Thursday, 11 July 2024

Believing Climate Claims

 Well, well, well. Reposted from Edie:


Survey: Nine in ten Brits don’t trust climate claims from businesses

A quarter of the general public thinks that brands never provide accurate information on their climate impact, and most would like to stop supporting businesses enabling the spread of climate-related misinformation.

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Published 18th June 2024

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Survey: Nine in ten Brits don’t trust climate claims from businesses

These are key findings from a comprehensive survey of more than 1,000 adults in the UK, jointly conducted by marketing and advertising giant Dentsu and the Conscious Advertising Network (CAN). The results were published this week.

Survey participants were asked whether they trust businesses to follow science-based recommendations to reduce their climate impact and build climate resilience.

Only 12% said they think businesses always take this approach, while 14% think businesses never act in this way. The majority believe businesses only base climate targets and strategies on science some of the time, or when it suits them.

This is contributing to distrust in climate-related claims from businesses and brands. Just 9% of those surveyed trust brands to accurately portray their climate commitments and progress, thus avoiding greenwashing.

In comparison, one-quarter believe businesses are always greenwashing with their climate-related claims.

The survey found that most people do not want to support businesses which are deliberately greenwashing, or otherwise supporting the spread of climate-related misinformation and disinformation. 45% said they would stop buying from, or otherwise supporting, businesses accused of funding climate disinformation. And one-fifth would stop using a digital platform, like a social media app, if it failed to stop the proliferation of falsehoods on climate.

CAN co-founder Jake Dubbins said: “Businesses need to recognise that association with climate disinformation not only undermines their credibility and reputation but also jeopardises their long-term viability in a world increasingly focused on sustainability.

“By actively distancing themselves from disinformation and ensuring messaging aligns with climate science, companies can contribute to a more informed public discourse, bolster consumer trust, and safeguard their future in a changing economic and environmental landscape.”

Net-zero confusion

Nonetheless, the survey also revealed that most people are at least somewhat susceptible to climate misinformation and disinformation. Eight in ten of those surveyed believed at least one of these falsehoods:

  • Climate change is either not happening, or not primarily caused by human actions
  • Reaching net-zero by 2050 would be unaffordable for the UK
  • Net-zero and climate policies will increase poverty and unemployment
  • Rapid decarbonisation is not needed to ensure the prosperity and welfare of the global population
  • Reducing emissions is a form of ‘self-inflicted harm’ that punishes citizens
  • We have already passed the threshold where climate change is irreversible, and there is no point taking action
  • The electricity grid will never be able to handle increased electric vehicle uptake

Belief in these statements was found to be higher among men than women. Millennials were the most susceptible generation.

The most commonly perception across all demographics– believed by three-quarters of the total survey base – is that the transition to net-zero is unaffordable.

The Climate Change Committee (CCC) has estimated the net cost of the transition at 0.5% to 1% of GDP per year, with the cost of inaction or a disjointed and disorderly transition being far higher. The Office for Budget Responsibility has also reached the conclusion that adapting will be more expensive and result in more economic risk.

Fears around the cost of the transition have been stoked by the Conservative Party and Reform UK ahead of next month’s general election.

Reform UK is the only party with a commitment to scrap the UK’s legally binding net-zero target altogether. It would also axe a range of supporting policies including subsidies for renewable energy, the ban on fracking and requirements for automakers to transition to electric.

The Conservatives would keep the 2050 net-zero target but have made several changes to the delivery strategy in recent months, against the advice of the CCC, in the name of reducing costs on households. Party Leader Rishi Sunak has watered down key policies relating to low-carbon heating, building energy efficiency and electric transport, while forging ahead with oil and gas expansion in the North Sea.

Festival Tent Buy-Back Scheme

 It always amazes me how many people just abandon their festival tents. Reposted from Edie:


Decathlon launches buy-back scheme for tents to tackle music festival waste

Decathlon is incentivising customers not to bin or abandon their tents this festival season, offering a full refund for popular tent models as part of a buy-back scheme.

