Ying Fam

Earlier in December, I had the opportunity to join an insightful panel on navigating mandatory sustainability reporting frameworks like CSRD and California climate disclosures at Sustainability Roundtable, Inc. Summit. **Key takeaways from our work at Wayfair** ✅ Go Global from the Start: Aligning global disclosures early simplifies processes, avoids duplicative efforts, and prepares for future requirements like CSRD's global mandate. ✅ Cross-Functional Collaboration is Key: Aligning Sustainability, Finance, Legal, Purpose & Inclusion and other teams is crucial for streamlining decisions and balancing reporting with actionable sustainability initiatives. ✅ Leverage the Right Partners: Choosing consultants and ESG systems with proven methodologies ensures smoother processes for DMA, EU Taxonomy preparation, and audit readiness. Looking ahead to 2025, our priorities include CSRD preparedness, refreshing climate scenario and risk assessments, and implementing an ESG system - all while balancing reporting with impactful sustainability initiatives. Grateful to have shared the stage with Leila Costa, Mizuki Yamamoto and Tim Martin, with Alison Millman leading the discussion! #Sustainability #MandatoryReporting #CSRD #ESGLeadership

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The findings in the recent The Wall Street Journal article, by Rick Wartzman and Kelly Tang, CFA, reaffirm what we experience daily: integrating a climate strategy into our organizational priorities and strategies is just smart business. It's rewarding to see the correlation between prioritizing climate and excelling in overall management. At Avery Dennison, we've witnessed firsthand how our products and solutions, like RFID, help reduce waste across supply chains, advance transparency and circularity, improve supply chain efficiency and drive innovation. Data from our regular employee engagement survey confirms that our ongoing commitment to sustainability resonates deeply with our employees, fueling their engagement and pride in their work. It’s clear that addressing climate change isn't just about mitigating risks, it’s about seizing opportunities to innovate and lead. I am proud to be part of a company that not only acknowledges the urgency of climate action but also leverages it to drive business success and foster a culture of purpose and engagement. To all my colleagues and peers in the industry, let's continue to push forward. The cost of inaction is far greater than the cost of taking decisive, informed steps toward a sustainable future. https://lnkd.in/efmscEMD #Sustainability #ClimateAction #AveryDennison

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If you are just starting out on your ESG journey or want to do a high level review of where you stand, I can't think of a better starting point than out ESG SelfAssess Tool. Let us know if you want to implement or have any questions.

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Thrilled to see the public consultation on PCAF’s updated GHG Accounting and Reporting Standard go live. As a member of the Board, it’s been a privilege to oversee this critical work, ensuring the methodologies deliver on PCAF’s commitment to transparency and accountability in global finance. This consultation includes new guidance on Forward-Looking Metrics, Financed Avoided Emissions, Use of Proceeds Accounting, and emissions related to insurance portfolios. These updates are key to empowering financial institutions to achieve greater transparency and accountability in their climate action efforts. Stakeholders, your voice matters—submit feedback by February 28, 2025: https://lnkd.in/emXnpePg And if you want to hear more about the methodologies from the PCAF technical team, register for one of our webinars on December 11th via the following links: https://lnkd.in/emBhxDsw // https://lnkd.in/eNkKRGET #ClimateFinance #GHGAccounting

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KnowTheChain's 2024 Good Practice Guide shines light on how companies can tackle forced labour risks in their supply chains. This guide highlights actionable steps and real-world examples across Apparel & Footwear, Food & Beverage and ICT to address one of the most pressing human rights issues: forced labour. Key practices from the report that companies should adopt to build ethical, resilient supply chains: 1️⃣ Traceability and Transparency Mapping your supply chain beyond Tier 1 is critical. Best in class companies disclose supplier details, including raw material sourcing, helping to identify and address risks before they escalate. ➡️ Start here: Ensuring you have the tools required to go beyond tier 1, prioritise high-risk materials (e.g., cotton, leather), and update disclosures regularly. 2️⃣ Risk Assessment Companies must conduct regular, worker-centered risk assessments. Woolworths, for example, identified risks tied to migrant workers across specific commodities and regions, enabling targeted action. ➡️ Focus on: Engaging workers, unions, and civil society for insights—beyond traditional audit tools. 3️⃣ Responsible Purchasing Practices Poor purchasing practices can drive exploitation. The report highlights, for instance, stabilising supplier relationships with clear forecasts and planning, ensuring suppliers can meet standards sustainably. ➡️ What to do: Align pricing to cover labour costs, reduce last-minute order changes, and disclose data on orders and payment terms. 5️⃣ Recruitment Fees and Migrant Worker Protections Migrant workers often face recruitment fees that lead to debt bondage. Best in class companies take proactive steps to eliminate these fees and ensure workers are reimbursed. ➡️ Key action: Adopt the Employer Pays Principle, map recruitment corridors, and verify compliance with recruitment standards. 7️⃣ Grievance Mechanisms and Remediation Effective grievance mechanisms ensure workers' voices are heard. Best in class organisations facilitate repayments to migrant workers after uncovering excessive recruitment fees. ➡️ Focus on: Ensuring mechanisms are accessible, anonymous, and worker-centered, with transparent reporting on outcomes. See the full report:

