrates a commitment to sustainable forestry practices, contributing to forest conservation and reducing environmental harm.
      • Impact: High sustainability potential due to its role in promoting forest conservation.
    • Recycled Cardboard or Plastic
      • Explanation: Incorporating recycled content in packaging reduces the demand for virgin materials, conserving natural resources and reducing waste. This practice also supports the recycling industry by providing a market for recycled materials.
      • Example: Loop Industries’ transformation of waste plastic into high-quality PET plastic used by major brands showcases how recycling can be integrated into packaging on a large scale.
      • Impact: High sustainability potential due to waste reduction and resource conservation.
    • Compostable Materials
      • Explanation: Compostable packaging is designed to break down safely in composting environments, returning nutrients to the soil. This type of packaging is particularly beneficial for products that are likely to be disposed of quickly.
      • Example: SunChips’ use of compostable bags made from plant-based materials is a pioneering example, though it faced challenges in consumer acceptance due to noise levels.
      • Impact: Moderate to high sustainability potential, as it can significantly reduce landfill waste and enrich soil.

    2. Using Fewer Materials

    Reducing the amount of material used in packaging is a direct way to lessen environmental impact. Minimalist and customized packaging designs focus on using only what is necessary to protect and present the product, thereby cutting down on waste. This approach not only conserves resources but also reduces costs and enhances the efficiency of the entire packaging process, reflecting a commitment to sustainability in every aspect.

    • Minimalist Packaging
      • Explanation: By simplifying packaging designs, companies can use fewer materials, reducing resource consumption and waste. Minimalist packaging often focuses on the essential functions of protection and branding without unnecessary frills.
      • Example: Apple’s packaging is renowned for its minimalist approach, which not only enhances the unboxing experience but also minimizes environmental impact.
      • Impact: High sustainability potential through resource and waste reduction.
    • Customized Packaging
      • Explanation: Tailoring the size and shape of packaging to the specific dimensions of a product reduces the need for excess material and minimizes void space. This approach also improves shipping efficiency.
      • Example: Amazon’s technology for customizing parcel sizes to fit specific products exemplifies how tailored packaging can reduce waste and optimize material usage.
      • Impact: High sustainability potential by minimizing waste and improving efficiency.
    • E-commerce Focused Packaging
      • Explanation: Packaging designed specifically for online retail can be optimized for protection and efficiency, often eliminating the need for additional layers or materials that are necessary for in-store displays.
      • Example: Amazon’s “Frustration-Free Packaging” initiative reduces the use of excess materials and focuses on recyclability, aiming to improve both the customer experience and environmental impact.
      • Impact: Moderate sustainability potential as it balances protection with material efficiency.
    Frustration free packaging

    3. Increasing Packaging Lifecycle

    Extending the lifecycle of packaging is a powerful strategy for sustainability. By designing packaging that is reusable, recyclable, or multi-functional, companies can ensure that their packaging stays out of landfills and serves multiple purposes over time. This approach not only reduces waste but also encourages a circular economy, where packaging materials are continuously reused and repurposed, minimizing the need for new resources.

    • Reusable Packaging
      • Explanation: Designing packaging that can be reused multiple times extends its lifecycle, reducing the need for single-use packaging. This approach is particularly effective in reducing waste in industries where packaging is a significant cost and environmental burden.
      • Example: The Loop platform’s use of durable containers that customers return for refilling represents a significant shift towards a circular economy model.
      • Impact: High sustainability potential due to extended packaging life and waste reduction.
    • Enhanced Recyclability
      • Explanation: Making packaging more recyclable involves minimizing the use of mixed materials, which are often difficult to separate during the recycling process. This increases the likelihood that packaging will be recycled rather than discarded.
      • Example: Nestlé’s commitment to making 100% of its packaging recyclable or reusable by 2025 reflects a growing industry trend towards enhancing recyclability.
      • Impact: High sustainability potential as it facilitates recycling and reduces landfill waste.
    • Multi-functional Packaging
      • Explanation: Packaging that serves additional purposes beyond its primary function can reduce the need for additional products and extend its usability. This approach can also add value to the product, enhancing the customer experience.
      • Example: Puma’s “Clever Little Bag” reduces cardboard use and doubles as a reusable shoe bag, combining practicality with environmental consciousness.
      • Impact: Moderate to high sustainability potential due to added value and extended usability.
    Puma’s “Clever little Bag”

    4. Optimized Processes

    Sustainability in packaging also involves optimizing the processes surrounding its production, distribution, and disposal. By partnering with eco-friendly suppliers, optimizing logistics, and producing packaging locally, businesses can reduce their overall environmental impact. These process improvements not only enhance sustainability but also often lead to cost savings and greater operational efficiency, making them a win-win for both the environment and the bottom line.