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Published 5th June 2024

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Decathlon launches buy-back scheme for tents to tackle music festival waste

DJ and presenter Jo Whiley is supporting the initiative. Image: Decathlon.

The aim of the retailer’s ‘No Tent Let Behind’ scheme is to stop festival-goers and campers from discarding their tents after one use. Despite actions from campsites and festival organisers to address the issue, some 250,000 tents go to landfill in the UK each year after summer.

This is equivalent to around 10kg of tent waste for every festival-goer.

Decathlon’s scheme will be available to customers in the UK and covers ten of the most popular tent models.

Under the scheme, customers have until 13 September to bring their eligible tents back to Decathlon stores for trade-in. They will receive a gift card amounting to the full amount they spent on the tent in the first instance, regardless of wear and tear.

The tents will be refurbished, cleaned and resold via Decathlon’s ‘Second Life’ resale platform. The platform initially launched in the UK last year for own-brand bicycles and was expanded this spring to cover a range of camping gear and fitness equipment including golf clubs, tennis rackets and paddleboards.

Decathlon UK’s sustainability leader Chris Allen said: ”We’re relaunching the ‘No Tent Left Behind’ campaign with the biggest Tent Pledge following the success of last year.

“100% of the tents returned in 2023 were refurbished and resold through Decathlon’s Second Life scheme. We want to make an even bigger impact and encourage our customers to choose sustainable habits whilst they’re enjoying themselves. We continue our commitment to reducing our environmental impact and hope our customers will be inspired to do the same.”

Scaling up circular business models is a core pillar of Decathlon’s environmental sustainability strategy, along with increasing product repairability and durability; enhancing traceability and cutting emissions in line with verified science-based targets.

The business is aiming to expand its buy-back offering to more than 100 types of products by 2026. By this point, it is striving to have facilitated the repurchase of 800,000 items.

Decathlon also offers repair and DIY workshops and services, plus rental across several product categories including bikes, tents and skiing equipment.

FCA Ani-Greenwash Rules

 About time. Reposted from Edie:


‘A great step in the right direction’: FCA’s anti-greenwash rules enter into force

New anti-greenwash guidelines and standards for asset managers from the UK’s Financial Conduct Authority (FCA) are now in force.

Published 31st May 2024

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‘A great step in the right direction’: FCA’s anti-greenwash rules enter into force

Nearly 60 banks collectively provided $705.8bn to firms involved in in the fossil fuel sector last year.

Late last year, the FCA confirmed plans to introduce new measures to prevent asset managers from misleading investors about the environmental and social impacts of their funds.

Today (31 May), these anti-greenwashing rules have come into force.

Asset managers will now be required to adhere to the new Sustainability Disclosure Requirements (SDR) rules. These rules prohibit vague references to ‘sustainability’, ‘ESG’, or related terms in fund marketing. Instead, asset managers will be required to provide “clear, complete” information and select one of four specific fund labels.

The labels are ‘Sustainability Focus’, ‘Sustainability Improvers’, ‘Sustainability Impact’ and ‘Sustainability Mixed Goals’.

Asset managers will need to demonstrate that at least 70% of the fund’s assets support the chosen label.

Moreover, firms will be required to provide consumer-facing disclosures about a fund’s sustainability activities; offer detailed pre-contractual and ongoing disclosures at both entity and product levels for labelled or sustainability-referenced products; adhere to naming and marketing rules that restrict the use of certain sustainability terms to ensure accurate claims;and comply with additional rules for UK distributors, including the provision of product-level information.

Looking forward, the FCA is also consulting on extending SDR to portfolio managers. The proposed labelling and SDR for portfolio managers includes ensuring that product labels are accurate to help consumers understand what their money is being used for, and introducing marketing requirements to ensure that environmental claims are backed up.

