Today’s ESG Updates
- US Exits Paris Climate Agreement and WHO: Trump orders withdrawal, calling into question the US commitment to sustainability.
- EU Plans Ban on ‘Forever Chemicals’: The EU proposes banning PFAS in consumer products in an effort to reduce public health risk.
- UK Carmakers Avoid Fines for Missing EV Targets: UK carmakers dodge fines in 2024 due to flexibilities in electric vehicle sales quotas.
- IBM and L’Oréal Develop Sustainable Cosmetics with AI: IBM and L’Oréal use AI to optimise cosmetic ingredients to reduce waste and enhance sustainability.
US exits Paris Climate Agreement and WHO
As one of his first acts as the 47th US President, Trump has ordered the US withdrawal from both the Paris Climate Agreement and World Health Organisation (WHO). These orders are raising concerns over global climate action and pushing the US further away from endorsing ESG regulations. Industry experts say that complying with ESG is becoming essential in the market, with businesses still needing ESG solutions to remain competitive.
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Further reading: Trump orders US exit from Paris climate agreement and WHO
EU plans ban on ‘forever chemicals’ in consumer products
The European Commission is proposing a ban on the use of PFAS, or “forever chemicals”, in consumer products. Proposals and exemptions will start as early as next year, with planned exemptions for essential industrial use. Research links PFAS exposure to serious health issues such as liver damage and cancer, which puts litigation risk on companies using the chemicals. Companies wishing to meet ESG regulations will need to phase out “forever chemicals” in the near future.
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Further reading: EU plans ban on ‘forever chemicals’ in consumer products
Carmakers in the UK dodge fines for missing electric car sale targets
According to analysis, no carmaker in the UK will need to pay fines for missing any electric car targets in 2024. “Flexibilities” mean that carmakers can meet the zero–emissions vehicle mandate (ZEV) without having to meet electric vehicle sales quotas by buying credits from rivals to avoid fines. However, there is an expectation for intense industry lobbying to ease the mandate, as carmakers worry that maintaining quotas will become unsustainable for their businesses.
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Further Reading: All carmakers in UK to escape fines for missing electric car sales targets in 2024
IBM and L’Oréal partner to develop more sustainable cosmetics using AI
L’Oréal has partnered with IBM to assist in developing more sustainable cosmetic products with the use of AI technology. The use of AI will allow for the optimisation of cosmetics ingredients and formulations to reduce energy and material waste. These efforts are all part of L’Oréal’s sustainability targets, aiming to have most of its product formulas based on bio-sourced materials or the circular economy. Businesses can leverage AI tools to meet their own sustainability targets.
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Further reading: IBM, L’Oréal to Use AI to Develop More Sustainable Cosmetics
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: visuals