    • Sustainable Supplier Practices
      • Explanation: Partnering with suppliers who prioritize sustainability ensures that the entire supply chain supports environmental goals. This can involve sourcing materials from eco-friendly suppliers or collaborating with logistics partners who use green technologies.
      • Example: Many companies are now incorporating sustainability criteria into their supplier selection processes, enhancing the overall sustainability of their operations.
      • Impact: Moderate sustainability potential, as it influences the broader supply chain.
    • Efficient Logistics and Transportation
      • Explanation: Optimizing packaging for transportation efficiency involves reducing the size and weight of packages to lower transportation costs and emissions. This can also involve using innovative materials that reduce packaging volume.
      • Example: Dell’s use of bamboo cushioning not only provides sustainable protection for products but also reduces the volume of packaging, improving shipping efficiency.
      • Impact: High sustainability potential through emission reductions and cost savings.
    • Localized Production
      • Explanation: Manufacturing packaging materials close to where they will be used reduces the carbon footprint associated with transportation. This approach can also support local economies and reduce lead times.
      • Example: Lush Cosmetics’ local sourcing of packaging materials demonstrates how companies can reduce transportation emissions and support local suppliers.
      • Impact: Moderate sustainability potential as it cuts down on transport-related emissions.
    Dell Bamboo cushions

    Conclusion

    By adopting these strategies, businesses can not only reduce their environmental impact but also strengthen their brand identity in an increasingly eco-conscious market. Sustainable packaging is no longer just a trend; it’s a necessity for companies aiming to stay relevant and responsible in today’s world. As sustainability continues to shape consumer preferences and regulatory landscapes, redefining packaging practices becomes essential for long-term business success.

  • UN Sustainable Development Goals: The Sustainability North Star for the world

    UN Sustainable Development Goals: The Sustainability North Star for the world

    The United Nations’ Sustainable Development Goals are primarily goals crafted for countries in 2015, to make the world a better place by 2030. Since then, it has been used as a framework for businesses to design and develop their sustainability strategy to be all-encompassing. Many annual reports use now these SDGs to report on the company’s ESG strategy.

    In this article, we will explore what the UN Sustainable Goals are and why they matter to businesses (even if they are primarily for governments).

    I. Understanding the UN Sustainable Development Goals

    The Genesis and Vision

    The SDGs were born out of the 2012 United Nations Conference on Sustainable Development in Rio de Janeiro. Officially adopted in 2015, they are a set of 17 interconnected objectives designed to address the world’s most pressing challenges by 2030. These goals cover a broad spectrum, from eradicating poverty and hunger to promoting sustainable industrialization and fostering innovation. Their website is updated frequently and contains a lot of information on each areas !

    Country Participation

    Participation in the SDGs by countries is voluntary and collaborative. Nations across the globe are encouraged to adopt these goals as part of their national development agendas and strategies. While the SDGs are not legally binding, they carry significant moral and political weight, as they represent a universal commitment to tackling critical global issues. Countries report their progress voluntarily through platforms like the High-Level Political Forum on Sustainable Development, fostering a spirit of shared responsibility and international cooperation.

    The List of Goals

    The Goals are the following (self explanatory):

    1. No Poverty
    2. Zero Hunger
    3. Good Health and Well-being
    4. Quality Education
    5. Gender Equality
    6. Clean Water and Sanitation
    7. Affordable and Clean Energy
    8. Decent Work and Economic Growth
    9. Industry, Innovation, and Infrastructure
    10. Reduced Inequalities
    11. Sustainable Cities and Communities
    12. Responsible Consumption and Production
    13. Climate Action
    14. Life Below Water
    15. Life on Land
    16. Peace, Justice, and Strong Institutions
    17. Partnerships for the Goals

    The Goal’s Target and Indicators

    Each goal, with its specific targets and indicator, offers a roadmap for each country to contribute meaningfully to global sustainability.

    For the Goal 12 of responsible Consumption and production, there are 11 targets with indicators that will be used to track and monitor changes.

    II. Why the SDGs Matter to Businesses and ESG Strategy Integration

    While the SDGs have primarily been created for countries and public institutions, as a comprehensive roadmap to a better world, it is a great framework when it comes to designing ESG strategies for businesses. Nowadays, the primary topic discussed is carbon, but this framework helps businesses think beyond and incorporate all aspects when deciding to focus their action.

    Inspiring Comprehensive ESG Strategies

    The SDGs provide a comprehensive framework for Environmental, Social, and Governance (ESG) strategies. Aligning with these goals ensures that a company’s ESG approach addresses the most critical global challenges. From reducing the carbon footprint (Goal 13: Climate Action) to ensuring inclusive practices (Goal 5: Gender Equality), these goals guide businesses towards a holistic and impactful sustainability strategy.

    Business Impact and Opportunities

    Beyond the moral “duty” to strive for each of these goals, they are aspirations that will ensure businesses stay compliant with the ever-growing regulations and never get caught in PR crises.
    Gender equality (Goal 5) is already mandated by law in many countries and bad practices are more often condemned.
    If circular economy (Goal 12) is encouraged, why isn’t every business looking at how to make their products more repairable and continuing to make disposable products? Even Apple didn’t win against the EU and had to change iPhone charging cables.

    Aspiring for these goals guarantees businesses a safer ride.

    Conclusion

    So, whether you are looking for a starting point for your sustainability strategy, or want to make it more comprehensive, the UN Sustainable Development Goals provide an excellent framework to ensure your business is at the forefront of sustainability or simply wants to remain relevant.

    Sometimes, it’s just about common sense and applying the principles within its own organization: how can my products not destroy marine life? How can I make sure that gender equality is the norm? How can my products become more repairable and use recycled materials etc…

    But it can also be about fostering community projects, local businesses and connecting with our environment to contribute positively.

    Trying to uphold these objectives also maybe just guarantee better sleep at night for any business leader, their organization is literally doing good.

  • sustainability claims: The EU is protecting its consumers from being misled

    sustainability claims: The EU is protecting its consumers from being misled

    Last month, the EU voted to new rules aiming to make product labelling clearer and more trustworthy by banning the use of environmental claims such as “environmentally friendly”, “natural”, “biodegradable”, “climate neutral” or “eco” without proof.

    As part of the objective to empowering consumers for the green transition, the EU wants to offer better protection against unfair practices and better information” by making it clearer for consumers what is really sustainable vs. what is greenwashing.

