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The 2023 IPCC AR6 Synthesis Report: a final wake-up call for Climate Action

The Intergovernmental Panel on Climate Change (IPCC) has released its latest report on the state of the planet’s climate “2023 IPCC AR6 Synthesis Report “. The report, which was compiled by hundreds of scientists from around the world, provides a stark warning about the urgent need to address the climate crisis.

The report concludes that human activity, particularly the burning of fossil fuels, is driving unprecedented changes in the Earth’s climate system, resulting in rising temperatures, sea level rise, and more frequent and intense weather events. These changes significantly impact ecosystems, food systems, and human health and well-being.

The 2023 IPCC AR6 Synthesis Report – Key Findings:

The earth is warming at an unprecedented rate

Human influence has warmed the climate at an unprecedented rate in the 21st century, and the current warming is highly likely to exceed 1.5°C above pre-industrial levels in the next two decades. Limiting global warming to 1.5°C above pre-industrial levels will require rapid, far-reaching, and unprecedented changes in all aspects of society, including the energy, land, and industrial sectors.

Immediate, rapid, and large-scale reductions in greenhouse gas emissions are needed to limit global warming to 1.5°C and mitigate the worst impacts of climate change. Adapting to the impacts of climate change is also essential, particularly for vulnerable communities and ecosystems.

The impacts of climate change are already being felt around the world.

The report highlights that climate change is not some far-off threat, but rather a present-day reality that is already having significant impacts on people and the planet. These impacts include more frequent and severe heatwaves, droughts, floods, and wildfires, as well as rising sea levels and ocean acidification.

There is a narrow window of opportunity to prevent the worst impacts of climate change.

Despite the bleak picture painted by the report, there is still hope. The report notes that we still have a narrow window of opportunity to prevent the worst impacts of climate change. However, this will require immediate and decisive action from governments, businesses, and individuals around the world.

The 2023 IPCC AR6 Synthesis Report was released in March 2023. Read this short summary of key findings from the report!

The message of the IPCC report is clear for business managers like you 

One of the report’s key messages is that the world is already experiencing the impacts of climate change which will only worsen in the coming decades, even if we take immediate and ambitious action to reduce greenhouse gas emissions.

However, the report also emphasises that the worst impacts of climate change can still be avoided if we act quickly and decisively to limit global warming to 1.5°C above pre-industrial levels. For the business sector, this means that management must prioritise sustainability and invest in renewable energy and low-carbon technologies.

For sustainable business operations, it is essential to conduct a comprehensive risk assessment for adapting to climate change.

  1. Reducing emissions is an absolute requirement for a company’s business operations and throughout the value chain (scope 1, 2, 3). It is recommended that corporate management set science-based climate goals on their agenda already this spring.
  2. Considering biodiversity alongside climate goals is equally important in developing a company’s sustainability strategy. Companies should identify how their operations affect biodiversity and make a plan to minimise those impacts.

Lastly, the scientific evidence presented in the IPCC report reinforces the ambitious requirements already adopted by the EU for complying with the climate goals of the Paris Agreement. Limiting global warming to 1.5 degrees Celsius also requires companies to take action to reduce emissions across all economic sectors.

The IPCC report is a wake-up call for all of us

We must act now to address the climate crisis before it’s too late. Here are some things you can do to help:

  • Reduce your company’s carbon footprint by investing in energy-efficient technologies, using renewable energy sources, and implementing sustainable business practices.
  • Support political candidates and policies prioritising climate action and promoting a sustainable business environment.
  • Join a local climate organization or advocacy group to collaborate with like-minded businesses and individuals and advance the movement for climate justice.
  • Educate your employees and customers on the importance of sustainable practices and the impact of climate change and encourage them to adopt environmentally responsible behaviours.
  • Take part in industry-wide initiatives to reduce carbon emissions and promote sustainable business practices, such as participating in carbon markets or joining industry associations dedicated to climate action. Such as Science-based targets.

 

Together, we can create a sustainable and just future for ourselves and future generations.

To continue this conversation, send us an email via the form below.