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Does your company operate in California? If yes then there are new regulations under SB 219 / SB 253 / SB 261 / AB 1305 which bring mandatory emissions disclosures, third party assurances and climate risk reporting which impacts over 5000 companies! See this guide to get started on how to ensure compliance, protect your brand, and stay ahead. https://lnkd.in/d4Aadwei #SB219 #SB253 #SB261 #AB1305 #Sustainability #Netzero #SDX dltledgers

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Climate Capital Guidebook: Last month the White House released a Climate Capital Guidebook to provide a simple map of capital programs (grants, loans, and equity investments) across the federal government available to climate-related #startups, small- and medium-sized businesses, and their investors. This Guidebook contains information on programs made possible by the Bipartisan Infrastructure Law, Inflation Reduction Act, and annual appropriations. Each program has information on eligible entities (with specific information relevant to startups like whether pre-revenue companies are eligible), eligible uses, deal size, application requirements, the program website, and more, as well as points of contact so businesses can get quick answers to their questions. #climate #capitalaccess https://lnkd.in/gP--uBPG

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We're excited to share our latest ERM Market Alert: "Navigating the 2024 CDP Questionnaire: Your Roadmap to Environmental Leadership." This guide is packed with crucial tools, regulatory overview and insights to elevate your CDP performance. Feel free to reach out how ERM can support you through your CDP requirements to provide investor grade disclosures. Rahul Arora, Paul Simpson OBE, Varsha Dandapani, Kay Ramchurn #sustainableinsight #cdp #climate

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Sustainability - regulatory reporting obligation or strategic business opportunity? Both. Despite delays in new sustainability reporting requirements, U.S. companies are stepping up their efforts, according to a new study. More than 2/3 of large companies have dedicated budgets for reporting & nearly all plan to increase their spend. Interestingly, the EcoOnline Global survey found 37% are asking suppliers to self-report their data. This has implications for broadband service providers who will eventually be asked by customers to report on their environmental impact. That’s why we’re focused on reducing the environmental impact of our products and services now. But buried in the article is even more interesting data, including 74% of respondents that expect a positive impact on revenue growth, and 95% expecting a positive impact on brand value from sustainability initiatives. How are you approaching new reporting requirements? And do you think it's a strategic imperative? #sustainability #sustainabiityreporting #ESG https://lnkd.in/gV_ifp7w

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It’s impossible to distill the topic of #climatefinance for #adaptation into a single brief publication, especially because so much of the work that will determine success or failure as climate hazards intensify remains uninitiated. Yet the need for increased financing to help the world, especially developing countries, build #resilience is clear. Keeping up with financing needs, which amount to as much as $366 annually in developing countries, requires significant contributions from the private sector. I enjoyed writing this primer with Gary Zieff Alexander M. Isabela Madinabeitia Shawn Wu and Deidre W. to begin to unpack the motivations and mechanisms driving private sector funding for adaptation. With COP29 kicking off in a week, I hope to see ample attention on this topic and ratcheted up participation across all sectors. https://lnkd.in/dg39MiGz

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EY's 6th Climate Barometer is out! Now even more focused than previously on how climate disclosures are (or aren't yet) driving climate *action*. Some key points: 1. There is a huge gap around transition and adaptation planning. Only 41% of companies surveyed say they have adopted a climate transition plan, and only about half have a climate targets beyond 2030. 2. Companies are conducting more climate scenario analysis - but aren't reflecting this in financial statements. Still only a third of the companies surveyed reference climate risks in their financial statements. Granted, there are practical challenges with doing so - but, for the countries surveyed, significant impacts on GDP are expected if no climate action is taken, and this should be starting to show. 3. Companies are improving the coverage of their climate risk disclosures - but not so much the quality. Some of the countries contributing most to global carbon emissions still have quality scores of 30% and less. There is so much more to do - from using data more strategically, to collaborating across sectors and across business units, to moving climate change closer to the core of your business strategy! Please see the full analysis and the key asks of the report here: https://lnkd.in/esSpbTeg. Matthew Bell Michael Green FRM Naveen Agrawal Frederic Papon Beth Nelson Claudio Nuber Sofia Luz Mark Veser Matthew Handford #climatechange #sustainability