    What It Does:

    • Objective: Enhances consumer rights and prohibit greenwashing claims by amending two directives (Unfair Commercial Practices Directive 2005/29/EC and Consumer Rights Directive 2011/83/EU).
    • Focus: Addresses unfair commercial practices, especially greenwashing, early obsolescence, and misleading sustainability labels.
    • Key Measures:
      • Information on the durability and reparability of products.
      • Clear and accurate environmental claims.
      • Prohibition of misleading sustainability labels and practices related to early obsolescence of goods.

    Steps for Supporting a Green Claim:

    The document outlines the process and document to provide to the government institutions before a green claim can be made! The final information are still due to be released, including who to contact, delays for approval etc…

    1. Durability Guarantee: Traders must provide information on the existence or absence of a producer’s commercial guarantee of durability for goods.
    2. Software Updates: Information on the availability of free software updates for goods with digital elements must be provided.
    3. Reparability Information: Traders must provide a reparability score or other relevant repair information for goods.
    4. Environmental and Social Impacts: Traders must ensure accuracy in claims regarding the environmental and social impacts of products.
    5. Future Environmental Performance: Environmental claims related to future performance must involve clear commitments with an independent monitoring system.
    6. Comparison Accuracy: For sustainability information tools that compare products, traders must provide information about the comparison method, products, suppliers, and update measures.

    Consequences of Fraudulent Claims:

    1. Prohibitions: Several practices are banned, including the use of non-certified sustainability labels, making unfounded environmental claims, and practices related to early obsolescence.
    2. Enforcement Mechanisms: The proposal relies on enforcement mechanisms in existing EU consumer law, recently strengthened by the Better Enforcement and Modernisation Directive and the Representative Actions Directive.
    3. Sanctions for Non-Compliance: Companies breaking the rules may be excluded from public procurements, lose their revenues and face a fine of at least at 4% of their annual turnover.

    So in theory, any products that will claim to be eco-friendly will have to undergo this new process and businesses who don’t may have to remove the products from sales and/or be prosecuted. There will however be exemption for small businesses in order to not add more burden to them.

    With this new move, and the recent agreement on a framework regarding carbon offset, the EU is really moving toward less greenwashing and more true action.

  • Sustainable Procurement: The Untapped Opportunities of the Circular Economy

    Sustainable Procurement: The Untapped Opportunities of the Circular Economy

    In a world that is increasingly aware of its environmental footprint, the concept of the circular economy has emerged as a beacon of sustainable practice. This transformative approach shifts the traditional linear economy’s ‘take-make-dispose’ model to a more sustainable ‘reduce-reuse-recycle’ cycle. For businesses, particularly in procurement and supply chain management, understanding and integrating the principles of the circular economy is not just an environmental imperative but a strategic opportunity. This article gives a quick overview of what the circular economy is and lists some practical steps for procurement professionals and business leaders.

    I. What is the Circular Economy?

    The Linear Economy:

    Currently, our world predominantly operates on a linear economy model. This approach follows a straightforward ‘take-make-dispose’ pattern.

    Resources are extracted, transformed into products, and eventually discarded as waste after their useful life. This model has significant downsides: it leads to resource depletion, environmental degradation, and creates a vast amount of waste that often ends up in landfills or the oceans.

    Transitioning to the Circular Economy:

    In contrast, the circular economy is based on the principles of the 3Rs: Reduce, Reuse, Recycle; and the triple bottom line. This model aims to keep products, equipment, and infrastructure in use for longer, thus improving the productivity of these resources.

    • Reduce: Minimizing waste and resource use. For businesses, this means considering the environmental impact at every stage of product development, from design to distribution.
    • Reuse: Extending the lifecycle of products through maintenance and repair. Encouraging the use of pre-owned or refurbished items falls under this category.
    • Recycle: Transforming waste materials into new products, thus preventing the loss of valuable materials and reducing the need for virgin resource extraction.

    Adopting these principles can contribute to a company’s bottom line by decreasing costs associated with raw material procurement and waste management while also enhancing brand reputation and customer loyalty in an increasingly environmentally conscious market.

    With these principles in mind, you can imagine a world where companies no longer sell a product but “product-as-a-service” where you pay for using a product that will be continuously repaired, recycled and upgraded by the company, operating in a “closed loop” with its material.

    II. How to get started, with procurement ?

    Start small with identifying suppliers that use circular models

    Entering the world of circularity doesn’t have to be such a radical change where the whole company changes its products and sales strategy, it can start through procurement.

    Start small by piggybacking on existing vendors, products and services by asking yourself: What are the purchases that your business does and that could be recycled ? Repaired ? Re-used ?

