Amazon announced that it is funding a project researching the potential of seaweed to capture and sequester carbon.

The project, North Sea Farm 1, will be the first-ever commercial-scale seaweed farm located between offshore wind turbines, will be based in a wind farm off the coast of the Netherlands, and led by NGO North Sea Farmers.

According to Amazon and North Sea Farmers, the European seaweed farming sector has the potential to reduce CO2 by millions of tonnes a year by 2040, if expanded to occupy the entire space occupied by wind farms. Benefits to utilizing seaweed for carbon capture include the potential to enhance biodiversity, and the ability to produce seaweed without using any land or freshwater. The sector could also generate significant employment opportunities.

Eef Brouwers, Manager of Farming and Technology at North Sea Farmers, said:

“Potentially, up to 85,000 full-time jobs could be created in the European seaweed sector by replicating North Sea Farm 1 across the North Sea, re-purposing the space amongst wind farms. These jobs would not only be in the farming process but also in the production and sales of seaweed-based products.”

Amazon said that it will grant €1.5 million to create the seaweed farm and support a year of research into carbon reduction through seaweed farming. The grant will enable the construction of a 10-hectare seaweed farm, and support analysis to improve the farm’s production capabilities.

The funding for the grant will come from Amazon’s Right Now Climate Fund, a $100 million fund for nature-based solutions focused on restoring and conserving forests, wetlands, and grasslands around the world.

Zak Watts, Director EU Sustainability at Amazon, said:

“Seaweed could be a key tool in removing carbon dioxide from the atmosphere, yet it’s currently farmed at a relatively small scale in Europe. We’re delighted to fund this project to help us reach a greater understanding of its ability to help fight climate change.”

MS&AD Insurance Group Holdings, one of Japan’s largest non-life insurers, announced a series of initiatives aimed at advancing its net-zero strategies, including introducing a new policy to exit underwriting and investment in new coal-fired power plants.

Insurance companies have come under increasing pressure to align their underwriting and investment practices with global initiatives to limit climate change. Earlier this month, United Nations Secretary-General António Guterres urged insurance companies to take part in the global transition to a net-zero economy through the introduction of net zero pledges in their underwriting practices, particularly regarding fossil fuels. Recently, insurance giant Allianz announced sustainability guidelines regarding carbon-based businesses, including a new policy of not serving coal companies that do not have credible transition strategies.

MS&AD’s announcement follows a new goal set by the company last month to reach net-zero CO2 emissions by 2050. The company announced a series of initiatives aimed at reducing across CO2 emissions by society, and to help prepare for climate risk.

In addition to its new coal policy, its initiatives to reduce CO2 emissions by society include supporting the development of clean and renewable energy sources, and the adoption of environmentally friendly vehicles.

Climate change reduction and preparation initiatives include measures to predict and prevent accidents and disasters caused by climate events, and helping companies plan for business continuity in the face of climate risks.

Going forward, MS&AD will create a road map and implement new key performance indicators to promote its plans and advance its climate efforts.

A group of leading global businesses issued an open letter today to the Biden administration to support robust vehicle standards, including a target to achieve 100% sales of new light-duty vehicles with zero tailpipe emissions ideally by 2030.

The letter was issued by key members of the Climate Group’s electric vehicle-focused EV100 initiative, including Siemens, HP, IKEA, and Lyft, ahead of an expected announcement of new vehicle standards by the Biden administration in the next few weeks, in the lead-up to COP26.

According to the letter, an ambitious emission standard will help make EV’s the new normal in the U.S., with benefits of the transition including job creation, improved public health, and a revitalized economy.

The companies also highlighted that:

“Strong vehicle standards will send a strong market signal that the US is committed to emissions reduction and is intent on restoring global automotive leadership. These standards, when paired with the Nationally Determined Contribution (NDC), will create hundreds of thousands of American jobs. In 2020 alone, the clean vehicles industry in the US created more than 270,000 jobs, and, as projections indicate, the US can create 2 million jobs by 2035 with the right regulatory support from our nation’s leaders.’’

Similar standards have been introduced in other countries. In the UK last year, PM Boris Johnson announced that the country will end the sale of new petrol and diesel cars and vans by the end of the decade. Several vehicle manufacturers are also striving towards similar goals, including automotive giant General Motors’s recent announcement of an aspiration to eliminate tailpipe emissions from new light-duty vehicles by 2035. 

Paul Augustine, Senior Manager of Sustainability at Lyft, said:

“When we announced our 100% EVs by 2030 commitment, we said that meeting our goal will require the collective action of industry, government, and nonprofit organizations to overcome the barriers currently preventing wide-scale electrification, including vehicle availability and affordability. Federal vehicle standards will drive automotive industry innovation to solve both of those problems and in turn, help us encourage drivers on our platform to make the switch to EVs.”

