Today’s ESG Updates
- EU to Impose 25% Tariffs on US Goods: The EU announces a 25% tariff on $22 billion of US products in response to trade tensions.
- IFRS and TNFD Partner on Nature-Related Disclosures: The IFRS and TNFD sign MoU to integrate nature-related risk reporting into capital markets.
- US Exits Shipping Decarbonisation Talks: The US withdraws from UN talks on decarbonising shipping and opposes a proposed carbon levy.
- Eni’s Plenitude Expected to Hit $11B Valuation: Eni expects its renewable arm, Plenitude, to be valued at over $11 billion as part of its energy transition strategy.
EU fights back with announcement of tariffs on all US goods
Following much debate, the EU Commission has confirmed a 25% tariff on a range of US products, including steel, aluminium, tobacco, almonds, orange juice, poultry, soyabeans, and yachts. These are the EU’s first retaliation measures in the growing trade war waged by Trump. The list of products mentioned was of much contestation among EU member states as France, Ireland, and Italy secured the removal of bourbon to avoid the threatened 200% tariffs imposed by Trump on alcohol. Around $22 billion per year of US goods will be affected. The EU has made it clear that these measures can be lifted whenever the US agrees to negotiations. Expect tariffs to hit off from April 15th.
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Further reading: Commission proposal to impose trade countermeasures against US obtains necessary support from EU Member States
IFRS and TNFD sign agreement to progress further nature-related financial disclosures
The IFRS Foundation and the Taskforce on Nature-related Financial Disclosures (TNFD) have announced that they have signed a Memorandum of Understanding (MoU), committing to providing capital markets with nature-related information. The collaboration involves the integration of TNFD recommendations into the International Sustainability Standards Board (ISSB) to aid nature-related risk reporting. The MoU formalises the commitment of both groups to reducing fragmentation in sustainability reporting and providing investor-ready insights. Businesses looking for sustainability reporting tools can research ESG tools to aid in nature-related risk reporting.
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Further reading: IFRS Foundation and TNFD formalise collaboration to provide capital markets with high-quality nature-related information
US rejects talks for shipping decarbonisation, urging others to follow
The US has withdrawn from talks in London to decarbonise the shipping industry. Delegates are at the UN shipping agency’s headquarters this week for negotiations to discuss plans for the shipping industry to reach net zero by 2050. The US’s strong stance against decarbonisation comes after it abandoned the Paris Agreement and disagreement with the introduction of the first carbon levy for shipping on greenhouse gas emissions. The carbon levy, proposed to the UN’s International Maritime Organization (IMO), aims to tackle the 3% worldwide emissions the shipping industry is responsible for. China and Brazil are among the additional members to disagree with the negotiations continuing with those willing.
Photo Credit: william william
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Further Reading: US exits carbon talks on shipping, urges others to follow – document
Eni expects renewable arm Plenitude valuation to hit over $11 billion
Eni has announced that it expects its renewables and retail arm, Plenitude, to be valued at over $11 billion by investors interested in a minority stake. Under its satellite strategy, Eni plans to sell another minority stake following its successful investment by Swiss fund Energy Infrastructure Partners (EIP). Eni’s sudden rapid movement of investments and selling of assets follows the long-term strategy of its so-called satellite operations, aimed at raising funds for energy transition purposes. The strategy is expected to generate €13 million of cash flow in the next four years. Future sustainable investment is becoming more common, with ESG solutions offering credentials to attract long-term investment.
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Further reading: Eni expects investors to value Plenitude at more than $11 billion
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: Kurt Cotoaga