    1. Electronics: For IT equipment, a company could procure certified refurbished laptops from a reputable vendor. These laptops, having undergone thorough testing and restoration to original specifications, offer a sustainable and cost-effective alternative to buying new.
      Fully repairable and recyclable laptops integrating circular economy like Framework are starting to appear.
    2. Packaging Materials: A business can switch to packaging materials made from recycled cardboard or biodegradable plastics for its shipping needs. This move not only supports recycling industries but also reduces the company’s carbon footprint.
      Or simpler,  find suppliers that use recycled or biodegradable packaging materials for shipping products to you: how many tons of plastics does your business receive and send every year? How can you reduce that number?
      Or even simpler, make sure your office cleaning supplies and soap dispenser are bought with refillable bottles, or don’t use throw-away cups for coffees.
    3. Uniforms and Workwear: If your company uses uniforms, they can choose to source uniforms made from recycled polyester, which is often created from recycled plastic bottles or other more sustainable materials. This approach not only reuses plastic waste but also offers durable and sustainable workwear.
      Or even simpler, when considering your next employee SWAG, maybe consider a circular manufacturer for this corporate sweater!
    4. Office Furniture: There are many options to integrate circularity in Office Furniture, whether that is by buying office furniture made from recycled materials, to buying repairable furniture. Companies like Interface (from Cradle to Cradle book !) are well-known for their modular carpet tiles and their commitment to sustainability and circular economy principles. At least, make sure there is a plan for disposing of the office furniture you are buying from now on (it may as well be financially sound!)
    5. Office Supplies: Choosing office supplies made from recycled materials (e.g., recycled paper, pens made from recycled plastic) to promote the use of recycled content and reduce the demand for new raw materials could be a good start. Most businesses already track printing usage with badges, also preventing some abuses.
      Most distributors these days offer some green labels, check them out as they can also save some bucks along the way.
      Or even simpler, educate your business and promote paper-free practices.

    By implementing these specific examples in procurement strategies, businesses can make significant strides towards sustainability, reflecting a commitment to the circular economy model.

    These are small and easy steps, yet potentially impacting your business footprint significantly.

    Introduce circular models from within !

    Now, if you already explored this, then start looking beyond and try to see how you can implement circularity from within your business and operations. What is it that your company keeps on buying and disposing ? is there a better way around it? What generates the most waste in the organization? These could be good questions to ask yourself and business leaders to identify opportunities.

    This could be :

    • Things you are buying every year (vast question, and it should include the business, most notable the shipping supplies which are a great untapped opportunity
    • Things you dispose when a site/branch closes or is move
    • Things that are not standardised (they are usually few valid reasons for non standard, if you dig deep enough)

    Implementing circularity where out of the box solution don’t exist can be hard as it requires buy-in from your internal stakeholders to this vision, and finding suppliers ready to make their offering evolve to match your vision. But often the return on investment can be substantial, as after all, the best savings is the purchase you don’t make!

  • Stop believing planting trees will save us: a reality check

    Stop believing planting trees will save us: a reality check

    The concept of planting trees to combat climate change is appealing in its simplicity and natural appeal. And many companies have touted their efforts and pledge to plant trees to offset their impact. However, while trees are indeed valuable allies in our environmental efforts, relying solely on planting trees as a means to reverse climate change is an overly optimistic and insufficient approach. This article aims to shed light on the beneficial role of tree planting while highlighting its limitations, backed by quantitative data and examples.

    The Role of Trees in Carbon Sequestration

    Trees are nature’s carbon-capture powerhouses. On average, a young, healthy tree can absorb about 22 pounds (10 kilograms) of CO2 per year and up to about 48 pounds (22 kilograms) annually as it matures. Over its lifetime, a single tree can absorb roughly one ton of CO2. While these numbers demonstrate the individual power of trees, the broader impact requires a much larger scale.

    The Limitations of Tree Planting

    Despite the clear benefits, several factors limit the efficacy of tree planting as a standalone solution to climate change:

    1. Space Constraints: The sheer volume of trees needed to make a substantial dent in global CO2 levels is staggering. A study in the journal Science (2019) suggested that planting about 1.2 trillion trees could theoretically absorb two-thirds of human-made carbon emissions. However, this would require over 3.5 million square miles of land – an area about the size of the United States – dedicated solely to this purpose. Currently, there isn’t enough suitable, available, and unoccupied land to reach these numbers without encroaching on vital agricultural or urban areas.
    2. Growth Time: Trees take time to grow and reach their full carbon-absorbing potential. This delay means that the benefits of today’s planting efforts will not be fully realized for several decades, a timeline that doesn’t align with the urgent need to reduce atmospheric CO2 levels.
    3. Ecological and Agricultural Considerations: Planting massive numbers of trees, especially in monoculture formations, can disrupt local ecosystems. Moreover, converting large tracts of land to forests could impinge on agricultural productivity, posing threats to food security. This can lead to making diversity disappear for an elusive benefit.
    4. Emission Reduction Overshadowing: Emphasizing tree planting can detract from the critical need to reduce current CO2 emissions. To put it in perspective, global CO2 emissions in 2019 were approximately 36.8 billion tons. Even with effective tree-planting campaigns, this massive emission volume cannot be offset solely by forests and we have to find, and develop other alternatives.

    Beyond the physical limitations of Tree planting

    An additional caveat to consider : Many of the tree-planting projects that company claim to offset their emission are plain green-washing as they cover areas that are already forested and oftentimes even protected parks that would have otherwise remained forested so the claims are in fact detrimental as we allow the corresponding emissions to be released when in fact no offset was made.

    For instance, the World Resources Institute in Mexico found issues with Mexico’s billion-dollar government-funded environmental recovery program, Sembrando Vida. The program was intended to help meet climate targets under the Paris Agreement by paying farmers to plant trees. As a result, 80 million trees were planted in a few years (14% of the goal); sounds great right ? However, an the same time, the amount of trees cut dwarfed the amount of trees planted, and to make matters worse, 80% of these trees died within 5 years as they were not taken care of or suited to the local climate and incurred a few corruption scandals in Mexico.

    This whole topic is discussed in the excellent video from John oliver on the topic :

    Conclusion

    Planting trees undoubtedly offers numerous environmental benefits, including carbon sequestration, biodiversity support, and ecosystem preservation. However, the scale of the climate crisis demands a more comprehensive approach. Significant reduction in greenhouse gas emissions, a shift towards renewable energy sources, and widespread adoption of sustainable practices are imperative. Trees are a part of the solution, but they cannot shoulder the burden of climate change mitigation alone. A balanced, multi-pronged strategy is essential to address the complexity and severity of the ongoing climate crisis.

