EU to Cut Ties With Russian Oil and Gas by 2027

Today’s ESG Updates

• EU to cut Russian oil and gas by 2027: New gas contracts banned from 2026 as the EU ends reliance on Russian fossil fuels.
• Social media tops TV for US news: 54% of Americans now get news from social media, raising misinformation concerns.
• Basel sets voluntary climate risk rules for banks: New framework urges climate disclosures but stops short of mandates.
• SBTi drafts net-zero rules for the auto sector: New supply chain emissions targets promote low-emission and recyclable vehicles.

EU’s plans to phase-out Russian oil and gas by 2027

In an attempt to gain independence from Russian oil and gas, the EU has set plans into motion to cut off Russian supplies of fossil fuels. Ursula von der Leyen, President of the European Commission, stated that “Russia has repeatedly attempted to blackmail us by weaponising its energy supplies. We have taken clear steps to turn off the tap and end the era of Russian fossil fuels in Europe for good.” New Russian gas contracts will be banned from 2026 onwards, with special provisions for landlocked countries until 2027. Member states must create a diversification plan, incorporating ESG solutions, to avoid supply and price disruptions as the EU looks to fully phase out Russian oil and gas by the end of 2027. 

“Importing gas from Russia is a security threat to Europe. This is why we are now proposing an EU ban on Russian gas imports. This will increase our energy independence while also reducing the revenues Putin uses to finance his war. The Commission will work hand in hand with all Member States, especially those that may face challenges because of this. No Member State will be left without energy as a result of this proposal.” – Dan Jørgensen, Commissioner for Energy and Housing

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Further reading: Commission proposes gradual phase-out of Russian gas and oil imports into the EU

Social media surpasses TV as the top news source in the US

For the first time, the US reported that 54% of its population consumes news through social media, overtaking TV at 50%. The stats tell the tale of a generational shift, where younger audiences respond better to online personalities and social media news, turning away from traditional news outlets. The shift was coming as more news outlets increased their social media presence and struggled to engage TV audiences. Problems around false news and misinformation remain the biggest flaws with social media consumption, in many cases, being used as a form of propaganda. 

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Further reading: For the first time, social media overtakes TV as Americans’ top news source

Basel committee introduces voluntary framework for banks’ disclosure of climate risks

The Basel Committee on Banking Supervision has released a voluntary framework for banks to disclose climate-related financial risks. The new framework encourages banks to disclose information on governance and how climate factors impact business models and strategies. There is a distinct focus on materiality and emissions, but it does not require the reporting of “facilitated emissions” from capital markets and advisory activities. The decision to create a ‘voluntary’ framework has come from US pressure, lacking reporting mandates on business climate-risk reporting. 

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Further reading: Basel Committee Releases Voluntary Framework for Banks’ Disclosure of Climate Risks

SBTi introduces draft Net-Zero Standard for the automotive industry

The SBTi has released a draft Net-Zero Standard targeting the automotive sector. The standard addresses emissions across the entire supply chain of the industry, focusing on Scope 1,2 and 3. The draft further calls to consider vehicle use and end-of-life processing to create a more recyclable industry. Companies are encouraged to increase the share of low-emission vehicles and to get better at disclosing the quality of auto parts sold for such vehicles. These considerations aim to bring a higher standard of sustainable practices across the automotive sector. 

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Further reading: SBTi Launches Draft Net Zero Standard for Automotive Sector

Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: Jakub Pabis.