– Who is responsible for capital markets emissions?
– Plan Vivo and Pivotal: high integrity biodiversity certificates
– Tesla’s charging network dominance faces growing rivals
Morgan Stanley, Barclays, Bank of America, Citigroup, HSBC, BNP Paribas, NatWest and Standard Chartered are working to develop global standards on accounting for carbon emissions in bond or stock sales and most have voted to exclude the majority of these emissions from their own carbon footprint. Banks with big capital markets operations in the working group argued that they should assume responsibility for only 33% of emissions resulting from activities financed through bonds and stock sales as they do not have the same control over borrowers when compared with loans. While the accounting standard will not be mandatory, the Partnership for Carbon Accounting Financials (PCAF), is seeking to harmonize carbon accounting across the industry.
Invert Insight:
Banks are already closely watched by investors, regulators and environmental advocates. If banks reduce their responsibility for carbon emissions generated by their capital market businesses, stakeholders might perceive them as not taking climate change seriously, as this could be seen as an avoidance of their responsibility for financing emissions-intensive activities.
The Plan Vivo Foundation, and biodiversity data startup Pivotal have partnered to deliver the first biodiversity certificates with high integrity impact for nature and communities. Certified projects will generate Plan Vivo Biodiversity Certificates using the Pivotal-for-PV Nature methodology and, unlike the VCM, these certificates are not targeted at an offset approach. Rather, in line with the Nature Positive movement, they are aimed at positively incentivizing landowners and communities to conserve and restore important habitats across the world that are critical for biodiversity and people to thrive.
Invert Insights:
Biodiversity certificates are an opportunity to scale investment in nature, aiming to close the financial gap for biodiversity conservation and to encourage local efforts to protect and restore nature. While the proposed methodology is not targeted at an offset approach, this certificate would instill additional confidence for carbon credit buyers interested in biodiversity conservation.
Seven automakers – BMW, GM, Honda, Hyunday, Kia, Mercedes-Benz Group, and Stellantis announced that they will form a new charging network. According to the group, this new network will be compatible with any battery-powered electric vehicles from any automaker, will offer amenities like food service and restrooms, and will be powered solely by renewable energy. This joint venture won’t affect current GM and Mercedes partnerships with Tesla. In contrast, Hyundai and Kia have been rumored to be discussing a similar deal with Tesla.
Invert Insights:
A widespread charging network makes EVs more attractive to potential buyers, incentivizing the transition from traditional-engine vehicles, dropping automakers’ reliance on fossil fuels.
According to the 2023 Gen Z and Millennial Survey by Deloitte, Gen Z and millennial employees believe their company has deprioritized sustainability, while business leaders indicated that their organizations have actually increased their sustainability investment over the past year. This disconnect suggests the need for organizations to better communicate their climate strategies and actively engage their employees.
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