  • Embracing Business Sustainability: Understanding and Applying the Triple Bottom Line with Insights from “Cradle to Cradle”

    Embracing Business Sustainability: Understanding and Applying the Triple Bottom Line with Insights from “Cradle to Cradle”

    In the ever-evolving landscape of business, sustainability has shifted from a peripheral concern to a central strategy for long-term success. Integral to this shift is the concept of the Triple Bottom Line (TBL) – a framework that expands the traditional reporting framework to include social and environmental, alongside financial performance. This article aims to elucidate the TBL concept and illustrate its application using a compelling example from the textile industry, as highlighted in the influential book Cradle to Cradle” by William McDonough and Michael Braungart.

    Understanding the Triple Bottom Line


    The Triple Bottom Line, conceptualized by John Elkington in 1994, revolutionized how businesses measure success. Traditionally, the singular focus was on profit – the financial bottom line. However, TBL introduces two additional ‘bottom lines’: social (People) and environmental (Planet) performance.

    • Profit (Economic Sustainability): This dimension is about ensuring that a business is economically viable and profitable. But in the TBL framework, economic success goes beyond mere profit. It involves contributing to the economic health of the wider community, maintaining fair practices, and ensuring long-term financial stability.
    • People (Social Sustainability): This aspect focuses on the social implications of business operations. It encompasses labor practices, community engagement, and the overall impact on society. Businesses are expected to operate ethically, respect human rights, and contribute positively to the communities they affect.
    • Planet (Environmental Sustainability): This dimension involves the company’s environmental footprint. Sustainable practices, such as reducing waste, minimizing emissions, and using renewable resources, fall under this category. The goal is to minimize negative environmental impacts and contribute to the planet’s health.

    At the junction of these three areas, sustainability emerges as a holistic approach that balances profit with people and the planet. It’s a dynamic equilibrium where each aspect supports and reinforces the others, creating a model of business that can endure and prosper over the long term while contributing positively to the world.

    When the focus is only on two of the three components, the approach is not called sustainability but :

    • Bearable: When it intersects the environmental and social aspects of the TBL. Sustainability is considered bearable when it does not compromise the planet’s health or the well-being of the people living on it. In other words, it’s about ensuring that environmental practices are not only ecologically sound but also socially acceptable and beneficial. For example, a company might focus on reducing emissions (good for the environment) in a way that also improves community health (good for people).
    • Viable: When it intersects the economic and environmental pillars. A sustainable practice is viable when it is both environmentally friendly and economically feasible. This means finding solutions that not only reduce environmental impact but also make economic sense for the business. For instance, implementing energy-efficient technologies can reduce costs in the long run while also reducing the environmental footprint.
    • Equitable, when it intersects the social and economic aspects. A practice is equitable when it fairly distributes economic benefits without compromising social equity. It’s about ensuring that economic activities contribute to social welfare and that all members of society have fair access to these benefits. For example, a business practice is equitable when it provides fair wages and safe working conditions, contributing to the economic stability of workers and their communities.

    Sustainability is the intersection of the three pillars of the Triple Bottom Line (TBL) – economic viability, social responsibility, and environmental stewardship. Any approach that aims at less than that is therefore NOT sustainability. At its best, sustainability is a dynamic equilibrium where each aspect supports and reinforces the others, creating a model of business that can endure and prosper over the long term while contributing positively to the world.


    APPLYING THE TBL : The Textile Dye Example from “Cradle to Cradle”

    An excellent illustration of the TBL in action is found in “Cradle to Cradle,” specifically regarding the textile dyeing process. The traditional dyeing process in the textile industry is notorious for its environmental and social impacts. It often involves toxic chemicals that pollute water sources, harm aquatic life, and pose health risks to workers and nearby communities.

    The authors of “Cradle to Cradle,” however, present an innovative approach where they want to break from the linear model of Take, Make, Dispose for textiles. They describe a new dyeing technique that not only eliminates the use of harmful chemicals but also turns the whole process into a positive one, where the production of a sweater is not harming people or the planet and where you could even eat your sweater at the end of its lifecycle. This method uses safe, non-toxic dyes and a closed-loop system that recycles water and materials, significantly reducing environmental harm and many other benefits to all stakeholders.

    Applying TBL to the Textile Dye Example


    In this case, the TBL approach leads to a holistic transformation of the dyeing process, where the author tried to eliminate any chemical dye and ended up selected only a few organic and harmless products, with impressive results for each of the stakeholders :

    • Profit: Economically, the new dyeing method proves beneficial. It cuts costs on waste management and environmental compliance by an estimated 50%, while also reducing raw material usage. This efficiency leads to an approximate 20% reduction in overall production costs. Furthermore, market research indicates a growing consumer preference for sustainably produced textiles, opening new market opportunities.
    • People: The health and safety impact on workers is markedly improved, with a reduction in toxic exposure leading to a reported 40% decrease in health-related complaints and absenteeism. It even led to high employee retention as the work environment no longer felt like a lab, but a safe place to work in. In local communities, improved water quality has led to a 30% decrease in waterborne diseases, highlighting the method’s profound social impact.
    • Planet: Environmentally, the closed-loop water system and reduced chemical usage have led to a 70% decrease in water pollution and a 60% reduction in carbon emissions. These improvements showcase the method’s alignment with environmental sustainability goals.