Royal Bank of Canada (RBC) announced today a series of new climate and sustainable finance commitments, launched at the bank’s inaugural Environment, Social and Governance (ESG) Conference. The company also announced that it will join climate-focused organizations Partnership for Carbon Accounting Financials (PCAF) and RMI’s Center for Climate-Aligned Finance.

Among the key goals announced by RBC is a new commitment to achieve net zero emissions in its lending by 2050, aligned with the global goals of the Paris Agreement, and a pledge to set interim targets to reduce financed emissions and to build out climate-related stress testing programs. The bank also committed to measure and report financed emissions for key sectors starting in its 2022 TCFD report. In addition, RBC will mobilize $500 billion in sustainable finance by 2025, after achieving its $100 billion target in 2020.

The PCAF is a global collaboration of nearly 100 financial institutions, representing roughly $20 trillion in total assets. In joining the initiative, members have committed to measuring and reporting the greenhouse gas emissions associated with loans and investments. RBC is the second Canadian Bank to join PCAF this week, following an announcement by CIBC.

RBC is the third major bank this week to join RMI’s Center for Climate-Aligned Finance, following announcements by TD and CIBC. Clean energy organization RMI founded the Center in July 2020, aiming to enable financial institutions, corporations, and experts overcome practical obstacles to climate alignment. The Center works across industries to shape sectoral climate alignment initiatives for high-emitting industries and contributes to the development of global solutions, practices, and frameworks, aligning financial decision-making with the decarbonization of the real economy.

Dave McKay, President and CEO, RBC, said:

“Climate change is one of the most pressing issues of our time, requiring us to work more closely with our clients, peers, across industry sectors and with government to help build a sustainable economy for future generations. Our updated climate strategy reinforces the important role RBC has to play in helping clients and communities through the transition to a net-zero economy by 2050. Our commitment to advancing our clients’ ESG goals and accelerating society’s progress is underpinned by our belief that capital can be a force for positive change.”

The Local Authority Pension Fund Forum (LAPFF), representing a group of UK pension funds with £300 billion cumulative assets under management, has published a document calling on the government to ban sales of all new petrol, diesel and hybrid cars by 2025.

Cllr Doug McMurdo, Chair of LAPFF, said:

“We have seen just how quickly government and companies can respond during the coronavirus pandemic. We know that change does not need to take years. Ending road transport emissions is critical in the move to end climate change.”

In February 2020, the UK’s Department for Transportation launched a consultation on ending the sale of petrol, diesel and hybrid cars and vans by 2040, 2035, or earlier, seeking views on topics including the phase out date, the definition of what should be included in the phase-out, and perceived barriers to achieving the proposals.

LAPFF’s statement comes in response to the consultation, arguing that the 2035 proposed deadline is not aggressive enough to address the dangers of climate change. LAPFF stated that w surface transport comprising a quarter of UK carbon emissions it is a significant contributor to the material financial risks of climate change across all asset classes with the potential for loss of shareholder value.

The statement goes on to call on government to ensure that the switch to electric vehicles should align with a just transition to a net zero carbon economy, mitigating the negative impacts to stakeholders. Additionally, LAPFF recommends removing barriers to the switch to electric vehicles, while supporting actions that would speed up the transition, such as fast tracking investment in charging infrastructure, and providing incentives such as tax credits for vehicle purchases.

Internet giant Amazon announced that it has secured the naming rights to the new home of Seattle’s yet-to-be-named NHL franchise and WNBA’s Seattle Storm, and has decided to call it “Climate Pledge Arena.” The name refers to The Climate Pledge, launched in 2019 by Amazon and Global Optimism, which calls on signatories to be net zero carbon across their businesses by 2040—a decade ahead of the Paris Agreement.

Amazon stated that Climate Pledge Arena in Seattle is expected to be the first net zero carbon certified arena in the world, and set a new sustainability bar for the sports and events industry. The arena will be funded with significant investment from Amazon and Oak View Group.

Jeff Bezos, Amazon founder and CEO said:

“We’ve secured naming rights to the historic arena previously known as KeyArena. Instead of naming it after Amazon, we’re calling it Climate Pledge Arena as a regular reminder of the importance of fighting climate change. We look forward to working together with Oak View Group, a new Climate Pledge signatory, and NHL Seattle to inspire global climate action.”

Tim Leiweke, CEO, Oak View Group added:

“There is no question that the state of our planet is a critical issue for all of us. We have a responsibility to future generations to try to leave them with a better world. We love that Amazon is using its naming rights for a cause we care deeply about—this partnership is a visionary step for the facilities business and sport and music industries. Our goal is to be the most progressive, responsible, and sustainable venue in the world. It is not just about one arena—it’s a platform for us to step up and heal our planet.”

