Global ESG Update

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20 airlines make climate commitments

Twenty of the World Economic Forum’s Target True Zero airline members have committed to using new technologies such as electric, hydrogen and hybrid aircraft to tackle climate change. Novel propulsion technologies powered by sustainable energy sources were noted as key factors to help the aviation industry make important changes.

Industry leaders are aiming for 30 per cent of aircraft on short-haul routes added to fleets from 2030 onwards being power by hydrogen and electric power. Airlines are calling on governments to support electric and hydrogen aircraft to eliminate in-flight emissions and reduce climate impacts.

Signatory airlines include Aero, Air New Zealand, Air Nostrum, Alaska Airlines, Amelia, ASL Aviation Holdings, Braathens Regional Airlines, easyJet, Finistair, Icelandair, Iskwew Air, Loganair, Mokulele, Ravn Alaska, SoundsAir, Southern Airways Express, Surf Air Mobility, Viva Aerobus, Waltzing Matilda Aviation, Xwing. These airlines operate over 800 aircraft and carry over 177 million passengers on 1.8 million flights a year.

Commitments include:

  • Focus first on short-haul flights (under 750km)

  • Once technology is improved, decarbonise longer-range aircraft

  • Aerospace manufacturers should innovate to allow these goals to be met

  • Governments should support the aviation industry transition to clean energy

Read more about the Targeting True Zero Initiative and the World Economic Forum’s Aerospace Industry Agenda

IOSCO urging oversight of ESG ratings and data product providers

The International Organisation of Securities Commissions (IOSCO) has made some recommendations for ESG ratings and data product providers. ESG ratings and third-party data products are playing an important role in the ESG ecosystem, particularly in the absence of comparable/consistent issuer disclosures. IOSCO is urging global financial regulators to focus greater attention on the use of ESG ratings and data products, examining the activities of ESG ratings and product providers.

IOSCO set out recommendations for consideration when developing frameworks. Recommendations include promoting transparency in methodologies for ESG ratings and data product providers when developing products. Procedures for managing conflicts of interest must be appropriate and improve communication between providers.

Six new countries join alliance to ban new oil and gas drilling projects

A new international alliance, Beyond Oil and Gas Alliance, has set out to ban new oil and gas drilling projects gained six members recently during the United Nations climate conference. Unsurprisingly there was no support offered from any major fossil fuel producers.

The six new signatories are France, Greenland, Ireland, Sweden, Wales and the Canadian province of Quebec. The alliance was set up by Denmark and Costa Rica in September. Notably none of the members who are pleding to stop providing drilling permits has substantial production of oil and gas in their jurisdictions.