    The textile dye example is a microcosm of the broader implications of the TBL. It demonstrates how innovative thinking and sustainability can create a harmonious balance between profitability, social responsibility, and environmental stewardship. Businesses adopting the TBL framework can lead to transformative changes, paving the way for a more sustainable future.

    Conclusion


    The Triple Bottom Line is more than a concept; it’s a roadmap for businesses to contribute positively to the world. By balancing economic viability with social and environmental responsibilities, companies can achieve long-term sustainability and set new standards in their industries. The textile dye example from “Cradle to Cradle” is a testament to the power of sustainable innovation, embodying the essence of TBL. As businesses continue to navigate the complexities of the 21st century, the TBL offers a guiding light towards a more sustainable and equitable world for all.

    In the next articles, we will deep-dive into the circular economy, which is really at the heart of this foundational book “cradle to cradle”

  • Is the Corporate Sustainability Reporting Directive Signaling the End of Greenwashing in Europe?

    Is the Corporate Sustainability Reporting Directive Signaling the End of Greenwashing in Europe?

    In April 2021, the European Parliament introduced a new regulation called Corporate Sustainability Reporting Directive. This directive will require most of the biggest 50,000 companies in Europe to analyze and disclose their sustainability impact as part of their annual disclosure, starting from January 2025 and covering the fiscal year 2024. In addition to the extended scope of the CSRD, which goes beyond just carbon footprint calculation and includes social and ethics, maybe the biggest change is that this reporting now needs to be done in a standardized and comparable way across Europe meaning that companies now operate under the same set of hypothesis when it comes to developing their sustainability plan. This represents an important step toward making businesses understand their impact, but also in making sure their claims in terms of sustainability are better monitored.

    Who is concerned by the CSRD obligation?

    Reporting requirement: the EU’s ambition

    The Corporate Sustainability Reporting Directive (CSRD) ambition is to cover the largest part of the businesses in Europe, and its scope is going to increase over time, until 2028 when it will apply to any companies satisfying quite low criteria: being a listed company in EU, or being an EU non-listed company with over 40M€ in turnover, any outside company that hires more than 500 people or 150M€ in turnover. There are finer details for each of these rules, but they do represent a big change as today, companies with 40M€ turnover have close to no obligations in regards to sustainability, and the scale of the obligation will require profound changes and a lot of education.

    Large listed undertakings

    These include any companies listed on an EU-regulated market exchange—except for ‘micro undertakings’ that fail to meet two of the following three criteria on consecutive balance sheet dates:

    • at least EUR 350,000 (450,000$) in total assets.
    • at least EUR 700,000 (850,000$) in net turnover (revenue).
    • at least 10 employees (average) throughout the year.

    EU-based large undertakings, listed or not

    These include any listed or non-listed companies that meet two of the following three criteria on any two consecutive balance sheet dates:

    • at least EUR 20 (25$) million in total assets.
    • at least EUR 40 (50$) million in net turnover.
    • at least 250 employees (average) during the year.

    ‘Third-country’ undertakings

    These include non EU parent companies of EU subsidiaries, with annual EU revenues of at least EUR 150 million in the most recent two years, and also own:

    • a large EU-based undertaking, or
    • an EU-based subsidiary with securities listed on an EU-regulated market exchange, or
    • an EU branch office with at least EUR 40 million in net turnover.

    Thus, the CSRD casts a wide net to ensure that a significant number of companies, across different sectors and sizes, are making sustainability central to their business practices.

    The phasing of the CSRD reporting obligation

    A modest start for 2025

    While the EU’s ambition is to cover the majority of businesses by 2028, the approach is going to be progressive and only the largest companies will have to report on CSRD in the first year. Indeed, only companies that already have to comply with NFRD (Non-Financial Reporting Disclosure) will have to start reporting on CSRD, meaning that this is “only” a change in improved methodology and format for these companies. This represents about 11,000 companies and leaves a substantial segment of the market without the same level of scrutiny and accountability when it comes to sustainability.

    The EU plan to extend the CSRD reporting obligation

    The phasing of the CSRD obligation will be made progressively until 2028 when the full criteria listed above will be enforced. By 2026, the criteria are already so much lowered that it starts to be really significant, though again it only applies to listed companies! Overall, it should cover about 50,000 companies, which is only 0,2% of the 23M businesses in Europe that will have to report on CSRD. The obligation is leaving the vast majority of smaller businesses outside of its scope, surely, in an attempt to not make business impossible (or at least too difficult) to start.
    While there is no clear figure of how much the EU GDP this will cover, it should be a substantial proportion, as taking the example of France, only the CAC40 (top 40 French companies) represents already 51% of the French GDP. While conscious that this % cannot be used for all EU, it can give a positive outlook.

    Starting in financial year 2024 (and reporting in 2025): Compliance is mandated for organizations (or ‘entities’) already mandated to comply with the NFRD. This includes all organizations listed in an EU-regulated market with 500 or more employees.

    Starting in financial year 2025 (reporting in 2026): Compliance is mandated for large listed undertakings (see above) not already mandated to comply with the NFRD.

    Starting in financial year 2026 (reporting in 2027): Compliance is mandated for small and medium-sized undertakings (also called small and medium-sized entities, or SMEs)—companies listed on an EU-regulated market that meet at least two or three of the following criteria:

    • at least EUR 4 (5*) million in total assets.
    • at least EUR 8 (10*) million in net turnover.
    • at least 50 employees average throughout the year.

    Starting in the financial year 2028 (reporting 2029): Compliance is mandated for third-country undertakings.

