As the fourth negotiating round of the global plastic treaty approaches, what should financial institutions be looking out for? There are five main considerations: are upstream petrochemical producers in scope; Will hazardous chemicals be called out; Will there be product restrictions? Who will finance the transition? Will the final treaty text be mandatory or voluntary? The implications for the financial markets could be significant.

The US Environmental Protection Agency (EPA) issued its Final Rule for Synthetic Organic Chemical Manufacturing Plants & Polymers & Resins. The aim of this rule is to reduce cancer and serious health effects from toxic air pollutants and smog-forming compounds. This is relevant to financial markets which are seeing externalities being converted into internal costs for corporates. Financial models may need reassessing.

Listen to Planet Tracker’s Filippo Grassi on the #FixedOnESGPodcast for a conversation on measuring and investing in nature and biodiversity with Alistair Shepheard-Walwyn, ESG Specialist.

In this episode of Unplugged, Robin Millington, CEO of Planet Tracker, addresses the urgency of environmental challenges and the need for action.

Legislative time is running short before the European Parliamentary elections on 6-9 June 2024. Corporates and investors should watch this pre-election period with considerable interest. European legislators are working on a range of regulations to finalise their adoption at the final Parliament Plenary sessions this month. These range from nature restoration and anti-greenwashing requirements, to waste & packaging and supply chain due diligence controls.

Unilever’s 2024 Climate Transition Action Plan (CTAP) aims for alignment with global climate targets, focusing on the 1.5°C pathway of the Paris Agreement.
Planet Tracker’s evaluation highlights Unilever’s revised targets and strategies for mitigating climate change impacts, noting the plan as a significant step forward.
However, Planet Tracker suggests more detailed financial disclosure to link investments to outcomes and clearer explanations of financial forecasts for investor understanding.

Major fashion brands and retailers are facing significant water-related risks, a new report from Planet Tracker reveals. With water stress on the rise in key manufacturing regions, this report urges companies and investors to prioritise water risk management for long-term sustainability. Financial institutions engage with companies to disclose water usage and risks while supporting strategies to mitigate these risks.

Planet Tracker’s interactive dashboard allows the user to evaluate the level of water stress a brand’s apparel suppliers face. This is possible based on present data and a forecast for 2050.

London 25 March 2024 – Planet Tracker has released a groundbreaking report uncovering the significant water-related risks faced by major fashion brands and retailers, including Adidas (ADS.GR), Gap (GPS.US), H&M (HMB.SS), Inditex (ITX.SM), Levi Strauss (LEVI.US), Nike (NKE.US), PVH Corp (PVH.US), Ralph Lauren (RL.US) and VF Corp (VFC.US).

The TNFD issued its final recommendation on nature-related financial disclosures in September 2023. Even the earliest TNFD adopters will not have to publish such disclosures until 2025, for the 2024 financial year. However, companies can no longer claim they lack guidance on nature reporting. Investor initiatives such as the Nature Action 100 and PRI Spring Initiative provide significant opportunities for financial institutions to press companies for progress.