    Writer: Terhi Valtonen, Senior sustainability consultant, M.sc. (Admin)

    IPCC 2023 AR6 Longer report

    New corporate sustainability due diligence requirements

     

    New corporate sustainability due diligence requirements

    New corporate sustainability due diligence requirements

    The European Commission took a much-expected step towards sustainable corporate governance at the end of February when the proposal for a Directive on Corporate Sustainability Due Diligence was published. The new EU rules will require companies to strengthen their responsibility and sustainability operations throughout their global value chains and avoid adverse impacts on human rights and the environment. Companies operating in the EU will have common rules on corporate sustainability due diligence, and by this, the responsible companies can better meet investors’ and consumers’ expectations. Companies can also benefit from having a clearer view of their operations and their suppliers’ external impacts and will be able to identify problems and risks earlier.

    Companies’ due diligence requirements will be clarified

    Although many companies have already taken voluntary steps on corporate responsibility, there is a need to encourage more responsible and sustainable corporate behaviour. The aim is to answer many companies’ call for legal certainty on their due diligence requirements. Better transparency is also needed, as consumers and investors are increasingly more interested in the overall sustainability of companies and their products and services.

    What the rules mean in practice for companies operating in the EU?

    • Companies will have to integrate due diligence policy to identify and prevent or mitigate negative human rights, climate and environmental impacts in their value chain. These avoided impacts include issues such as inadequate workplace health and safety and, for example pollution of the environment and biodiversity loss.
    • Companies are required to have a plan to ensure that their business strategy, and remuneration policies, are in line with the Paris agreement to limit global warming to 1,5°
    • The proposal also involves new rules for companies’ directors that will have duties to set up and oversee the implementation of corporate sustainability due diligence processes and ensure that sustainability matters are taken into account in the corporate strategy also in the long term.

    The proposal also includes possibility to impose fines and sanctions to companies, if a company fails to fulfil its due diligence obligations. Company can also be liable for damages if its failure to comply with the due diligence obligations leads to damages to affected people.

    Large companies and high-impact sectors are in the scope

    Large companies operating in the EU (500+ employees and net turnover worldwide more than 150 million euro) are in the scope of the Directive. The rules start to apply to 2 years later for smaller companies (250 + employees and net turnover worldwide more than 40 million euro) operating in defined high-impact sectors, that include e.g., the manufacture of textiles, food manufacturing, forestry, agriculture, metal products and mineral resources. Larger market players can take a leading role in mitigating the risks in their value chains and hence support smaller companies, that are not directly in the scope of the proposal.

    Once the Directive is in force and applied in the EU, all companies in scope need to establish due diligence procedures and integrate human rights, environmental and climate objectives into their corporate strategy. Directors are required to consider sustainability consequences of their decisions in the short, medium and long-term. Company’s Board of Directors should, in principle, be able to assess the company’s operations from an environmental and human rights perspective.

    Corporate sustainability due diligence complements EU Taxonomy and sustainability reporting

    The Corporate Sustainability Due Diligence Directive complements the EU Taxonomy and CSRD (the proposal for Corporate Sustainability Reporting Directive) by requiring companies to identify their adverse risks and, for example, by helping in providing more detailed information on how companies respect the social safeguards as required by the Taxonomy Regulation. The CSRD will complete the last step of companies’ due diligence duty, that is the reporting part.

    At the same time as the due diligence proposal is negotiated in the EU, the national corporate social responsibility legislation is being prepared in Finland. According to the Finnish Government, the national and EU rules on corporate sustainability will complement each other. After all, the aim of both legislative proposals is clear, that is to have more effective protection of environment and human rights and to get more companies involved in sustainable development goals.

    Ecobio’s sustainability tools for top management

    Are you wondering how you should prepare to meet the obligations? Our sustainability experts can help you guide your organization towards sustainable development. We have the expertise to lead organizations towards their goals ranging from alternative strategies to practice management and reporting. You can find  more information about our sustainability tools for top management here.

