Our full top trends for the 2023 report can be found here.
Source: Procurement Magazine
Greenwashing, sportswashing, and corporate virtue signalling are all on the upswing. Sensu reports that over 2022, the global profile for these phrases has climbed by 46%, while media mentions have increased by 68%. While some organisations may aim to avoid ESG communications (a practice known as "greenhushing") there is unavoidable pressure to explain and justify ESG credentials from investors, consumers, employees, and the media.[i] Sensu undertook a survey published at the very beginning of 2023 that sought to gather the public's thoughts on such topics. 93% of those polled claimed to have recently witnessed something that, in their opinion, was an instance of greenwashing. The most frequent criticism was that there were no data or figures to support assertions that a good or service was "eco-friendly," "sustainable," or something similar. According to one-fourth of respondents, concerns over greenwashing have caused them to spend less with certain businesses or brands in recent months. Over one-third (30%) of individuals polled stated that they anticipate the majority of environmental promises made by brands and companies to be "somewhat exaggerated". Furthermore, 71% believe that it is likely that most claims are not independently verified. These perceptions weaken the perceived credibility of claims.[ii]
In a further study of 2,010 people also looking at attitudes to greenwashing, 75% stated they supported tougher sanctions for businesses that were deemed to be "greenwashing," 77% said that companies prioritise profits over the environmental impact of their products, and 60% agreed that senior executives should go to jail for environmental crimes. The dieselgate scandal was the first time for half of those polled that they realised companies were deliberately using greenwashing to deceive customers. Meanwhile, 70% of respondents claimed that, as a result, they no longer believe what businesses claim to be doing in terms of sustainability and environmental obligations.[iii]
Regulators are also applying pressure. For example, in February of 2023, the UK's advertising watchdog, the Advertising Standards Authority (ASA), announced the release of amended guidelines for advertisers using the terms "carbon neutral" and "net zero" when making environmental sustainability-related claims to consumers. The ASA explained that the revised guidance incorporates "key principles of the Competition and Markets Authority's guidance on environmental claims on goods and services" and that "in light of the low understanding and lack of consensus around the meaning of carbon neutral and net zero claims, the Committees of Advertising Practice and the Broadcast Committee of Advertising Practice advise advertisers to take into account the following guidance, which draws on key principles of the Competition and Markets Authority's guidance on environmental claims on goods and services.".[iv]
Source: Forbes
The Inflation Reduction Act increased funding for the Qualifying Advanced Energy Project Credit programme by $10 billion. Congress mandated that at least $4 billion be set aside for projects in communities with closed coal mines or retired coal-fired power plants in the Inflation Reduction Act. The initial funding round announced in February 2023 will total $4 billion, with approximately $1.6 billion set aside for projects in coal communities. On May 31, 2023, the application process for the Qualifying Advanced Energy Project Credit programme will begin.[v] The Advanced Energy Project Credit, initially introduced by the American Recovery and Reinvestment Act of 2009, grants eligible advanced energy projects an investment tax credit of up to 30%. By allocating an additional $10 billion in tax credits for both expanding American manufacturing capacity and, for the first time, supporting investments that lower greenhouse gas emissions from industrial facilities, the Inflation Reduction Act considerably extended the programme. Eligible projects include those that would enable the production or recycling of specific energy properties, such as wind turbines, solar panels, heat pumps, batteries, and electric vehicle components; projects that would result in the processing, refining, or recycling of critical materials, including critical minerals critical to advancing US energy security; and projects that would re-equip industrial or manufacturing facilities to reduce emissions by at least 20 per cent.[vi] As the investment promised by the Biden administration is not yet flowing, the zero carbon space will watch with a keen eye to see how promises turn to action.
As ZCA have covered previously, the inflation reduction act has been seen as the starting pistol for a global race towards the technology required for a cleaner future. Cleantech for UK is an initiative aimed at fostering a new generation of global cleantech champions in the United Kingdom. For the launch event, Prime Minister Rishi Sunak, Bill Gates, and three leading UK cleantech companies joined the founding coalition members, who discussed how they hoped the UK could lead the world in pioneering clean solutions on the path to net-zero emissions. Six accelerators, venture capital firms, growth investors, and alternative asset platforms with combined funds of more than £6 billion comprise the founding coalition. Cleantech Group is organising the initiative, supported by Bill Gates' Breakthrough Energy.[vii]
Source: BBC
Next month, tens of thousands of people are expected to assemble in front of the Houses of Parliament in London to demonstrate against the UK government's inaction on the climate crisis and other related crises. Extinction Rebellion (XR) members will participate in "The Big One," a four-day rally beginning on April 21, where they will be joined by medical professionals and anti-racism activists. Extinction Rebellion has conducted some internal reflection since making its global debut a few years ago. The protest organisation known for its disruptive methods declared in a New Year's statement headlined "We Quit" that it would now "prioritise attendance over arrest and relationships over roadblocks.".[viii] This change in tactic is in agreement with the impact of the radical flank effect (as discussed in the wider 2023 trends report). As a result, there will be huge attention from policymakers, businesses and the public as to quite how big ‘the big one’ is.
