UN aviation body agrees to close carbon emissions loophole

Rules to avoid double-counting of emissions cuts are a step forward, say campaigners, but more assurances are needed to meet the sector's climate promises

Negotiators have agreed rules to prevent double-counting of carbon credits used to offset airline emissions, at a meeting of the International Civil Aviation Organization (Icao) Council in Montreal, Canada.

The sector has committed to carbon-neutral growth from 2020. As air traffic growth outpaces efficiency improvements, airlines will be expected to pay for emissions reductions in other sectors to offset the climate impact.

In a closed-room meeting, Icao adopted broad criteria to ensure those carbon offsets are not also counted towards national targets and represent extra emissions savings. That was reported by NGO observers and confirmed on Twitter by French negotiator Philippe Bertoux. The press office did not respond to a request for comment.

Climate campaigners welcomed the decision, but said more was needed to meet the industry's promises. They are also calling for an age limit on eligible carbon offsetting projects and transparency around the way the rules are put into practice.

"This decision is a step forward," said Gilles Dufrasne, policy officer at Carbon Market Watch, "but without setting an ambitious restriction on the age of eligible credits for the scheme, it could mean a giant setback for climate action. The aviation industry needs to face the reality that only new carbon reductions can deliver its goal of carbon neutral growth."

There is a huge pool of dormant projects under the UN's Clean Development Mechanism that could, in theory, meet demand from airlines for carbon offsets. Analysts at New Climate Institute estimate 82 per cent of the available supply would continue cutting emissions with or without the extra revenue.

Researchers from the same think-tank urged Icao to ban projects started before 2016 from taking part in the aviation carbon market, in a commentary for Nature Climate Change last month.

Another critical issue is the make-up of a technical advisory body, which will be responsible for interpreting and applying the rules.

Annie Petsonk, aviation expert at Environmental Defense Fund, warned that it risked being shrouded in secrecy and vulnerable to industry lobbying. "We don't want Icao to become the Fifa of carbon markets," she told Climate Home News, referring to the football governing body's record of corruption.

The Icao Council meeting runs until 15 March. It is not clear whether negotiators will settle outstanding questions around the carbon market's operation at this session.

While airlines are eager to learn the details for their planning, Petsonk noted they will not need to start buying offsets until 2023. "It is more important to get it right than to rush it," she said.

The industry's Air Transport Action Group endorsed the newly agreed rules. "It is important for the industry that strong sustainability standards are applied for the types of eligible offsets," said director Michael Gill in a statement.

Meanwhile, some argue the sector should be paying more for its climate pollution. At a meeting of EU environment ministers on Tuesday, Belgium's Jean-Luc Crucke called for the bloc to impose taxes on air travel.

This article first appeared at Climate Home News

China Guangdong carbon market Update

GUANGZHOU, April 11 (Xinhua) -- Carbon emissions allowances closed at 21.43 yuan (3.19 U.S. dollars) per tonne on Thursday, 1.61 percent down from Wednesday, at China Emissions Exchange (Guangzhou), the largest local carbon market in China.

A total of 609,274 tonnes of allowances were transacted on Thursday, with a turnover of 13.08 million yuan.

The allowances, officially known as Guangdong Emissions Allowances (GDEA), are carbon dioxide emissions caps assigned to companies. Firms whose emissions surpass their share must buy extra quotas from authorities or purchase unused quotas on the market from those that cause less pollution.

Since its opening in December 2013, the market has traded 108.74 million tonnes of GDEA, with a total turnover of 2.13 billion yuan.

The carbon market in Guangdong covers all companies whose annual carbon dioxide emissions surpass 20,000 tonnes from the province, except those in Shenzhen, which has a separate market. So far, more than 240 enterprises in sectors of power generation, steel, cement, petrochemicals, paper making and aviation have been included.

Activities on the market are reflective of the industry's emissions control cost in Guangdong, a manufacturing powerhouse and big energy consumer in China.