    If you wish to speak to a consultant, please contact Henrik Österlund:

    Henrik Österlund Ecobio Oy

     

    Henrik Österlund

    email: henrik.osterlund@ecobio.fi

    phone: +358 (0)20 756 9457

     

    To read more about Ecobio Manager EU-Taxonomy services, please click here.

    Written by: Terhi Valtonen, Senior Consultant, Ecobio

    Voluntary information as part of Taxonomy-eligibility reporting

    Last December, the EU’s Taxonomy Platform published considerations on voluntary information as part of Taxonomy-eligibility reporting, which gives supplementary guidance for disclosures.

    In addition to mandatory reporting, voluntary reporting under the Taxonomy framework can enable non-financial companies and financial institutions to explain the eligibility proportion of their entire operations, investment profile, or balance sheet since it may include both Non-Financial Reporting Directive (NFRD) and non-NFRD companies, for example.

    Voluntary disclosures should be made regarding the same scope and timeline as the financial and non-financial statements of the firm and in line with the reporting obligations. Voluntary reporting should be prepared on the basis that it does not contradict or misrepresent the mandatory information according to the disclosures delegated act, and it should not be given more prominence than the mandatory disclosures. Where an undertaking includes voluntary reporting, this should be accompanied with information on the basis used for its preparation and a clear explanation of how it differs from mandatory reporting.

    Ecobio Manager – Our proposal for the first-period reporting

    We provide a free trial account for Ecobio Manager’s Taxonomy classification and reporting tool for non-financial companies. By which, your team can disclose according to the first period’s requirements. The offering is valid until the end of March 2022. Its value is 3000 euros.

    Act now! Please contact us and request your access to Ecobio Manager and book a demo presentation: sales@ecobiomanager.com.

    Text: Sanna Perkiö

    Source: https://ec.europa.eu/info/files/sustainable-finance-taxonomy-eligibility-reporting-voluntary-information_en

    Define total turnover, Capital expenditure and Operating expenses, of the Taxonomy-eligible economic activities in non-financial companies

    Last December, The European Council adopted the Delegated Act (2021/2178/EU) related to Taxonomy methodology and disclosure obligations for financial and non-financial companies.

    In 2022, non-financial companies shall disclose only information of Taxonomy-eligible activities for the environmental objectives of climate change mitigation and climate change adaptation.

    From 1 January 2022 until 31 December 2022, non-financial undertakings shall only disclose the proportion of Taxonomy-eligible and Taxonomy non-eligible economic activities in their

    • total turnover,
    • capital expenditures, and
    • operational expenditures.

    In addition, non-financial undertakings need to provide relevant qualitative information associated with the eligibility proportions.

    Ecobio has published a whitepaper that provides more implementation guidance on the EU Taxonomy classification and reporting for non-financial companies. Please find the latest whitepaper here.

    Upcoming for non-financial companies

    In Q1/2021, the European Union will adopt

    • Taxonomy classification criteria for nuclear power and natural gas, and
    • Technical Screening Criteria for remaining environmental objectives.

    Ecobio Manager – Our proposal for the first-period reporting

    We provide a free trial account for Ecobio Manager’s Taxonomy classification and reporting tool for non-financial companies. By which, your team can disclose according to the first period’s requirements. The offering is valid until the end of March 2022. Its value is 3000 euros.

    Act now! Please contact us and request your access to Ecobio Manager and book a demo presentation: sales@ecobiomanager.com.

    With best regards,

    Ecobio’s Taxonomy team

     

    Katrine Hoset

    Senior Consultant, Account Manager, PhD.

     

     

    Sanna Perkiö

    Head of Innovations, D.Sc.

     

     

    Malena WeurlanderMalena Weuerlander

    Key Account Manager

    Ecobio Whitepaper: EU Taxonomy Classification and Reporting in 2022 – Five Steps for Compliance

    Download Ecobio's Free Whitepaper Five Steps to Comply with the Taxonomy Regulation

    Update:

    EU Taxonomy classification and reporting in 2023 – Eight steps to compliance whitepaper available now

    The new whitepaper aims to provide implementation guidance on EU Taxonomy Classification and Reporting requirements valid from 2023. 