Source: The Nation
At the COP27 in Egypt last year, significant advances were made in the areas of loss, damage, and adaptation. But, the new 2023 IPCC assessment warns that more has to be done to "close the gap" between what has already been accomplished and what is needed to adapt to the climate issue. According to the IPCC, many climate solutions fall under the umbrella of "resilient development," and nations, regions, and organisations must "integrate measures" to cope with the effects of climate change while also reducing emissions and bringing about broader positive effects like improved air quality and healthier communities.[ix]
Initiatives addressing adaptation have gathered pace in 2023. In order to help EU regions, cities, and local governments become more resilient to the effects of climate change, the Mission on Adaptation to Climate Change (put forward by the EU) focuses on supporting these efforts. The Mission contributes to the implementation of the EU's adaptation plan by assisting the regions in better understanding the climate risks they are and will be faced with in the future, developing their paths to be better prepared and able to cope with the changing climate testing, and deploying innovative solutions needed to create resilience on the ground. The Mission's goal is to assist at least 150 European towns and regions in achieving climate resilience by 2030.[x] Involved authorities made it clear by signing the Charter that they wish to work together, mobilise resources, and create initiatives to achieve their climate adaptation goals. 284 of the 301 authorities are from the 25 EU countries, while there are 17 more parties from non-EU nations. The Mission Adaptation is providing 370 million euros in financing from Horizon Europe for projects between 2021 and 2023. The research and innovation projects will contribute to our understanding of how to better rebuild areas affected by extreme weather events, establish floodplains, as well as investigate types of farming that are climate resilient and prototype insurance approaches, or design a "perfectly adapted" city prepared to withstand flooding or heatwaves.[xi]
Source: OECD
The first point of interest for inclusive action relates to ensuring that a transition does not worsen the economic conditions faced by the public. This was a contributing cause for the conduction of the UK’s net zero review. The review found that locally, the UK government's present net zero delivery strategy results in inefficiencies. It comments that local leaders are frequently more equipped to deliver locally specific net zero interventions, engage with communities and businesses on net zero, and comprehend the opportunities and problems their regions face in moving towards net zero. Yet, they are now dealing with a lack of definition of their role, a fragmented and short-term funding strategy and more assistance is needed to develop the capacity and aptitude required locally to accomplish a successful transition.[xii] Shifting focus towards a more effective approach at a local level could be the key to ensuring that voices predominantly absent from climate crisis discussions find their place within them.
There have also been developments with climate inclusivity at a global level. Through evidence-based mutual learning and inclusive multilateral conversation, the Inclusive Forum on Carbon Mitigation Approaches (IFCMA) programme aims to enhance the global effect of carbon reduction activities around the globe. It brings together pertinent policy viewpoints from various nations, with participation on an equal footing, to assess and weigh the efficacy of various carbon reduction strategies. A variety of advanced, rising, and developing economies gathered for the IFCMA's inaugural meeting on February 9–10 to design the effort and debate methods for assessing the many carbon mitigation measures already in place, as well as taking into account their total impact on world emissions. As an OECD initiative, the event brought together parties that collectively represent more than 90% of global GDP and 85% of global emissions.[xiii]
[i] Sensu- 50 shades of greenwashing: Public Suspicion & Corporate Ethics
[ii] Ibid
[iii] Leigh Day- Survey finds consumers want harsher penalties for businesses caught greenwashing
[iv] Lexology- UK’s Advertising Regulator Publishes Rules on Making Carbon Neutral and Net-Zero Claims
[v] US Department of the Treasury- Treasury, Energy Release Guidance on Inflation Reduction Act Programs to Incentivize Investments in Underserved Communities, Hard-Hit Coal Communities
[vi] The White House- Treasury Issues New Guidance to Unleash Clean Energy Manufacturing
[vii] Cleantech for UK- Rishi Sunak & Bill Gates attend Cleantech for UK launch event with leading cleantech start-ups, accelerators and investors
[viii] Euronews- ‘The Big One’: Why are Extinction Rebellion, NGOs and NHS workers gathering outside UK Parliament?
[ix] Edie- From finance to adaptation: Five ways the IPCC report could impact businesses
[x] European Commission- EU Mission: Adaptation to Climate Change
[xi] European Commission- EU Mission Adaptation signatories now number over 300
[xii] Mission Zero- Independent review of net zero
[xiii] OECD- New OECD Forum to help optimise global emissions reductions through data sharing, mutual learning and dialogue
Oscar is a recent graduate with a background in earth science. He is currently studying an MSc focussing on disaster responses, emergency planning and community resilience. His postgraduate research project will assess the link between climate crisis risk perception and attitudes to green energy projects. “Adapting to the climate crisis through the pursuit of net zero requires community engagement and understanding. Zero Carbon Academy’s goals closely align with this approach and I’m excited to have the opportunity to research and communicate a variety of topics relating to our environment and sustainability”.