EU carbon price hits over 10-year high on Brexit extension hopes

LONDON, April 10 (Reuters) - The benchmark European Union carbon price hit a more than 10-year high on Wednesday, on expectations Britain will get a delayed exit from the EU which will mean it stays in the bloc’s emissions trading system for longer.

The price had risen to an intraday peak of 26.89 euros ($30.22) a tonne as of 1349 GMT, its highest since July 2008.

Traders said the move was mostly due to expectations the EU will give Britain an extension to when it will leave the 28-nation bloc, which would avoid a flood of permits hitting the Emissions Trading System (ETS) from the second-largest emitter of greenhouse gases in Europe.

“Speculators are buying; (the chance of) a Brexit extension has definitely increased that. Coal has also fallen,” a carbon trader said, referring to the relatively low price of coal compared to gas which has made coal-fired generation more competitive.

The carbon price rise also pushed up British gas prices and European power prices.

Britain’s utilities and industry are among the largest buyers of permits in the ETS, which is a scheme to cut carbon emissions and charges power plants and factories for every tonne of carbon dioxide they emit.

EXTENSION?

The British government has said if it left the EU without a deal, it would immediately withdraw from the ETS and companies would be subject to a domestic carbon tax. This could lead to a sudden sell-off of EU permits.

If it secures a Brexit deal, Britain would remain in the scheme until 2020 and resume allocating and auctioning permits after the first quarter.

“When (participation) will resume depends on the UK government. In principle it could decide already at the end of April,” Refinitiv carbon analysts wrote.

“Allowing some time for the paperwork; to inform compliance companies and set an auction calendar with the ICE platform – and bar any surprises – our qualified guess is that we could maybe expect to see allocation resuming by June 2019.”

Relatively low coal prices compared to gas have also made high-emission coal-fired power generation more competitive, some analysts said.

Added to that, there is buying ahead of EU preliminary data on May 2 which will show the number of carbon permits surrendered by each installation in the ETS in 2018.

Currently, there is a permit shortage in the EU carbon market, which is forecast to grow. This could raise the average price of permits to 30 euros/tonne this year and 65 euros/tonne by 2020, according to Berenberg analysts.

“If companies do not have enough permits to match their emissions, they pay a 107 euro/tonne penalty (or they cut their emissions),” they wrote. ($1 = 0.8868 euros)

Tools of Sustainability Strategy

A company of any size can conduct a self-assessment of their sustainability and CSR performance in five key areas:

·         Sustainability/CSR Evolution

·         Ethics and Governance

·         Social (Internal and external)

·         Environmental (waste, water, energy)

·         Stakeholder Engagement

Because the Tool is intended for internal use only, the Self-Assessment Tool encourages internally open and transparent dialogue without fear of reprisal. Such openness and transparency not only improves detection of key areas of concern but also fosters better managerial decisions in ways to improve sustainability goals.

The Tool is especially helpful for companies that are just embarking on the sustainability and responsibility journey. This includes companies just embarking on the journey and those that are well underway but need a tool to track and assess their progress.

However, companies with CSR measures already in place also find the Self-Assessment Tool useful because it helps them identify areas that may have been overlooked or under-reported.

The Self-Assessment Tool is sectioned into key CSR components so that each component can be assigned to the appropriate personnel. Once each component is completed, the project coordinator compiles the responses and delivers an overall assessment for each CSR area of interest.

Bechmarking Tool

The Benchmarking Tool is a competitor analysis focusing on the area(s) of each client’s choice – from overall sustainability practices to environmental policies to stakeholder engagement or other matters of importance. Profiled companies could include industry leaders, peers, or best-in-practice companies. The recommended scope of the study includes five (5) companies, including the client company, utilizing twenty (20) sustainability indicators.

This tool gives your company an external perspective and is fully customizable to your company's needs. We wil work with you to determine the best benchmarking approach and then create a benchmarking suite that best fits your goals.