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As we wrap up the end of the year, there have been major developments and advancements in sustainability / climate reporting to be aware of 👀 The '2024 Progress on Corporate Climate-related Disclosures' report highlights significant global advancements in aligning corporate climate disclosures with #TCFD recommendations. Did you know that over 40% of global market capitalisation and jurisdictions (that are representing 57% of global GDP), are moving towards adopting ISSB standards? 💡 This shift reflects growing regulatory pressure and an increased demand for assurance on climate data. Key jurisdictions implementing assurance requirements include: 🇬🇧 UK: Endorsing #ISSB standards in 2024, with assurance expected for listed companies. 🇨🇦 Canada: Considering assurance for its voluntary sustainability standards, with guidance available from 2025. 🇦🇺 Australia: Introducing mandatory disclosures in 2025, with assurance moving from limited to reasonable over time. 🇧🇷 Brazil: Requiring assurance for sustainability disclosures by 2026. 🇪🇺 EU: Introducing phased assurance requirements, transitioning to reasonable assurance by 2028. Other countries such as Ghana, Hong Kong, Malaysia, and Nigeria are adopting ISSB standards with phased assurance timelines. Key Trends: Countries are gradually phasing in assurance, aligning with global frameworks like ISSB and #IFRS, and raising verification standards. The global push for credible sustainability data is clear, with many regions transitioning from limited to reasonable assurance - which is very interesting! Great research and design by my colleagues at Datamaran, Atrayee De & Tania Maliarciuc ⭐

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Ecosystem Marketplace released their State of the Voluntary Carbon Market report yesterday. Essentially, their reports provide a unique and comprehensive view of the voluntary carbon market using data and insights not available elsewhere. This makes the report a valuable resource for anyone interested in understanding the current state and future direction of the VCM. I read the report and have grouped my top 9 Takeaways: 1️⃣ Market Contraction: The voluntary carbon market (VCM) experienced its second consecutive year of contraction in 2023, with transaction volume plummeting by 56% from 2022. The total value of reported transactions also declined by 61% to $723 million USD. 2️⃣ Price Trends: Despite the overall decline, the average price per ton of CO2e remained relatively stable, dropping by only 11% to $6.53 USD. This suggests that while transaction volumes have fallen, the underlying value of carbon credits has been more resilient. 3️⃣ Media Scrutiny's Impact: Increased media attention, often negative, significantly impacted the VCM in 2023. This scrutiny, particularly concerning project additionality and governance, led to concerns about greenwashing and prompted some buyers to withdraw from the market. 4️⃣ Integrity Initiatives Emerge: Organizations like the Integrity Council for the Voluntary Carbon Market (ICVCM) and the Voluntary Carbon Markets Integrity Initiative (VCMI) introduced frameworks to bolster market integrity and enhance transparency, signaling a move toward greater standardization. 5️⃣ Shift Towards Co-Benefits: The report highlights a growing preference among buyers for carbon credits that offer additional social and environmental benefits, known as co-benefits, suggesting a move toward more holistic climate action. 6️⃣ Project Category Dynamics: The report reveals differing trends across project categories. For example, the Forestry and Land Use category, while still the largest, experienced a 68% decline in transaction volume, reflecting heightened scrutiny of REDD+ methodologies. Conversely, the Energy Efficiency/Fuel Switching category saw a 43% increase (will this trend continue once the ICVCM completes analysis on engineered avoidance methodologies later this year?). 7️⃣ Nature-Based vs. Engineered Credits: In 2023, engineered credit transactions surpassed those of nature-based credits, potentially due to concerns about the additionality of some nature-based projects (REDD+ as a standout in the n-b space). 8️⃣ Regional Trends: While transaction volumes declined globally, North America stood out as an exception, with a 15% increase, potentially driven by a demand for locally sourced credits. 9️⃣ Transformative Phase: The report emphasizes that the VCM is undergoing a pivotal period of transformation. The market is maturing, with increasing emphasis on quality, transparency, and the integration of co-benefits.

