MESSAGES FROM TRASTA ESG

Dear Readers,

In this edition of our sustainability newsletter, we explore the steps shaping the future of our planet. Drawing insights from Accenture’s “Destination Net Zero” report, we delve into how companies are progressing toward their net-zero goals while highlighting the importance of the 5P classification for a deeper understanding of sustainability. We also emphasize how ESG principles serve as a turning point in our rapidly evolving world and share these insights with you.

The purpose of our newsletter is to share Trasta ESG’s commitment to and belief in sustainability, to maintain our determination to take firm steps toward a sustainable future with our stakeholders, and to accompany you on your journey toward sustainability.

Stay sustainable…

ÖZGÜN ÇINAR, CEO

ESG NEWS

  • The Biden administration has pledged that the US will cut its greenhouse gas emissions by at least 61% over the next decade, Bloomberg reports. This amounts to raising the country’s climate ambition “even as president-elect Donald Trump prepares to obliterate policies key to achieving the target”. DETAIL
  • Montana’s Supreme Court has upheld a decision by its lower court, brought by 16 young activists who argued that state law violated their right to a clean environment, reports BBC News. The lawsuit, raised by 16 plaintiffs aged from five to 22, argued that a state law banning the consideration of climate when choosing energy policy was unconstitutional, it explains. DETAIL
  • Sohar Max, a 400,000 DWT (deadweight) giant ore carrier (VLOC), has made history as the largest vessel to use wind energy technology on a large scale. This innovative technology, provided by UK-based Anemoi Marine Technologies, was implemented by installing five giant rotor sails on the Sohar Max. DETAIL
  • China’s journey toward corporate sustainability reporting has gained momentum in recent years. The Ministry of Finance (MOF), collaborating with nine other departments, unveiled the Basic Standards on December 17, 2024, aiming to standardize ESG disclosures nationwide. DETAIL
  • Work on a new factory in Brazil built by Chinese BYD, one of the world’s leading electric vehicle manufacturers, was halted after it was discovered that Chinese workers were working in “slavery-like” conditions at the construction site. The incident caused a stir regarding the violation of workers’ rights, and BYD severed ties with the subcontractor.DETAIL
  • Methane emissions from oil and gas operations in the Permian Basin decreased by 26% in 2023, according to an analysis by S&P Global Commodity Insights. This reduction, amounting to 34 billion cubic feet (bcf) of methane, is equivalent to 18.5 million tons of carbon dioxide avoided—matching the emissions avoided by all electric vehicles on U.S. roads in 2023.DETAIL

🍃GREEN COLUMN🍃

The Footprints of the Climate Crisis in 2024: The Most Devastating Climate Disasters of 2024

The year 2024 was marked as one of the most striking years in which the effects of climate change were felt worldwide. As the hottest year on record, it revealed the devastating consequences of climate disasters such as floods, hurricanes, droughts, and wildfires. These events highlighted the profound impact of fossil fuels on our planet and the urgent need for action against climate change.

The transition to renewable energy is accelerating, and the costs of clean energy production continue to decline. However, this transition must occur swiftly enough to protect the most vulnerable communities. High-income countries must provide more financing to low-income countries to accelerate the clean energy transition and adapt to the impacts of climate change.

Throughout 2024, the United States faced severe storms during various periods of the year. These storms brought extreme weather events, including sudden temperature changes, heavy rainfall, hail, lightning, and strong winds, affecting much of the country. The storms resulted in the deaths of 88 people and caused economic losses exceeding $60 billion.

In October, Hurricane Milton struck the state of Florida as a powerful hurricane, claiming 25 lives. The hurricane’s heavy rains and floods devastated infrastructure, leaving behind approximately $60 billion in economic damage. Milton also caused significant destruction in the Yucatán Peninsula and the Caribbean.

Another disaster that hit the U.S. was Hurricane Helene, which made landfall in Florida in September and moved northeast. This Category 4 hurricane caused 232 fatalities and $55 billion in damages. The hurricane left widespread destruction with heavy rains and floods, leaving more than 4.7 million people without power.

In June and July, southern and central regions of China experienced some of the most severe rainfall in their history. The resulting floods claimed 315 lives and caused $15.6 billion in economic losses. River overflows and submerged farmlands significantly impacted human lives and the country’s agricultural production.

In Southeast Asia, Typhoon Yagi was recorded as one of the most devastating events of the year. This super typhoon, which struck in September, affected several countries, including the Philippines, Laos, Vietnam, Myanmar, and Thailand. It claimed the lives of over 829 people and caused $12.6 billion in economic damage. The typhoon triggered widespread floods and landslides, leaving millions homeless.

Hurricane Beryl, which occurred in July, swept through the Caribbean Islands and hit the U.S. and Mexico. This Category 5 hurricane caused 70 fatalities and $6.7 billion in damages. In the Caribbean, 70% of buildings sustained damage, and millions of people were left without electricity for weeks. Climate change contributed to the rapid intensification and impact of the hurricane.

In September, Storm Boris struck Central and Eastern Europe, bringing excessive rainfall within a few days. The storm caused widespread flooding in Germany, Poland, the Czech Republic, and other countries, leading to 26 deaths and $5.2 billion in damages. Floodwaters submerged many villages and towns, severely impacting infrastructure and farmlands.

In Brazil’s Rio Grande do Sul state, heavy rains in April and May led to major floods. These disasters claimed 183 lives and resulted in $5 billion in economic losses. The agriculture sector suffered severe damage, with over 100,000 homes affected. Climate change is causing such extreme rainfall events to become more frequent.

In June, heavy rains in southern Germany caused rivers to overflow and triggered floods. In Bavaria, record-breaking water levels forced the region to declare a state of emergency. This disaster claimed six lives and caused $4.45 billion in damages, marking one of the largest losses for insurance companies in recent years.

In October, a flood disaster in Valencia, Spain, brought an entire year’s worth of rainfall within just a few hours. This event, one of the most destructive floods in Spain’s history, resulted in 226 deaths and $4.22 billion in economic losses.

These events not only brought about economic losses but also caused social impacts and humanitarian crises. Vulnerable communities, due to inadequate infrastructure and limited resources, were disproportionately affected by these disasters.

It is crucial for developed, high-emission countries to end fossil fuel-based energy production and accelerate the transition to renewable energy. These countries should cut fossil fuel subsidies and redirect funds toward clean energy and climate adaptation projects. Additional financing is needed in low-income countries to reduce carbon emissions and mitigate the impacts of climate change.

The newly established Loss and Damage Fund requires increased financing to address irreversible damages caused by climate change effectively. Currently, less than $1 billion has been pledged, which is insufficient for meaningful progress. Furthermore, investments in adaptation projects are needed to make communities more resilient to the climate crisis.

The lack of insurance markets in low-income countries creates a significant gap in assessing the economic impact of climate disasters in these regions. Therefore, better data collection systems are needed, especially in developing countries, to measure the economic, social, and environmental impacts of climate disasters. Such data would help better understand international climate finance needs and allocate resources more effectively.

Social protection programs play a significant role in combating climate change. When homes and livelihoods are destroyed, social protection mechanisms support individuals’ lives and accelerate economic recovery. High-income countries must provide debt relief, fair international taxation, and advanced climate financing to enable low-income countries to invest in such systems.

In conclusion, every decision made to mitigate the devastating impacts of the climate crisis will not only affect our lives today but also directly shape future generations. This crisis is a global issue requiring solidarity and urgent action.

LinkedIn