Stakeholder Mapping Tool

The Stakeholder Mapping Tool is an analysis of all of a client's key stakeholder's relationships and provides clarity of purpose and prioritization of issues and relationships. This can be critical when developing a strategic plan.

The Stakeholder Mapping Tool creates a cohesive approach throughout your organization. It provides one single place for information to be used throughout your entire company and brings to light unexpected opportunities and "ah-ha moments".

This tool will shift your company from being reactive, to being proactive.

Stakeholder Mapping Tool

The Stakeholder Mapping Tool is an analysis of all of a client's key stakeholder's relationships and provides clarity of purpose and prioritization of issues and relationships. This can be critical when developing a strategic plan.

The Stakeholder Mapping Tool creates a cohesive approach throughout your organization. It provides one single place for information to be used throughout your entire company and brings to light unexpected opportunities and "ah-ha moments".

This tool will shift your company from being reactive, to being proactive.

Benchmarking Tool

The Benchmarking Tool is a competitor analysis focusing on the area(s) of each client’s choice – from overall sustainability practices to environmental policies to stakeholder engagement or other matters of importance. Profiled companies could include industry leaders, peers, or best-in-practice companies. The recommended scope of the study includes five (5) companies, including the client company, utilizing twenty (20) sustainability indicators.

This tool gives your company an external perspective and is fully customizable to your company's needs. We wil work with you to determine the best benchmarking approach and then create a benchmarking suite that best fits your goals.

Supply chain responsibility tool kit

Our Supply Chain Responsibility (SCR) Tool Kit is a set of tools and templates that will enable your suppliers to comply with your standards, or if you are a supplier, it facilitates the development of the most common SCR requirements by your key customers. As a supplier, we provide you with templates of, for example, best practice supplier codes of conduct, child labor policy advise and guidance, water, waste and GHG footprint templates, etc.

Online web Platforms for CSR projects of a company

There are multiple challenges when it comes to designing and implementing CSR projects,be it identifying an appropriate and credible non-governmental organisation (NGO) or community cause, or implementing the initiatives involved, and evaluating the impact and outcomes.

This is where technology comes to the rescue. In the last decade or so, many online platforms have sprung up to help corporates strategise, implement, and track their CSR projects through data-driven intelligence and interventions. Some of the eminent ones are Samhita GoodCSR, SociallyGood, and Goodera.

These three platforms together have a database of 5,268 NGOs, and have helped pool in funds to the tune of Rs 2,550 crore since 2016. They are spread across diverse social welfare projects – from providing education to the underprivileged, to enabling access to drinking water for people in rural areas.

Human Capital: Nurturing Capacities for Growth

Stakeholder Engagement & Materiality

Stakeholders are individuals, groups of individuals or organizations who either affect or are affected by our operations. Regularly engaging with our stakeholders is imperative for attaining a holistic perspective of areas of concern, and identifying opportunities for improving our business processes and performance. Stakeholder engagement enables development of a trust-based and transparent relationship with our stakeholders. Through this process, Company should informs and educates its stakeholders to promote inclusive decision making and actions that, in turn, will have positive impact on the ecosystem.

Identifying Key Issues

Identification of an exhaustive list of issues that may be relevant to company and its stakeholders

Interaction with stakeholders (such as Head of Departments) to shortlist key issues relevant to  company and its stakeholders

StakeholderMapping

Mapping key issues across stakeholders and prioritizing them.

Selecting key stakeholders with whom to interact.

Stakeholder Response

Formulating stakeholder-wise questionnaires, deploying them through relevant departments and facilitating stakeholder engagement at various sites

Understanding Stakeholder perception of the company’s sustainability and their key concerns

Collating & Analyzing Response

Summarizing responses from stakeholder interviews or surveys and recording them in pre-designed format

Analysis of emerging patterns with respect to stakeholder groups and development of materiality matrix with respect to the results obtained from the stakeholder analysis.