    Corporate Sustainability reporting expectations :

    Deliverables

    The main deliverable is a comprehensive annual sustainability report. This report should detail the company’s environmental and social impacts, sustainability policies, goals, and the progress made towards achieving these goals. The report should also include proposals for mitigating any significant negative impacts and align with the obligation to reach carbon neutrality by 2050.

    The Corporate Sustainability Reporting Directive (CSRD) covers a wide array of sustainability impacts, going beyond just carbon emissions. Companies will need to provide information on their environmental, social, employee matters, respect for human rights, anti-corruption and bribery issues. This includes, but is not limited to, greenhouse gas emissions, water and energy use, and the impact on biodiversity. The CSRD aims to provide a comprehensive view of a company’s sustainability performance and assess its double-materiality (an important concept that recognizes the impact materiality of sustainability topics at the same level as the financial ones that have been the core of annual reports for decades now).

    This report needs to be clear, concise, and accessible to stakeholders and must adhere to the standardized reporting format to ensure comparability across different companies and sectors. This will allow the public, investors, and other stakeholders to assess and compare the sustainability performance of different companies.

    The European Commission is expected to deliver the first draft of the template for Corporate Sustainability Reporting (CSR) submissions by the end of 2022, but as far as I know, this was not yet done. The proposed approach is to base the reporting on 12 European Sustainability Reporting Standards (ESRS) , which detail disclosures and metrics across sustainability matters in four (4) categories:

    • Cross-cutting: General principles and general disclosures.
       
    • Environmental: Climate change, pollution, water and marine resources, biodiversity and ecosystems, resource use, and circular economy.
       
    • Social: Own workforce, workers in the value chain, affected communities, consumers and end-users.
       
    • Governance: Business conduct.

    Cross-cutting reporting is required of all organizations governed by the CSRD, while environmental, social and governance reporting is mandatory for those organizations that consider them material.

    Penalties for Non-Compliance

    Failure to comply with the Corporate Sustainability Reporting Directive (CSRD) can result in significant penalties. While the exact penalties can vary by country, they may include financial fines, reputational damage, and increased scrutiny from regulators.

    In addition to financial penalties, companies that fail to comply may also face legal consequences. These can range from lawsuits by shareholders, who may argue that the company’s lack of transparency constitutes a breach of fiduciary duty, to regulatory actions by government agencies.

    Furthermore, non-compliance can lead to reputational damage. In an era where consumers and investors are becoming increasingly conscious of the environmental and social impacts of businesses, companies that fail to disclose their sustainability impact may find themselves at a competitive disadvantage.

    Summary and Conclusion

    Pros

    • The Corporate Sustainability Reporting Directive (CSRD) promotes transparency among large companies in Europe.
    • It could lead to more sustainable business practices as companies analyze and disclose their environmental impact.
    • The directive will provide a standardized way of reporting across Europe, making comparisons and analyses easier.
    • It could stimulate competition among companies to be more sustainable.
    • The CSRD could potentially increase trust among consumers and stakeholders due to increased transparency.

    Cons

    • Compliance with the CSRD could impose additional administrative and financial burdens on companies.
    • Smaller companies or those just outside the top 50,000 may not be subjected to the same scrutiny, potentially creating an uneven playing field.
    • The standardized reporting may not accurately reflect the unique sustainability challenges and efforts of each company.
    • The effectiveness of the CSRD in promoting real change versus just “greenwashing” or superficial sustainability efforts is not guaranteed.
    • Companies may face reputational risks if their sustainability reports reveal negative impacts.

    In conclusion, the introduction of the Corporate Sustainability Reporting Directive (CSRD) by the European Parliament is indeed a significant first step towards making sustainability central to business practices. While it does impose new responsibilities and obligations on companies, it also provides an opportunity for businesses to become leaders in sustainability. Yes, the effort required for compliance is substantial. Companies will need to assess their environmental and social impacts, develop comprehensive sustainability policies, and consistently monitor their progress. However, this effort is not without its rewards. By driving transparency and encouraging sustainable practices, the CSRD promotes a level playing field where companies are rewarded for their commitment to sustainability. It’s a challenging yet crucial path forward, and the benefits far outweigh the costs. In the long run, businesses, stakeholders, and the environment stand to gain from this directive.

    We will cover each component of the reporting in more detail so stay tuned for more information on the topic!

  • Embracing a Sustainable Future: The European Union’s Commitment to Environmental Action

    Embracing a Sustainable Future: The European Union’s Commitment to Environmental Action

    EU Sustainability Objectives

    On 2 May 2022, the 8th Environment Action Programme (EAP) entered into force, as the EU’s legally agreed common agenda for environment policy until 2030. This little publicized move is creating a number of noticeable changes throughout Europe and is perhaps marking the beginning of the revolution: less talking, more doing with more actions being felt at every level: businesses, governments, and individuals.

    The long-term priority objective is that, by 2050 at the latest, Europeans live well, within planetary boundaries, in a well-being economy where nothing is wasted. Growth will be regenerative, climate neutrality will be a reality, and inequalities will be significantly reduced.

    There are six priority objectives to 2030

    • achieving the 2030 greenhouse gas emission reduction target and climate neutrality by 2050
    • enhancing adaptive capacity, strengthening resilience, and reducing vulnerability to climate change
    • advancing towards a regenerative growth model, decoupling economic growth from resource use and environmental degradation, and accelerating the transition to a circular economy
    • pursuing a zero-pollution ambition, including for air, water, and soil and protecting the health and well-being of Europeans
    • protecting, preserving, and restoring biodiversity, and enhancing natural capital
    • reducing environmental and climate pressures related to production and consumption (particularly in the areas of energy, industry, buildings and infrastructure, mobility, tourism, international trade and the food system)

    These objectives are ambitious as they are all-encompassing and if realized, will make Europe a truly great place to live in, but how do they translate into the daily life of hundreds of millions of Europeans?