    EU Taxonomy classification and reporting in 2023 – Eight steps to compliance whitepaper

    This whitepaper aims to provide implementation guidance on EU Taxonomy Classification and Reporting requirements valid from 2023. The document deals with the actions needed by companies in the non-financial sector. Read the latest whitepaper to learn more about:

    • What is the EU Taxonomy Regulation?
    •  Which companies are required to act now?
    •  Eight steps for compliant EU Taxonomy classification and reporting from 2023

    Click for more here.

    In 2022, the Taxonomy classification and reporting requirements are limited. Non-financial undertakings are required to disclose the share of their turnover, capital, and operational expenditure associated with environmentally sustainable economic activities. Our new whitepaper contains the five steps for compliant EU Taxonomy classification and reporting in 2022.

    The whitepaper provides implementation guidance on EU Taxonomy Classification and Reporting 2022. The document deals with the actions needed in non-financial undertakings. The five-step work pipeline in the whitepaper will help you fulfil the actual Taxonomy requirements in your entity.

    2022 whitepaper covered the topics of:

    • What the EU’s Taxonomy Regulation implicates
    • How your company is affected by Eu taxonomy
    • What the current timeline for the Taxonomy looks like
    • Which requirements apply to your company
    • Five most important steps to meet the Taxonomy Requirements

    This whitepaper is no longer available for download.

    EU Taxonomy classification and reporting in 2022

    The EU Taxonomy Regulation and related statutes direct investments toward sustainable economic activities. They formulate a robust and science-based framework for companies and investors that provides environmental criteria for determining which economic activities substantially contribute to the EU Green Deal objectives.

    The EU Taxonomy Regulation (2020/852/EU) sets technical screening criteria to determine if an economic activity can be considered sustainable for six environmental objectives. Currently, the screening criteria are available for the two objectives: climate change mitigation and climate change adaptation. The screening criteria for the remaining objectives will be published in spring 2022.

    Read more about our EU Taxonomy digital solution here and our sustainable finance consultancy services here.

    Webinar 27.1: EU Taxonomy Reporting in 2022 – What are the obligations and how to use digitalization in reporting?

    EU Taxonomy Reporting in 2022 - What are the obligations and how to use digitalization in reporting?

    Join our EU Taxonomy webinar on the 27th of January!

    Register here

    In our webinar, Ecobio’s EU taxonomy experts will briefly review the current environmental classification and reporting obligations of the EU Taxonomy for large companies and entities regarding 2022 reporting. The webinar focuses on the requirements of large listed companies and non-financial entities.

    Why is EU taxonomy reporting timely?

    The EU Taxonomy Regulation requires large organizations to assess and report annually the financial impact of environmentally classified activities. In the spring of 2022, large listed companies and other non-profit organizations will report for the first time in accordance with the regulation.

    The EU Commission has created a complex system that makes it easy for companies to get lost without expert help and a systematic way of working. Our webinar presents the steps of first-year taxonomy reporting and introduces an easy and comprehensive digital solution to meet the complex requirements. The taxonomy requirements will expand next spring, making it profitable to take advantage of the efficiency offered by digitalization. As an added benefit, we offer a free trial use of Ecobio Manager for taxonomy-obliged participants for a limited time.

    Webinar agenda

    Our taxonomy experts will answer the following questions in the webinar:

    1. What are the benefits of the EU taxonomy regulation?
    2. Which entities will be affected by the EU taxonomy in 2022, and what are the obligations?
    3. How are economic activities identified, and how do you perform an eligibility assessment?
    4. What key performance indicators should be reported and how?
    5. What else is required for financial reporting?
    6. How will the EU taxonomy develop in 2023 and the future?
    7. How can digitalization help with environmental classification and reporting?

    During the event, it is possible to ask questions of our experts in the chat.

    To whom?

    The webinar is aimed at financial and sustainability reporting officers of listed companies and other public interest entities, financial- and sustainability experts and those in charge of EU Green Bonds.

    What are the additional benefits for the webinar participants?

