Welcome to the first NewGround Law ESG weekly NEWsletter.
At NewGround Law, we recognise the importance of Environmental, Social and Governance (ESG), both to our firm and our clients. We are not the only ones who think this. The values and principles relating to the three aspects of ESG are already significantly altering capital flows, stakeholder engagement as well as national and international regulation. We vow to stay ahead of these trends. We believe that doing so will place us in an optimum position to capitalise on these changes as they materialise.Hence, the experts at NewGround Law have created a weekly newsletter to help those around us stay on top of the key developments shaping the ESG landscape across
The
The cities will receive funding from the Horizon Europe programme. Created under Regulation 2018/0224, the programme aims to tackle global issues through financing research and innovation.3 Between 2021-2027, Horizon has a budget of ?95.5 billion; 35% of this has been allocated to tackle issues surrounding sustainability and climate change.
Participating cities will benefit from tailor-made advice and assistance from a dedicated Mission Platform run by NetZeroCities, additional funding, networking opportunities and financing opportunities and the possibility to join large innovation actions and pilot projects. Given that 377 cities originally showed interest in the project, the commission also announced that it would put support in place for the cities which were not selected.
The next steps for the mission are for the participating cities to develop 'Climate City Contracts' which they will be able to communicate with authorities and potential stakeholders by the end of 2022. This will include an overall plan for climate neutrality across all sectors such as energy, buildings, waste management and transport, together with related investment plans. Stakeholders who are impacted by the project, or may even wish to contribute to it, should remain informed with updates from national and local governments.
Shell Triples Renewable Energy Capacity through Acquisition of
Over the past year, Shell has been under increasing pressure from a range of stakeholders to increase its environmental commitments. Most notably, in May last year, Shell was ordered by
External groups are not the only ones pushing Shell to increase its environmental commitments. Shell is also under significant pressure from its own shareholders. Next month, on
While the purchase of Solenergi is a step in the right direction for Shell, further expansion of its renewable capacity - whether it be through internal investment and/or further M&A activity - and reduction of its fossil fuels business, will be required if the company is to reach its legally binding 2030 target.
The global consumer brands giant
Commitments like these are an essential element of the 'S' aspect of ESG. It demonstrates that companies are both aware of the fluctuating social and political environment that their key stakeholders exist within but also that they are prepared to adapt their strategy to accommodate this. In the present case,
Relief for
Arguably one of the biggest stories from the EU last week has caused widespread optimism for the ESG community.
Many in the ESG community have expressed their relief from the results. This is a consequence of the two candidates contrasting environmental policies and in in particular, their approach towards the energy transition. In the only televised TV debate before the election, Macron promised to go 'twice as fast' to tackle GHG emissions. On the other hand, Le Pen wants the rate of transition to be reduced as she fears it is having overly restrictive consequences for the French public.8
Perhaps the most concerning aspect of Le Pen's climate plan, from a European perspective, is her wish to withdraw
Macron's current government has also made some progress in the field of national sustainable finance. For example, Article 29 of
One must, however, be cautiously optimistic about Macron's success. Just last year, a court found his government guilty of failing to meet their own commitments to reduce GHG emissions under the
Footnotes
1 https://ec.europa.eu/commission/presscorner/detail/en/IP_22_2591
2 https://www.euractiv.ro/documente/ec_rtd_he-cities-mission-meet-the-cities-factsheet.pdf
3 https://ec.europa.eu/info/research-and-innovation/funding/funding-opportunities/funding-programmes-and-open-calls/horizon-europe_en#:~:text=What%20is%20Horizon%20Europe%3F,the%20EU's%20competitiveness%20and%20growth.
4 https://www.shell.com/media/news-and-media-releases/2022/shell-to-acquire-sprng-energy-group-one-of-indias-leading-renewable-power-platforms.html
5 https://www.clientearth.org/latest/latest-updates/news/we-re-taking-legal-action-against-shell-s-board-for-mismanaging-climate-risk/
6 https://www.cityam.com/shell-urges-shareholders-to-reject-activist-calls-for-more-stringent-climate-change-targets/
7 https://www.unilever.com/news/news-search/2022/championing-global-commitments-that-ensure-no-food-marketing-to-under16s/
8 https://www.lemonde.fr/en/2022-presidential-election/article/2022/04/21/macron-and-le-pen-lay-out-starkly-different-visions-on-climate-change_5981229_16.html
9 https://www.iflr.com/article/b1xt4k45509j3p/france-leading-the-way-on-europes-esg-regulation
10 https://www.euronews.com/green/2022/04/21/how-france-s-environmental-policies-could-change-after-this-weekend-s-elections
11 https://reseauactionclimat.org/presidentielle-candidats-climat/
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Mr
Gustav Mahlerplein 27
Symphony Offices, 5th Floor
1082 MS
Tel: 85808 13 00
URL: www.newgroundlaw.com
© Mondaq Ltd, 2022 - Tel. +44 (0)20 8544 8300 - http://www.mondaq.com, source