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Today, companies that are doing carbon reporting use Emissions Factors (EFs) from external sources such as GHG Protocol, US EPA & UK DEFR in converting operational activities, such as employee commute, to GHG. While some EFs are geographically agnostic (e.g. fuel combustion), many EFs, especially around Scope 3 are specific to geography.   This will change with the launch of the Singapore Emission Factors Registry (SEFR) announced by Minister Grace Fu at Ecosperity Week 2024.   Singapore Business Federation (SBF) is leading a public-private consortium involving A*STAR - Agency for Science, Technology and Research (A*STAR), PwC and Singtel to develop a set of localised EFs reflective of our local operating environment. This will help Singapore-based businesses to track and report their emissions more accurately, and in turn, empower businesses to make informed decisions on how to reduce their carbon footprint based on their environmental impact.   The EFs will be developed in phases with an initial baseload comprising data collected and consolidated from various government agencies ready by the end of 2024. This includes EFs related to transportation, water, general waste, and energy. EFs for new categories and activities will be developed and released based on industry consultations and demand.   We are delighted to lead this consortium with the support from Ministry of Trade and Industry (Singapore) and Ministry of Sustainability and the Environment, Singapore, and grateful to our partners ASTAR, PwC and SingTel for their contributions in this endeavour. A shout out to Kelvin Zin, Jonathan S.C. Low, Eu-Lin Fang, Dr. Srikkanth Ramachandran, Hui Mien Lee, Marcus Tay Guan Hock, Aileen Tan for journeying with us!   A lot more work lies ahead as we move to set up the SEFR. If you are keen to contribute to this initiative and be a partner, do contact my team - kokwing tham, Mia Sara Choo, Musa Fazal   https://lnkd.in/epyJRaZh

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Recommended reading for those engaged in corporate climate risk analysis and mitigation. Now in its 6th year our 2024 EY Global Climate Action Barometer finds that despite improved disclosures, companies must take more urgent action on climate. ✳️ Despite climate-related disclosure quality (54%) and coverage (94%) increasing, growth does not match the pace needed to avoid the looming climate crisis. ✳️ While most of the companies are aware of the physical risks they face related to climate change, a mere 19% have adopted plans to mitigate those risks. ✳️ Transition planning gaining momentum but still only 41% of surveyed companies have a transition plan Read the summary including country level and sector level breakdowns, and download the full report here: https://lnkd.in/esSpbTeg Matthew Bell | Velislava Ivanova | Brandon Perlberg, JD | Rob Doepel | Douglas Johnston | Mark Fisher | Brian Hatton | David Kennedy | Cameron Cartmell | Michael Green | Jelena Eremic Newson | Jessica Cranswick | Rebecca Donnellan | Rebecca Farmer | Alan Holm | Ian Behling | Matt Wilson | Kim Paykel | Alwyn Hopkins | Simon Constance | Steve Wilkinson | Oliver Cassidy

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Meta RFP: Value Chain Interventions for Emissions Reductions "We are now initiating a public Request for Proposals (RFP) in order to pursue scalable solutions for procuring CO2e reductions in sectors with commercially viable solutions and to establish relationships with new project developers, solutions providers and project hosts that are active in more nascent sectors. With this RFP, we intend to be more prescriptive with our project requirements and expected deliverables and stricter with our requirements for how proposals will approach the measurement and verification of emissions reductions."

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I find this Reuters article by Maria and Mandy defending the controversial move by #SBTi, (now reversed due to stakeholder pressure), deeply troubling. They agree that supply chain decarbonisation is the biggest challenge of the signatories. The main reason why this is lagging is, instead of tackling this as a collective value chain goal, each company in the value chain is focused on their own scopes 1/2, and pass 'mandates' for their supply chain to decarbonise. The article itself says some signatories are still figuring out how to measure scope 3 emissions demostrating lack of seriousness about scope 3. The response to this should not be allowing more shortcuts but to hold them accountable. The solution in the article is to open up carbon credits/EACs to offset Scope 3 emissions. This creates misalignment between the way individual supply chain companies can decarbonise (no EACs) and with the signatory company scope 3 (EACs). Thus the need for collectively tackling it is further removed. Instead, signatories can buy EACs from the cheapest offer, and wash their hands away. This is similar to current approach with RECs. We will not solve the climate crisis with this. They acknowledge the key problem - that companies are not putting enough investment andthe results are plain to see. This could have been easily solved by asking companies to commit sufficient funding to supply chain decarbonisation. This can be tracked by adjusting the reporting requirements for SBTi. SBTi can ask companies to set a carbon price, and calculate the total cost of scope 3 emissions, and report the investment in supply chain decarbonisation against the total cost of scope 3 emissions. And if they are serious, SBTi can mandate a minimum percentage spend. We can guess what this simple reporting change will tell you, that at least 80% of companies who signed up for SBTi will have zero to negligible spend on supply chain decarbonisation, relative to their scope 3 emissions. There are many ways to fund supply chain decarbonisation - our recent whitepaper on funding fashion industry decarbonisation shows many old and new pathways. Note - none of them was relying on EACs. https://lnkd.in/gNuVizQ6 It is true that global South is not receiving funding - and asking the signatories (most of whom have supply chains in global south) to take responsibilities for supply chain decarbonisation will do just that - and is in line with the Paris agreement which specifically required such financial flows. There are great projects for carbon credits in the developing world, related to ecosystems and forestry - though what is legit is increasingly being challenged. Investments to these are required, but should not be conflated with value chain decarbonisation requirement.

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