    We offer your company a free trial (worth 3 000 €) to our digital taxonomy solution, Ecobio Manager, until the end of March 2022. During the trial, you can conveniently use digitalization to classify and report your data according to the first year’s requirements. The offer is intended for participants with taxonomy obligations.

    We give you the opportunity to take advantage of the added benefit even before the webinar. Contact us by email at sales@ecobiomanager.com, and we will open the service for your company.

    When?

    The free webinar in English will be held on Thursday, January 27, 2022, from 11:00 to 11:40 (UTC+2)!

    In case you are interested in the topic but would prefer to listen to the webinar in Finnish you can register for the Finnish webinar (27.1.2022 at 10.00-10.40) here.

    Welcome to listen and ask about the current EU environmental classification!

    Register here

    Read more about Ecobio here and Ecobio Manager here.

    The Climate Delegated Act to the EU Taxonomy Approved and Ready to Be Applied

    European Commission

    The delegated act on the climate part of the EU regulation (2020/852) on taxonomy – the first delegated act presented by the European Commission – was approved by the majority of the Member States. The delegated act specifies the technical screening criteria for environmental objectives of climate change mitigation and climate change adaption – two of six environmental objectives included in the EU Taxonomy. The Official Journal has published the decision on Thursday, the 9th December 2021.

    This approval means that the large public-interest companies with more than 500 employees can accelerate their preparations to disclose this year’s taxonomy eligible economic activities as defined in the climate delegated act.

    Before the end of the year, the Commission will present a complementary delegated act concerning the inclusion of fossil gas and nuclear in the taxonomy. No official date has yet been set.

    Would you like to have more information about EU Taxonomy?

    Please subscribe to Ecobio’s EU Taxonomy News here and book a presentation for Ecobio Manager’s digital taxonomy tool here.

    Text: Sanna Perkiö & Katrine Hoset

    Picture: Shutterstock

    Source: European Parliament, 9.12.2021

    Join our presentation of the world’s first comprehensive digital solution for the EU Taxonomy!

    Join our presentation of the world’s first comprehensive digital solution for the EU Taxonomy!

    Do you need help with EU Taxonomy classification and reporting? Join our presentation of the world’s first comprehensive digital solution for the EU Taxonomy!

    Register here

    Join us for a free 30 min presentation and we will show how the new section in our digital solution, Ecobio Manager, will help you to turn the complex set of EU Taxonomy requirements into a smooth and straightforward work process for your team.

    With the requirements for the EU Taxonomy soon coming into effect, it is beneficial to have an innovative, efficient, and in-depth solution at hand, to get the process toward compliance started.

    Join our presentation to learn:

    • How you can benefit from digitalization during classification and reporting
    • How our easy-to-use and comprehensive digital solution works
    • How to create a smooth and straightforward work process for your taxonomy team

    During the event, you are also able to ask questions from our experts. Please register using your business email address.

    The free online presentations are held on Wednesdays at 13.00-13.30 (UTC+2). You can find the presentation dates and register here. 

    You are warmly welcome!

    Read more and register here.

    Are you unsure whether you are in or out of the EU Taxonomy classification and reporting requirements?

    Take our EU taxonomy quiz and determine whether your company is affected by the EU Taxonomy regulation. Take the quiz here.

    Our recorded webinars can be found on our homepage

    In our webinar library, you can find our recorded webinars that you can watch whenever you find most suitable for you! You can find our webinar library here.

    Ecobio launched the world’s first comprehensive digital solution to comply with the EU Taxonomy Regulation

    Ecobio launched the world's first comprehensive digital solution to comply with the EU Taxonomy Regulation
    The Ecobio team at the launch event 29.9. From left: Taru Halla, Emma Björkqvist, Katrine Hoset, Sanna Perkiö & Evelina Meski

    The EU environmental classification legislation for sustainable finance, in short, EU Taxonomy Regulation, is a large-scale, regulatory-based framework that requires companies to define environmentally sustainable economic activities. The regulation is an EU tool to steer the economy towards sustainable development. Companies will have to meet the requirements gradually from the beginning of 2022.

