Editor’s note: poverty relief and climate action

The latest edition of our Sustainable Views newsletter

Dear reader,

Poverty and social exclusion are the key issues on which EU citizens say potential MEPs should campaign ahead of the June European parliament elections, shows the latest EU survey. Thirty-three per cent of respondents cite poverty and social exclusion as their top concern, followed by public health (32 per cent), with the economy and new jobs, and defence and security (both at 31 per cent) in third place. Only 27 per cent say climate change should be the main focus for electoral campaigns. However, climate action can be an important driver for tackling all these issues and failure to reduce emissions is likely to worsen them. 

Numerous studies show measures to transition to a greener, more sustainable economy can, if done correctly, reduce inequalities, create jobs, boost energy and food security, lessen the threats to public health, and reduce the risks of conflict.  

The impact investing manifesto discussed in yesterday’s missive suggests setting aside 10 per cent of EU public funding to “more effectively ensure a just transition to a low-carbon economy”. It gives “energy efficient homes in vulnerable communities” as an example of climate action supporting public health and the fight against poverty. In the latest polling from The Yale Program on Climate Change Communication, 57 per cent of registered US voters say the clean energy industry will create more good jobs than the fossil fuel industry. 

Aligning ready-made meals with sustainability standards, including reducing the amount of meat in them and replacing it with legumes and vegetables, would reduce EU emissions by around 48mn tonnes a year — equivalent to removing 38mn new cars — and improve people’s health, shows a study commissioned by nonprofits Madre Brava and Fern. 

Meanwhile, analysis from the non-profit World Resources Institute concludes “better” meat, from organic or grass-fed cows, often has a higher environmental footprint than its conventionally produced equivalent. The conclusion? Food companies should better measure emissions and purchase less meat to bring down emissions and meet ESG targets. 

On a global level, as the World Bank and the International Monetary Fund hold their annual spring meetings in Washington, pressure is growing for a financial system that delivers on climate action and poverty. In a letter sent to G20 leaders, former politicians, business leaders, academics and activists — including former head of the UN climate change body Christiana Figueres, former Unilever CEO Paul Polman and economics professor Mariana Mazzucato — call for “another Bretton Woods moment”. 

They underline the urgent need to “unlock colossal public and private investment” for renewable energy, sustainable agriculture and climate adaptation, reform tax regimes “that give polluters impunity” and remove the debt stopping poorer countries from meeting the UN sustainable development goals.

Deforestation accounts for 11 per cent of emissions globally. “If it were a country, it would be the third highest emitter in the world,” says Freya Bannochie from the non-profit Global Canopy. Florence examines how innovative financing solutions can help tackle climate change, biodiversity loss and inequality. “We often say deforestation is a symptom of farmer poverty,” says Carole Mitchell from non-profit Mighty Earth. Increasing financing to communities impacted by deforestation will “bring social benefits and a positive impact on deforestation,” she says.

In other news, despite the EU’s Corporate Sustainability Due Diligence Directive having been watered down, a survey by DWF suggests most companies will not be compliant with the legislation in the near future. Nonetheless, the law firm’s head of sustainable business and ESG Tracey Groves insists “unified mandatory regulation” is the way forward.

Data continues to be an issue for ESG compliance. The CFA Institute is the latest body to spotlight the issue. Accessing “comprehensive, reliable and comparable climate-related company data” is made difficult by a lack of rules governing climate-related disclosures in many jurisdictions, it says, also underlining the deficiencies of some data providers and their lack of coverage of smaller businesses and of companies domiciled in emerging markets. 

Until tomorrow,

Philippa

Philippa Nuttall is the editor of Sustainable Views