Amazon highlighted several of the sustainability aspects of the new arena partnership, including:

First arena in the world targeting net Zero Carbon certification by the International Living Future Institute (ILFI), a leading non-profit organization dedicated to advancing sustainable building practices.

Arena will have all-electric operations and be powered with 100% renewable electricity, both from on-site solar panels and off-site renewable energy. Events at the arena will be made fully net zero carbon through investments in forestry projects with organizations such as The Nature Conservancy that will sequester any remaining carbon emissions from arena operations.

• Carbon emissions and sustainability performance of the arena and all events will be measured and publicly disclosed.
• All operations and events at the arena will be ‘zero waste’ with durable and compostable containers. A minimum of 95% of all arena waste will be diverted from landfills on a weight basis.
• Arena will use reclaimed rainwater in the ice system to create the greenest ice in the NHL.
• Original 44-million-pound roof from the existing arena will be reused in construction to significantly reduce the embodied carbon of the building.
• At least 75% of the arena’s food program will be sourced locally on a seasonal basis to support regional farmers and producers, and all viable unused food from events will be donated to local community food programs.
• NHL Seattle and WNBA Storm tickets will double as free public transit passes to promote use of public transportation for attendees, including on the refurbished Seattle Monorail.
• Amazon and OVG will form the Climate Pledge Arena Sustainability Advisory Council in partnership with community groups to support local environmental initiatives.

Jason F. McLennan, Founder of the International Living Future Institute and CEO of McLennan Design, said:

“Climate Pledge Arena will set a new sustainability standard for sports and event spaces around the world. I commend the commitments from Amazon and Oak View Group to develop this one-of-a-kind venue and inspire climate action. The group’s innovative approach and sustainability mindset—embodied by naming the arena after The Climate Pledge—will provide a green, world-class event space at Seattle’s City Center for the region to enjoy for years to come.”

Tod Leiweke, CEO, NHL Seattle commented:

“We have always set out to create the best home ice advantage; now we are innovating to create ice from reclaimed rainwater and the greenest ice in the country. This is going to be the best arena in the NHL and we’re proud that there will be many opportunities for our fans to make a difference nightly. This is truly remarkable.”

Climate Pledge Arena will be a 18,100-seat multi-purpose venue located at Seattle Center is expected to host 200 events each year, including NHL Seattle, three-time WNBA world champion Seattle Storm, live music and entertainment from the world’s biggest stars, and City of Seattle community events. It is currently undergoing a transformation to construct a brand new arena under the landmark Paul Thiry-designed roof.

Building materials company aims for net-zero CO2 concrete by 2050

Mexico-based building material company CEMEX has announced a new sustainability program, with more ambitious emission reduction targets. The company’s new Climate Action strategy aims to achieve a 35% reduction in CO2 emissions by 2030 from its 1990 baseline. To date, CEMEX has achieved a 22% reduction from 1990 levels, which the company has acknowledged “is not enough.” Additionally, CEMEX has established a new goal of delivering net-zero CO2 concrete by 2050.

To reach its new goals, CEMEX has outlined a detailed strategy, involving rolling out new technologies at the company’s facilities, investing in energy efficiency, using alternative fuels and renewable energy, as well as alternative cementitious materials.

Building materials companies are coming increasingly in focus in the fight against climate change, due to the carbon-intensity of their primary products. Cement production accounts for approximately 8% of global carbon dioxide emissions, with over 900 kg of CO2 emissions generated for every 1000 kg of material produced.

Commenting on the company’s new Climate Action program, CEMEX CEO Fernando A. Gonzalez said:

“Climate change has been a priority for CEMEX for many years. Our efforts have brought significant progress to date, but we must do more. This is why we have defined a more ambitious strategy to reduce CO2 emissions by 2030 and to deliver net-zero CO2 concrete by 2050.”

British newspaper and media service The Guardian announced that it will no longer accept advertising from companies that extract fossil fuels, effective immediately. The ban on oil and gas advertising follows efforts to reduce the company’s carbon footprint and increase reporting on the climate emergency.

In a joint statement, acting CEO Anna Bateson, and Chief Revenue Officer, Hamish Nicklin, explained, “Our decision is based on the decades-long efforts by many in that industry to prevent meaningful climate action by governments around the world,” adding that responding to global heating is “most important challenge of our times.”