    The EU Taxonomy Regulation obliges large, listed companies and companies operating in the financial markets to classify, assess and disclose their economic activities in accordance with sustainable development criteria. In the future, the Taxonomy Regulation will apply to a broader range of business entities.

    Companies are now preparing to comply with the requirements of the EU Taxonomy Regulation. To date, little assistance has been available for companies to assess the conformity of a large-scale classification system and to report data.

    Ecobio Manager aims to solve the EU Taxonomy challenge of over ten thousand companies

    Today, Wednesday, September 29, 2021, Ecobio announced the world’s first comprehensive and easy-to-use digital solution to meet the requirements of the EU Taxonomy Regulation. The solution is implemented as part of the Ecobio Manager SaaS service. Ecobio Manager is an environmental compliance tool for business operations, products, and subcontractors as a cloud service.

    – Ecobio Manager is the world’s first comprehensive taxonomy solution including a smooth classification process and up-to-date legal databases, as well as an environmental risk assessment protocol. So far, there has been no service with similar coverage in the global market, said Sanna Perkiö, D.Sc., founder, and the Head of Development of Ecobio.

    The EU Commission has created a complex system, which may result in companies getting lost in the requirement jungle without expert help and a systematic way of working.

    – We offer over ten thousand companies in the EU an easy and competent digital solution to meet the requirements of EU Taxonomy. Feedback from listed companies and the financial industry has been both enthusiastic and relieved.

    From the beginning, companies should take advantage of the efficiency offered by digitalization, Perkiö suggested.

    – The first requirements of the taxonomy must be reported as early as next spring. We expect wide interest and customers from all over Europe.

    Read more about our digital solution for EU taxonomy here.

     

    Webinar 29.9: Comply With the EU Taxonomy Regulation

    Are you trying to comprehend the EU Taxonomy regulation and what it means for your company? Do you want to find out the benefits of digitalisation in meeting the requirements? This event is for you.

    Register here!

    In our webinar, our senior consultant Katrine Hoset, PhD, will go through the EU Taxonomy Regulation and how financial and large companies can fulfil the new classification and reporting requirements in sustainability. The Taxonomy Regulation is already in force, and reporting against two of the objectives is required already in 2022 for the financial year of 2021. As the regulation is constantly being updated, we will present the newest details covered by the legislation.

    Additionally, we will launch Ecobio’s new digital solution to ensure compliance with EU Taxonomy classification and reporting requirements. We will present the new SaaS in Ecobio Manager that turns the complex set of requirements into a simple and smooth work process for your team. With the requirements for EU Taxonomy soon coming into effect, it is beneficial to have an innovative, efficient, and in-depth solution in mind already now to get the process toward compliance started. The launch includes a panel discussion among the creators of the tool, and questions from the audience will be discussed live.

    What

    Watch our event to learn:

    1. What the EU Taxonomy Regulation implicates
    2. What the current timeline for the Taxonomy looks like
    3. Which requirements apply to your company and when
    4. What the compliance process looks like
    5. About our new digital solution for EU’s Taxonomy Classification and Reporting

    During the event, you will get an opportunity to ask questions from our experts.

    To Whom

    The intended audience of this webinar is corporate board members and management teams in sustainability, finance, and communication. Both financial market participants (FMPs) and large companies that already need to provide a non-financial statement according to the non-financial reporting directive (NFRD) will be affected by the regulation.

    Are you unsure whether you are in or out of the EU Taxonomy classification and reporting requirements? Take our quiz and determine whether your company is affected by the EU Taxonomy regulation. Test here.

    When

    The free online event will be held in English on Wednesday, 29.9.2021, from 9.00-10.00. Timetable:

    • 9.00-9.30: Comply With the EU Taxonomy Regulation (webinar)
    • 9.30-10.00: Launch of Ecobio’s new digital solution to ensure compliance with EU Taxonomy classification and reporting requirements

    You can register here!

    Our recorded webinars can be found on our homepage

    In our webinar library, you can find our recorded webinars that you can watch whenever you find most suitable for you! You can find our webinar library here.