The Sillion Briefing 23.08.2024
Need-to-know corporate sustainability and ESG news, delivered fortnightly
In this edition...
London airport expansion
English councils flooding
CDP deadline extension
Scotland-England cable
BBC's SBTi target
Government
Green light for London City Airport expansion
The new Labour government is facing its first major opposition from green campaigners after Deputy PM and Communities Secretary Angela Rayner approved expansion plansfor London City Airport. The most central airport in the capital will now be allowed to increase its annual passenger capacity from 6.5 million to 9 million, largely through allowing more flights between 6AM and 9AM. The decision conflicts the recommendations of the Climate Change Committee, the independent body advising the UK government on climate change, which warned that expansions of the aviation sector would directly threaten the UK’s emissions goals. Critics fear the Government’s decision sets a precedent for similar planning applications at Luton and Gatwick expected later this year. Food for thought – recent analysis from the New Economics Foundation found that the majority of the destinations served by London City Airport could be reached in less than six hours by train.
The proportion of construction projects now incorporating sustainability targets, according to a report on the built environment sector from construction platform provider NBS. Stats from the report show some strong progress, with a 14% annual rise in firms setting carbon reduction goals.
One number:
70%
English councils struggle with flooding costs
Major floods following extreme weather and rainfall are causing some districts to spend up to a fifth of their annual net budget on drainage. Recent storms hitting lower-lying areas, including Lincolnshire and Cambridgeshire, have led to serious flooding, with an average 30% escalation in pumping station costs in the past two years. Weather intensification as a consequence of climate change, together with high energy costs, are now such a burden that some Councils are arguing that the government should share the expense of mitigating flood impacts.
Disclosures
CDP extends reporting deadline
CDP, the sustainability disclosure platform, has given companies more time to submit their responses this year following some reported technical issues with its new online portal. The scoring deadline, which is the deadline for those looking to receive a CDP score for their disclosures, is now the 2nd October, with the reporting window closing fully on the 16th October. This has moved from a previous deadline of 18th September (for both scoring and reporting), giving those filling out this year’s CDP questionnaires a bit more time!
If you’d like assistance on CDP, or would like to talk about any other aspect of your disclosures, then be in touch and we’d be happy to help.
Energy
£4.3bn subsea cable to boost Scotland and England renewable transfer
Regulators have approved a multi-billion-pound subsea cable project to transfer renewable electricity between north-east Scotland to the north of England. The two 315-mile cables will run from Peterhead in north-east Scotland to the east coast of England, enabling energy movement based on demand and wind conditions. Scotland is already a net exporter of electricity, with the new bi-directional link to allow for flexible imports of electricity, including during periods of low wind. The approval shows good progress for the new Labour government, with it being the first of 26 energy grid projects that the regulator, Ofgem, plans to fast-track. Work is expected to begin next year, with the goal of transmitting power by 2029.
Corporate
SBTi approves BBC net zero plans
After a two-year process, the BBC has secured validation from the Science Based Targets initiative for its ambitious plan to reduce absolute emissions by 90% by the 2050-2051 financial year. Progress is evident, with the BBC’s latest annual report confirming a 21% reduction in Scope 1 and 2 emissions since its baseline period of 2019/20.
The SBTi is currently reassessing its flagship standard for target setting, the Corporate Net Zero Standard (CNZS), with a draft standard set to be published in Q4 this year. One topic which has attracted fierce debate is discussion around whether the standards should permit greater use for carbon offsets for scope 3 emissions – you can read more about this in the previous Briefing.
Calendar
Q4 2024 | SBTi: Draft Corporate Net-Zero Standard V2 Public Consultation
December 2024 | EU Deforestation Law due diligence obligations imposed
Q1 2025 | UK Sustainability Reporting Standards (SRS) published
FY24 reporting | CSRD: EU firms already subject to NFRD (and large non-EU subsidiaries) to report ESRS
FY25 reporting | CSRD: Large private companies to report ESRS
FY25 reporting | CSRD: Non-EU companies (incl. UK) to report ESRS for large subsidiaries
FY26 reporting | ISSB S1 and S2 standards become effective in the UK
FY26 reporting | Transition planning, likely through TPT framework, to potentially become mandatory through UK SRS
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