    How does that commitment translate to daily life?

    Business side

    Europe is already a constraining destination when it comes to doing business, or at least it is often said, because of all its regulations, and this is likely to get worse, but for the good cause. Businesses already have to comply with many obligations regarding the safety of the products (CEE for instance), and about child/forced labor, etc.. and have soon to comply with the Corporate Sustainability Reporting Directive (LINK article), but this is not the only change that impacts businesses.

    Here are a few of the latest or upcoming changes, note that this is not a comprehensive list, just a few items that I thought significant because they go beyond the education framework and translate into real impacts:

    • IPhone charging cable: Maybe the latest and most written about change, is when the EU forced Apple to get rid of their charging cable and sell iPhones that use the same USB-C cable as all other phones to limit electronic waste.
    • Reparability index in France for instance, manufacturers are required to indicate the level of repairability of their products, this is the latest in a move that is designed to give consumers more transparency onto what consumers are buying and eventually drive changes. France is now taking this even further, with the creation of a subsidy for people to repair electronic goods instead of throwing them away. This is a great move as this creates both a new habit for consummers, and an industry for repairing electronics.
    • Corporate Sustainability Due Diligence Directive: the next level of CSRD. When CSRD only sets up the framework for reporting the sustainability impact of a company, this directive would oblige these companies to develop a plan that’s in line with the objective of carbon neutrality and Paris Climate Change.
    • Ban of single-use plastic items: From 3 July 2021, single-use plastic plates, cutlery, straws, balloon sticks and cotton buds cannot be placed on the markets of the EU Member States

    Overall, the general increased sensibility to sustainable topics in Europe is a big driver for corporate behavioral change, as consumers are now considering these criteria more and more in their buying decisions.

    Government side

    Governments have long been talking about sustainability and how to implement measures to fight climate change. Over the years, many cities have taken initiatives to make living in it more sustainable: promoting greener transportation, increasing energy efficiency and limiting public lighting, or the maybe more controversial meat reductions in school canteens. Now, Europe is going one step further by giving cities a more pregnant role with real, measurable objectives that they have to commit by.
    I’ll take the example of France, which set up the Climate-Air-Energy Territorial Plans (Plans Climat-Air-Énergie Territoriaux, PCAET), which are individual to each city and lay out the different initiatives to take along with clearly defined KPI. This approach is bounded to be replicated across EU (and cities like Copenhagen haven’t waited !)

    France’s PCAET: The Climate-Air-Energy Territorial Plans in France exemplify this shift. Mandatory for inter-municipalities with over 20,000 inhabitants, PCAETs encompass a range of sustainability metrics that they will have to hit :

    Here is a table outlining various sustainability topics along with two examples for each:

    Sustainability TopicKPI 1KPI 2
    Greenhouse Gas Emissions ReductionReduce emissions by 40% from baseline by 2030Achieve carbon neutrality by 2050
    Renewable Energy AdoptionSource 50% of the city’s energy from renewablesInstall solar panels on public buildings
    Energy EfficiencyReduce energy consumption in buildings by 30%Implement energy efficiency retrofits in homes
    Sustainable TransportationIncrease public transportation usageAdd miles of protected bike lanes
    Waste Reduction and RecyclingAchieve a 60% recycling rateImplement city-wide composting programs
    Water Conservation and QualityReduce potable water useImprove water bodies to exceed environmental standards
    Urban Greening and BiodiversityIncrease green space per capitaPlant a specific number of trees
    Air Quality ImprovementReduce levels of air pollutants like PM2.5 or NOxImplement low-emission zones
    Climate Resilience and AdaptationDevelop strategies against climate risks like floodingEnhance resilience in vulnerable neighborhoods
    Community Engagement and EducationInvolve a percentage of the community in sustainability initiativesEstablish partnerships with local businesses for sustainability
    This table provides a structured view of the various initiatives and goals that cities might set to promote sustainability and combat climate change. Each topic is accompanied by specific, actionable examples that illustrate how these goals can be translated into practical measures.

    Copenhagen’s Climate Plan: Copenhagen, Denmark, is at the forefront of urban sustainability with its ambitious Climate Plan aimed at becoming the world’s first carbon-neutral capital by 2025. Key initiatives include:

    • Extensive cycling infrastructure, promoting a bike-friendly city where more than 60% of residents cycle to work or school.
    • Large-scale investment in renewable energy sources, particularly wind power, contributing significantly to the city’s energy mix.
    • Innovative green building practices and energy-efficient housing developments.
    • Implementation of integrated waste management systems focusing on recycling and reduction of landfill waste.
    • Progressive urban planning incorporating extensive green spaces and water management systems to combat the effects of climate change and enhance the city’s resilience.
    cophengen sustainability bike

    The European Union’s determined approach, as embodied in the 8th EAP and reflected in initiatives like France’s PCAET, marks a significant transition from dialogue to decisive action in environmental sustainability. These comprehensive strategies, spanning from business regulations to urban planning, demonstrate a commitment to reshaping Europe into a sustainable, resilient, and equitable society. This evolution from planning to implementation signifies a crucial step towards meeting the global challenges of climate change and environmental degradation, setting a commendable example for regions worldwide.

    And you, what recent change do you think is the most important ?