Implementation guidance

The FCA issued new guidance last month to help the industry meet these new standards. Guidance includes good and poor practice examples of greenwashing to help firms implement the rule.

Furthermore, the UK Sustainable Investment and Finance Association (UKSIF) and PwC have released an implementation roadmap to help financial firms navigate the challenges of complying with the new SDR guidelines. The ten recommendations include:

  • Carefully choose product labels under the SDR, balancing commercial benefits and stakeholder expectations.
  • Ensure compliance with the 70% sustainability threshold for labelled funds.
  • Create a firm-wide product classification framework for SDR and international regulatory coherence.
  • Engage early with distributors to align on product sustainability features and labels.
  • Conduct a comprehensive greenwashing review firm-wide.
  • Develop an internal taxonomy to identify and prevent greenwashing.
  • Focus sustainability reporting on what is most relevant to the business and clients.
  • Streamline data collection and integrate existing reporting processes.
  • Align reporting cycles with TCFD reporting when possible.
  • Adopt a strategic, long-term approach to reporting for organisational value.

UKSIF’s chief executive James Alexander said: “This regulation can empower our members to better demonstrate and evidence their sustainable investment approaches and strategies in an environment where consumers are increasingly looking to put their money into funds that more closely align with their values.

“We are committed to supporting our members to take full advantage of the opportunities of the FCA’s SDR and help guide them through this first crucial year of implementation.”

The investor community has welcomed the FCA’s new SDR guidelines, with some calling it “a great step in the right direction.”

Industry reaction

Carla Nunes, managing director, Kroll:

“This FCA rule is a great step towards the protection of investors, and in particular retail investors who may not have the necessary knowledge to ascertain whether certain claims by investor managers are being misleading.

“The transition of the global economy into a more sustainable world will require massive investments towards the green energy transition.

“If investor confidence in products designed to finance such a transition is shaken or put into question, capital allocation into those products will suffer. That, in turn, may have negative consequences for the planet overall and its people so this ruling is a great step in the right direction.”

Angela Hultberg, global sustainability director, Kearney:

“As consumers become more environmentally conscious, there is a growing temptation for companies to make misleading claims about their ESG credentials and engage in rhetoric that exaggerates their actual impact.

“It’s high time firms moved beyond merely making their products and services sound environmentally friendly to genuinely creating sustainable solutions.

“Under the new guidance, companies will have to make evidence-based product labels that clearly explain to consumers what their money is being used for. This will build further trust with consumers, allowing them to make more informed choices, and to have a genuinely positive impact on our planet.”

Richard Weighell, financial services advisory partner, BDO LLP:

“While the final guidance was only published last month, firms have had a significant amount of time to prepare for the introduction of the FCA’s anti-greenwashing rule.

“By now, they should have substantially completed their programmes of work to ensure sustainability-related claims in their communications are clear, fair and not misleading.

“Given the long lead time ahead of the introduction of the rules, we expect the FCA to immediately be monitoring firms.”

Paul Hamalainen, global sustainable finance and UK prudential policies director, Mazars:

“As the anti-greenwashing rule comes into force [today] it is good that the FCA has supplemented the rule with guidance on regulatory expectations and examples of good and bad practices.

“Now it is down to companies to undertake a drains-up assessment of their sustainability practices and promises to ensure they are operating in accordance with the guidelines and the requirements for public disclosure. Firms shouldn’t underestimate how long this could take.”

Ruth Knox, global co-chair of the ESG & sustainable finance practice, Paul Hastings:

“Today the FCA’s anti-greenwashing rule comes into effect, with the purpose of ensuring sustainability claims are fair, clear and not-misleading.

“While there has historically been some confusion on whether anti-greenwashing guidance emanating from the FCA extends beyond retail, new guidance is very clear, and clearly addresses market feedback on the difficulty of labelling products – as a result, we can expect the FCA to be steadfast in upholding the rule moving forward.