The Week in Sustainability x ESG Talk

September 16–20, 2024

This week:

In the fourth and final episode of the ESG Talk Climate Week series, Nancy Mahon, chief sustainability officer of the Estée Lauder Companies, joins host Alyssa Zucker to discuss the company’s approach to Scope 3 measurement and reporting. They cover the impact of consumer sustainability preferences and the unique challenges of leading sustainability efforts across a diverse portfolio of brands.

In the third installment of ESG Talk’s Climate Week series, Frank Koch, CEO of Swiss Steel Group, and Alberto Carrillo Pineda, CTO of the Science Based Targets initiative (SBTi), join Mandi McReynolds to discuss long-term decarbonization strategies, the steel industry's commitment to sustainable production, and the importance of full emissions transparency.

In the second episode of the ESG Talk Climate Week series, Amelia DeLuca, Delta Air Lines’ chief sustainability officer, speaks with Andie Wood about Delta Air Lines’ strategies for reducing its direct carbon emissions and efforts to increase sustainable aviation fuel production within the airline industry.

In this special Climate Week episode, ESG Talk and The Week in Sustainability team up to demystify greenhouse gas emissions. Join us as hosts Steve Soter, Andie Wood, and Alyssa Zucker kick off a four-part series focused on practical solutions for carbon accounting, management, and achieving net-zero goals.

This week:

– Recent extreme weather events in North America underscore the growing need for cities to adopt robust climate resilience strategies, including infrastructure upgrades and comprehensive climate risk assessments.

–Attribution science is increasingly vital in understanding how climate change amplifies the severity of weather events, guiding policymakers to implement more effective mitigation and adaptation measures.

This week:

– Shift in power dynamics: The Supreme Court's decision to overturn the Chevron Doctrine significantly alters the balance of power between federal agencies and the judiciary, granting courts more authority to interpret laws and potentially limiting the ability of agencies like the EPA and SEC to enact and enforce climate-related regulations without explicit congressional authorization.

– Impact on climate policy: This ruling presents challenges for federal agencies, as it may lead to regulatory rollbacks and increased legal battles over climate policies. The decision could slow progress on environmental regulations and require Congress to pass more explicit legislation to empower agencies to address complex issues like climate change.

– Biden’s climate legacy: President Biden’s administration has invested $4.3 billion in EPA grants to combat climate change, reduce pollution, and promote environmental justice, alongside significant climate legislation like the Inflation Reduction Act. However, his policies, including the approval of the Willow oil drilling project, reflect a complex balance between advancing clean energy and making concessions to fossil fuel interests.

– Harris’s potential impact: Vice President Kamala Harris, with a strong history in climate action and environmental justice, is poised to build on Biden’s climate legacy if she becomes the Democratic nominee. Her challenge will be distinguishing herself from Biden, particularly on controversial issues like the Willow project, while accelerating the transition to clean energy.

Significant impact: Scope 3 emissions in supply chains are 26 times higher than direct operational emissions, highlighting the need for companies to address upstream emissions alongside Scopes 1 and 2.

– Challenges and gaps: Only 15% of companies have set targets for upstream Scope 3 emissions due to complexities in data collection, lack of supply chain transparency, and prioritization of direct emissions.

– Key actions for improvement: The report suggests three critical factors for addressing Scope 3 emissions: having a climate-responsible board, engaging suppliers for transparency and emission reductions, and adopting internal carbon pricing to incentivize low-carbon practices.

This week:

–Kern County wildfires: Recent wildfires in Kern County caused major evacuations and extensive damage, highlighting the urgent need for climate action as extreme heat and dry conditions fuel more frequent and severe fires.

–Climate regulation landscape: The SEC’s new climate-risk disclosure rule aims to standardize ESG reporting despite legal challenges. Companies must proactively address regulations and prepare for complex reporting, including Scope 3 emissions.