The Guardian’s response to the environmental challenge facing the Earth has impacted the company’s reporting. Guardian Editor-in-Chief Katharine Viner, announced last year that the Guardian would adjust its style guide to represent the scale of the environmental challenge facing the Earth, using terms such as “climate emergency” and “global heating” rather than “climate change” and “global warming”. Additionally, the company has announced its commitment to be carbon-neutral by 2030, and has almost entirely divested from fossil fuel investments in its Scott Trust endowment fund.

The Guardian acknowledges that the financial impact of the fossil fuel advertising ban will be difficult, given the headwinds already facing the newspaper industry. According to Bateson and Nicklin:

“The funding model for the Guardian – like most high-quality media companies – is going to remain precarious over the next few years. It’s true that rejecting some adverts might make our lives a tiny bit tougher in the very short term. Nonetheless, we believe building a more purposeful organisation and remaining financially sustainable have to go hand in hand.”

First of Big Four to reach carbon milestone

Consulting and advisory firm EY announced today its commitment to be carbon neutral by the end of 2020, through a program of reducing and offsetting carbon emissions.

EY’s emission reduction program includes plans to lower travel emissions, employ sustainable procurement practices and purchase more renewable energy, including wind and solar, to power EY offices. The company will also purchase carbon credits to offset its carbon footprint and invest in projects that reduce carbon emissions or remove carbon from the atmosphere, such as reforestation projects.

Supporting clients’ sustainability goals

Additionally, EY announced plans to expand its global sustainability strategy which will focus on helping clients innovate and use technology to reduce their own carbon emissions, while driving sustainable economic growth. Over the past 15 years, EY’s Climate Change and Sustainability Practice has supported clients’ decarbonization and sustainability journeys by helping them implement a range of solutions crossing sustainability, supply chains and reporting. 

First of Four

EY is one of the four largest global consulting and accounting firms, known as the “Big Four,” which also include PWC, KPMG, and Deloitte. Achieving carbon neutrality in 2020 would make EY the first of the Big Four to reach this milestone. PWC has committed to source 100% of electricity consumption from renewables and to offset residual energy use by 2022.

Commenting on the firm’s new commitments, Carmine Di Sibio, EY Global Chairman and CEO, said:

“Protecting the planet for future generations is an important issue for EY people and becoming carbon neutral this year is a real step forward on the EY sustainability journey. As an organization that spans more than 150 countries, with varying views and ambitions on climate change, we recognize this is no easy feat. However, with over 284,000 EY people who are dedicated to our purpose of building a better working world, EY has a once-in-a-lifetime opportunity to take immediate action to create sustainable, inclusive growth for generations to come.”

Says Exxon lagging peers on climate action

The Church Commissioners for England has reiterated its support for a shareholder resolution filed against the board of ExxonMobil, following Exxon’s move earlier this week to block the resolution from going to a vote in 2020. The Commissioners manage an £8.3bn investment fund, using the income from investments to contribute towards the cost of mission projects, dioceses in low-income areas, bishops, cathedrals, and pensions.

The resolution, filed by activist group As You Sow, asked Exxon to report if and how it intends to bring its operations in line with the Paris Agreement’s goal of maintaining global temperature rise well below 2 degrees Celsius. According to the resolution:

“The energy industry is one of the largest contributors to climate change and ExxonMobil is the fourth largest global emitter in the sector. ExxonMobil’s investment choices matter. Every dollar invested in fossil fuel resources increases risk to the economy and investor portfolios.”

The resolution continues to list several of Exxon’s large peers, who have taken more significant steps to align with the Paris Agreement goals:

“Shell announced Scope 3 greenhouse gas intensity reduction ambitions and has decreased reserves life below the industry standard. Total has invested substantially in renewable energy and storage. Equinor rebranded itself from ‘StatOil’ and is diversifying into renewables. Orsted, previously a Danish oil and gas company, sold its fossil fuel portfolio. Repsol announced a net zero by 2050 target.”

Edward Mason, Head of Responsible Investment for the Commissioners, said:

“Exxon is continuing to misjudge the mood of investors on climate risk. The fact remains that Exxon still provides investors no assurance that it has a strategy consistent with the goals of the Paris Agreement. We co-filed the shareholder proposal filed by As You Sow because it asks Exxon to report clearly if, and how, it plans to align its operations and investments with the goal of restricting warming to well below 2 degrees Celsius and staving off catastrophic climate impacts. In 2019 Exxon and the SEC blocked our shareholder proposal asking Exxon to set Paris-aligned emissions reduction targets — this must not happen again. Exxon must cease lagging behind its peers on this issue. We call on Exxon not to block this resolution going to a vote in 2020.”

The Church Commissioners is leading the engagement by Climate Action 100+ with Exxon. Climate Action 100+ recently got a significant boost when BlackRock joined the group earlier this month.