The Upside - Issue 28
Justice for Michael Mann, a new direction for Barclays and Ikea showing that business growth and sustainability can be compatible.
Barclays end all financing of new oil & gas
Last week Barclays announced a new climate change strategy that includes ending all financing of new oil & gas projects. Barclays has historically been the largest contributor to new oil & gas, so this announcement marks a huge change in direction, and with its influence & reputation, the impact of this shift will spread throughout the banking industry. Their new policy also contains a commitment to invest $1 trillion in green projects by 2030, and new obligations for their energy-sector clients to have near-term Net Zero-aligned targets in place by 2026, with decarbonisation strategies implemented by 2025. This really feels like a significant moment in the drive towards Net Zero!
Ikea decouples business growth from emissions growth
Ikea has successfully disconnected its business growth from its emissions, having increased revenue by 30.9% since 2016 while achieving a 24.3% reduction in GHG emissions over the same period. Ikea attributes its emissions savings to improved energy efficiency, increased procurement of renewable energy, and an uptick in the adoption of electric vehicles. These changes are becoming easier for businesses to adopt and reduce the emissions in their operations (Scope 1 & Scope 2 emissions), however, the key challenge most face is reducing emissions across their value chain, known as Scope 3. What is inspiring about Ikea’s progress is that they have managed to cut emissions in their supply chain and downstream activities, recording a 23.6% drop in Scope 3 emissions since 2016. Ikea is looking ahead to Net Zero by 2050, and towards being a fully circular business by 2030. With twice as many customers using its buyback and resell service during 2023 than in 2022, the signs are looking good!
Victory in the courts for climate science
Michael Mann is one of the most renowned climate scientists in the world, having championed the cause for almost 30 years. Mann produced the famous hockey-stick curve of global temperatures in 2001, which clearly shows the correlation between industrialisation and a sharp rise in global temperatures. He has gone on to continually contribute to climate science throughout his career, but as a result has been exposed to severe scrutiny by climate skeptic journalists, two of which took it too far in 2012, prompting Mann to take them to court. Last week the jury found the two journalists to have defamed Mann and fined them a combined $1 million in compensation. Mann described this victory as “a good day for science” and it shows that journalists can no longer deny the science of climate change without evidence themselves - it’s good to see that times have changed since 2012.