9fin Featured Content

Telecom Italia — ESG QuickTake (9fin) - UPDATE (03/05/2023)

Telecom Italia (TIM) continues to reduce scope 1-3 emissions and increase renewable energy use in line with its 2025 renewable energy and 2030 emissions targets. In 2022, 9.6% of TIM’s capex and 4.4% of turnover were EU Taxonomy eligible, an increase from 2021. The group continues to be involved in multiple competition-related legal cases

Green Claims Directive — EU to cull consumer goods mislabelling mischief (9fin) (05/04/2023)

In 9fin’s latest ESG Educational we delve into the proposed EU Green Claims Directive and its implications for LevFin companies. The proposal would require all goods and services sold in the EU with environmental claims to be backed by science and undergo third-party verification. The Directive has the potential to impact a number of LevFin companies, including Hunkemoller, Armacell, Holland & Barrett, and Upfield

HY Company News

Drax's renewable status under threat as Ofgem probes greenwashing claim (06/04/2023)

UK energy regulator Ofgem is investigating claims of greenwashing by power generator Drax, which could lead to the removal of its project’s renewable status and prevent the firm from accessing government subsidies. The probe follows allegations of greenwashing after an investigation from the BBC’s Panorama revealed the firm was logging virgin forest in Canada. 

Germany starts fine proceedings against Twitter over user complaints (04/04/2023)

Germany's Federal Office of Justice has opened proceedings to fine Twitter after accusing the company of mishandling user complaints related to illegal content. The office of justice was informed of a number of instances in which “illegal” content was subject to user complaints that were not deleted by Twitter in compliance with German law. 

News Stories

Only 5% of FTSE 100 companies have ‘credible’ climate transition plans, says EY (03/04/2023)

According to EY, although 80% of FTSE 100 companies have set public targets to achieve net zero emissions, just 5% of FTSE 100 companies have published climate transition plans that are “credible” or sufficiently detailed. EY used the UK Transition Plan Taskforce’s (TPT) draft disclosure framework as a reference and found that companies performed worse in terms of disclosure on adaption business planning.

Investors welcome 'major step' of UK carbon markets regulation consultation (10/04/2023)

Earlier this year, the UK announced that it would launch a consultation on how to increase financing of voluntary carbon markets, whilst also preventing greenwashing. Investors have been supporting the government’s commitment to improve the state of the carbon market. Among the key topics set to be discussed in the consultation are the role regulators will play and the integration of carbon markets into the UK’s long-term climate transition strategy.

At Least 10,000 Foreign Companies to Be Hit by EU Sustainability Rules (05/04/2023)

Under the Corporate Sustainability Reporting Directive (CSRD), thousands of American, Canadian and British companies will be forced to improve their sustainability disclosures. The reporting directive will require companies to report on ESG metrics, such as greenhouse-gas emissions and gender pay gaps. Roughly one-third of US companies are likely to be impacted by the regulation.

Regulatory Round-up

Council and Parliament reach provisional deal on renewable energy directive (30/03/2023)

EU negotiators reached a provisional agreement on 30/03/2023 to increase the share of renewable energy in the EU’s overall energy consumption to 42.5% by 2030. Each member state will contribute to this common target. Negotiators also provisionally agreed on more ambitious sector-specific targets in transport, industry, buildings and district heating and cooling. 

European Green Deal: Agreement reached on cutting maritime transport emissions by promoting sustainable fuels for shipping (23/03/2023)

The EU has reached agreement on the FuelEU Maritime regulation to help decarbonise the maritime industry. Under the regulation, the EU will set maximum limits on the annual greenhouse gas intensity of the energy used by a ship. The limit will decrease over time to ensure the the greenhouse gas intensity of fuels used by the shipping sector gradually decreases, by 2% in 2025 to as much as 80% by 2050. 

Sustainable investment – EU environmental taxonomy (05/04/2023)

The EU released draft rules for the EU taxonomy which will be open for feedback for four-weeks (until 3 May). Notably, the EU has not included technical criteria for the forestry, agriculture and fishing sectors within the rules.