Sustainability Strategy

Companies should work rigorously working to reduce the impact of our operations on the environment and society. This involves taking strategic initiatives and making investments in clean energy such as wind and solar with key Focus areas:

GHG Emissions (Scope I and II)

33 % reduction of GHG emission intensity.
5% reduction of Specific GHG emission. (Additional Corporate Level
Target).

Specific Energy Consumption

5% reduction of specific energy in LHC & PC products
5% reduction of Specific Energy Consumption. (Additional Corporate Level
Target)

Water Consumption PP 45% reduction water consumption intensity.

15% reduction of specific fresh water consumption. (Additional Corporate
Level Target)

Waste Water Recycling PP 5% increase in waste water recycling

Zero Discharge at plants (Additional Corporate Level Target)

Training/Awareness on Sustainability
100 % of our employees and all new joinees to be made aware within one year of their joining

Fundamental elements of Sustainability Process

Following are the main fundamental elements of Sustainability Process:

The GRI content index on pages 108-115 gives a detailed reference to the GRI performance indicators and standard disclosures. Along with GRI G4 it also adheres to the following reporting formats: PP Nine principles of National Voluntary Guidelines (NVG) on Social, Environmental and
Economic responsibilities of business, published by the Ministry of Corporate Affairs,
Government of India.

Industry guidance on voluntary sustainability reporting (2010) developed by industry association for environmental and social issues.

Principles and disclosure requirements under United Nations Global Compact (UNGC).

ISO 26000:2010 guidance on organizational social responsibility.

Material issues were identified through a materiality assessment and stakeholder engagement exercise
that was undertaken at locations (including project sites and offices) in consultation with different stakeholders and are referred in the relevant sections of this report. Each material aspect is mapped against the GRI G4 guidelines. In order to highlight the specific challenges faced by company and our initiatives towards addressing these we have further examined in the chapter on ‘Business Growth and Profitability’.

CSR and sustainability

Corporate sustainability essentially refers to the role that companies can play in meeting the agenda of sustainable development and entails a balanced approach to economic progress, social progress and environmental stewardship. CSR in India tends to focus on what is done with profits after they are made. On the other hand, sustainability is about factoring the social and environmental impacts of conducting business, that is, how profits are made. Hence, much of the Indian practice of CSR is an important component of sustainability or responsible business, which is a larger idea, a fact that is evident from various sustainability frameworks. An interesting case in point is the NVGs for social, environmental and economic responsibilities of business issued by the Ministry of Corporate Affairs in June 2011. Principle eight relating to inclusive development encompasses most of the aspects covered by the CSR clause of the Companies Act, 2013. However, the remaining eight principles relate to other aspects of the business. The UN Global Compact, a widely used sustainability framework has 10 principles covering social, environmental, human rights and governance issues, and what is described as CSR is implicit rather than explicit in these principles.

Community engagement

A community can be defined as a homogenous group of individuals bound together geographically, politically, culturally or by certain values, principles or shared characteristics.

Steps for robust community engagement:

Assess the local context: Understanding the characteristics and complexities of the local landscape and use this information for strategic planning of community engagement.

Involve communities: Support and facilitation of the process of community-driven planning to enable communities to define their own goals, identify opportunities and assets they plan to utilise or share, and prioritise areas of potential engagement with the company and other local development actors.

Identify and categorise key stakeholders: Creation of a list of the individuals, groups, and institutions that could affect or be affected by any community engagement project. This step identifies and generates knowledge about individuals and local organisations in order to understand their behaviours, intentions, inter-relations and interests.

Project implementation: Identifying the best way to deliver a project in view of several variables, such as the objectives of community engagement, project timeframe, budget and local operating context.

Measure and communicate results: Monitoring and evaluation to use the information collected in future planning and communicating these results to all stakeholders including the community, the company and other development partners.