The Sillion Briefing 28.02.2025
In this Briefing...
EU Omnibus – Danone plastics
HSBC target delays – TNFD learning platform
GHG protocol land use – EU EPR
Climate rule frozen – UK energy consultation
EU Omnibus: full proposal now released
The proposal for the EU Omnibus, which significantly changes the scope and content of the EU’s flagship sustainability regulations, is now out.
We wrote a Special Briefing on it on Wednesday which you likely received – you can read this in full here. As ever, be in touch if you want to discuss the implications of what’s being proposed.
Corporate
Danone to disclose plastic packaging data after legal action
Following two years of legal proceedings, Danone has agreed it will publish data on how much plastic packaging it uses and to disclose more information on its plastic-related risks. The French food and drinks company was taken to court in January 2023 by environmental law firm Client Earth and NGOs Zero Waste France and Surfrider. The grounds were Danone was breaking requirements under the French Duty of Vigilance law by failing to publish a comprehensive vigilance plan addressing the environmental and social risks of its operations, suppliers, and subsidiaries. Four commitments have been given by Danone. It promised:
An update in its diligence plan of the various risks related to the use of plastic
The strengthening of a policy for mitigating and preventing the risks associated with the use of plastic, with emphasis on reuse solutions
The publication of its plastic footprint
The holding of a meeting each year from 2025 to 2027 between ClientEarth and its partners, and Danone.
HSBC delays 2030 emissions targets by 20 years
HSBC has delayed its target to achieve net-zero emissions across its operations and supply chains from 2030 to 2050. This shift follows a broader retreat from sustainability commitments, including the removal of Chief Sustainability Officer Celine Herweijer from the executive board in October. In its annual report, HSBC confirmed it is on track to reduce direct emissions (Scopes 1 and 2) by 90% by 2030, thanks to investments in energy efficiency and renewables. However, the bank faced difficulties addressing Scope 3 emissions, citing insufficient global progress, supply chain challenges, and limitations on carbon offsets as reasons for the delay.
Disclosures
TNFD launches learning platform
The Taskforce on Nature-related Financial Disclosures (TNFD) has published a new “capacity-building platform”, featuring learning and training modules targeted at businesses who are looking to progress towards TNFD alignment. Given the relative complexity of the framework, many businesses approach their first alignment working with an external partner – so do be in touch with Sillion if you’d like to talk things through. You can find the platform here via TNFD’s knowledge hub.
GHG Protocol delays land use guidance
The Greenhouse Gas Protocol, provider for the most widely used emissions calculation standards, has delayed its ‘Land Sector and Removals’ guidance after the advisory committee failed to reach an agreement on forest carbon accounting. A new working group has been set up in the organisation to address the issue, with the guidance now due to be published in Q4 this year (originally Q1). This is likely to mainly be of interest to any companies which own forested land, including those in timber & forestry, agriculture, and food and beverages who would have to use this guidance for GHG reporting.
One Number: 6.8 trillion yuan
China invested 6.8 trillion yuan ($930 billion) in renewable energy last year (Carbon Brief), primarily focusing on the electric vehicle, battery, and solar sectors. This figure is strikingly close to the global fossil fuel investment benchmark of $1.12 trillion (8.2 trillion yuan).
Policy and regulation
EU’s Extended Producer Responsibility to crack down on food and textile waste
The EU isn’t all regulation cutbacks these days – this week also saw Extended Producer Responsibility (EPR) introduced for food waste and textiles. EU countries will have to establish EPR schemes which ensure a 30% reduction per capita in food waste compared to 2023, and to ensure producers that make textiles available in any EU country cover costs for their collection, sorting and recycling. This could have potentially significant implications for ecommerce platforms (read: ‘fast fashion’) in particular, as within the rules online retailers, including those based outside the EU but selling inwards, will be subject to these obligations.
US SEC’s Climate Rule frozen by new administration, as expected
The US Securities and Exchange Commission, now headed by Trump pick Mark Uyeda, has paused its defence to the legal challenges brought against its ‘Climate Rule’. While this doesn’t immediately end the rule, it signals the end of efforts to implement it – with Uyeda having called the Rule, which would mandate US companies to disclose on emissions and climate-related risks, “deeply flawed”. Controversial from its inception, previously watered down, and subject to multiple legal challenges, the Climate Rule would have taken concerted efforts from the SEC to push through.
Energy
AR7: UK Government consultation on offshore wind projects reforms
The UK government has launched a consultation on proposed reforms for this year’s AR7 Contracts for Difference (CfD) auction, aiming to pave the way for more offshore wind projects. The suggested reforms aim to ease the eligibility requirements for planning consent related to fixed-bottom offshore wind projects, and modifying the process for setting and releasing offshore wind budgets, allowing for more efficient allocation of funds. Also considered is extending the duration of CfD contracts beyond the current 15 years to boost the cost-effectiveness of renewable energy agreements. The consultation is open until 21 March 2025, while the AR7 is set to open in Summer 2025. So far, six CfD auctions have taken place, with a range of renewable technologies vying for contracts. The AR6 auction held last year set a new record, attracting 128 renewable energy projects with a combined capacity of 9.6GW, sufficient to power approximately 11 million homes.
The Short List
Allbirds has introduced what it claims is the world’s first net zero carbon shoe without offsets. (Link)
Maybelline, Kraft Heinz, and Procter & Gamble have partnered to enhance the recycling of small plastic items like bottle caps and lotion pumps. (Link)
Kingspan has exceeded its target to recycle one billion plastic bottles annually into insulation products. (Link)
And Keenan Recycling has become the first UK waste recycling company to have its baseline greenhouse gas emissions verified by the British Standards Institution (BSI). (Link)
Calendar
2025
UK SRS: UK Sustainability Reporting Standards (SRS) published – Q1 2025
UK SDR: UK Sustainability Disclosure Requirements (SDR) rules on labelling of sustainability-focused funds to come into force – April 2025
ESMA: ESMA Guidelines on fund names using ESG or sustainability-related terms to apply to funds which existed before the rule change – 21st May 2025
London Climate Action Week 2025 – 21st-29th June 2025
New York Climate Action Week 2025 – 21st-28th September 2025
COP: COP30, Belém, Brazil – November 2025
SBTi: Corporate Net-Zero Standard (CNZS) V2.0 to come into force – by end of 2025
2026
UK SRS: UK listed companies need to begin work on their IFRS Sustainability Standards (ISSB Standards) and transition plan reporting, in order to be ready for next year
2027
UK CBAM: UK Carbon Border Adjustment Mechanism (CBAM) comes into force, initially addressing aluminium, cement, fertiliser, hydrogen, iron and steel. 1st January 2027
UK SRS: UK Sustainability Reporting Standards (SRS) to become mandatory for FY26 reporting, making the IFRS Sustainability Standards S1 and S2 (the ISSB Standards) and transition plan reporting mandatory – FY26 reporting
2029
CSRD: Non-EU undertakings with EU branches / subsidiaries must report ESRS for the previous business year. This applies if the non-EU undertaking has a net turnover generated within the EU above €450 million, and if it has either subsidiaries that are large undertakings or SMEs (CSRD definitions of these are given in the calendar above) with securities traded on an EU market; or if it has branches with net turnover generated in the EU above €50 million – 1st Jan 2029
Questions on the above? Contact hello@sillion.co.uk with any queries, comments or feedback.