The EY Sustainability Matters podcast

As more businesses focus on net-zero targets, voluntary carbon markets (VCMs) need to play an increasingly crucial role. The VCMs are a necessary and important tool for offsetting hard-to-decarbonize emissions, and there is a vital need to scale them; however, there are many challenges in their current state. In this episode of the Sustainability Matters podcast, Bruno Sarda and EY Sustainability Global Account Lead for Microsoft, Alissa Byersdorfer, examine the VCMs’ growth and how they needs to evolve with Brian Marrs — Senior Director for Energy and Carbon Removal at Microsoft. Bruno sets the scene with a brief history of the VCMs and carbon as a commodity. He shares that VCMs are growing and are now a key component of many businesses’ decarbonization strategies but there are some significant challenges around credibility and quality. Alissa explains how the alliance between Microsoft and the global EY organization helps other businesses achieve their own decarbonization goals through sustainable strategies and data management solutions. With a commitment to becoming carbon negative by 2030, Microsoft is a pioneer in this space. Brian discusses the challenges Microsoft has faced and how the VCMs need to evolve to focus more on quality carbon removal products. Brian covers why Microsoft’s strategy is solely focused on investing in carbon removal programs and how they have approached the challenges of the carbon market with their four north stars on quality. Lastly, Brian shares some first-hand advice for companies exploring VCMs to achieve their net-zero goals. © 2024 Ernst & Young LLP

In this episode of the EY Sustainability Matters podcast, the spotlight is turned to the often underestimated impact of the global building and materials industry, specifically cement production, on climate change. Despite playing a crucial role in our everyday lives, this industry's significant contribution to global greenhouse gas emissions and extensive energy and natural resource consumption is often overlooked. Host Bruno Sarda is joined by EY Latin America Climate Change and Sustainability Services leader Ruth Guevara and Vicente Saiso, Global Vice President of Sustainability at CEMEX, a global leader in the building materials industry, to talk about bold decarbonization strategies in such an important sector. Vicente acknowledges the cement industry’s significant contribution to global emissions but highlights its efforts to reduce its environmental footprint, mentioning key strategies involving alternative fuels, use of waste materials, and adoption of innovative technologies such as hydrogen in production processes. He explains how, through this process to decarbonize, CEMEX has found business opportunities and cost benefits. Ruth and Vicente discuss the role of waste management in creating a circular economy in the cement industry. Vicente shares how CEMEX turned waste repurposing into a business opportunity by providing services to construction customers to manage their construction and demolition waste, which contributes significantly to global waste management. The episode then explores the innovative and ambitious technologies CEMEX is pursuing to help them play the opposite role and actually reduce environmental impact through cement production. Lastly, the guests shed light on how stakeholder support is crucial for companies' decarbonization initiatives.  © 2024 Ernst & Young LLP

In this episode of the EY Sustainability Matters Podcast, host Bruno Sarda discusses with Mary de Wysocki, Chief Sustainability Officer at Cisco, how companies can leverage technology for a more sustainable future. The intersection between business, technology and sustainability is accelerating, with companies increasingly digitizing their operations. This can significantly reduce waste, energy and materials required to deliver products and services. However, de Wysocki warns that if digital transformation is not done in a sustainable manner, it could have a damaging effect on our planet due to the large energy needs of cloud service providers and data farms. Companies need to integrate sustainability into their digital transformation strategies and harness the value of data to drive these initiatives. De Wysocki also emphasizes the importance of deploying emerging technologies like Artificial intelligence (AI) and automation responsibly, considering the social dimensions such as ethics, privacy information, security, digital equity and human rights. Cisco is already embedding sustainability into its operations and moving towards a regenerative, green future. They have set three priorities in its environmental strategy - accelerating the transition to clean energy, evolving the business from linear to circular, and investing in resilient ecosystems. Cisco is also working on developing a data strategy to create consistent sustainability data across the enterprise, with rigorous reviews to ensure reliability and trust. De Wysocki concludes by highlighting the importance of partnerships and collaboration for achieving sustainability goals and emphasizes the need for inclusivity and a healthy planet for future generations. Key takeaways include: Digital technologies, like AI and automation, have the potential to transform the environmental impact of companies, reducing waste and lowering energy use. There are environmental impact risks posed by intensive energy users like the Information and Communications Technology sector and cloud service providers if not powered by clean energy. Sustainability needs to be integral to business strategy, with an emphasis on a “regenerative future”. Challenges include managing greenhouse gas emissions, addressing digital equity issues and appreciating the role of nature-based solutions in mitigating climate change. Companies should increase their commitment to transparency and accountability, and look to create partnerships in their value chain. © 2024 Ernst & Young LLP

Thought leaders, global decision-makers and policymakers will be convening in Dubai in late-November for the UN Climate Change Conference, or COP28, to assess and address the state of global affairs on the climate agenda. In this episode of the EY Sustainability Matters podcast, host Bruno Sarda is joined in person by Amy Brachio, EY Global Vice Chair for Sustainability, and Matt Bell, EY Global Climate Change and Sustainability Services Leader. They explore COP28 and the importance of the first-ever Global Stocktake - a checkpoint discussion on the progress made since the Paris Agreement adoption in 2015. With just seven years left to cut emissions by half and limit global warming by 1.5 degrees Celsius, the world has reached a pivotal moment in the fight against climate change. Amy and Matt share their views on the possible learnings from the Global Stocktake, as well as on the business and government perspective of COP28, and why it is so vital for those stakeholders to be represented there. With a record number of people - 90,000 - set to attend the summit, the podcast looks at the progress since last year’s COP. It also explains why, in these tumultuous times with one global crisis following another, more voices outside of governments must be part of the dialogue on climate change. The guests end on a hopeful note agreeing that the upcoming COP28 is likely to bring more positive outcomes and cross-sector collaborations. Key takeaways include: COP28 includes the first Global Stocktake to assess progress to address and adapt to climate change on a country-by-country level. The dialogue and collaboration between government and business across sectors are vital for meaningful progress. Recent extremes in climate have created more urgency for the transition to a low-carbon economy. New reporting standards are driving greater transparency and accountability. Global tensions, economic uncertainty and political landscapes impact progress, but businesses are still driving climate action through net-zero commitments. EY and other businesses attending COP28 are looking to have an authentic impact and play a role in driving meaningful action. © 2023 Ernst & Young LLP

As businesses prepare to meet the growing demand for transparency in emissions reporting, the Science Based Targets initiative (SBTi) is leading the way in setting global standards for climate target setting. In a recent episode of the EY Sustainability Matters podcast, host Bruno Sarda is joined by Alberto Carrillo Pineda, cofounder and CTO of the SBTi, and the two members of the EY Climate Change and Sustainability Services, Rob Bradley, Managing Director, Ernst & Young LLP, and Miranda Nayyar, Manager, Ernst & Young LLP. Setting, reporting and delivering on credible climate targets is becoming increasingly important as mandatory climate regulations come into effect. EY teams and the SBTi are collaborating in this area to support clients in committing to and setting science-based targets, and in developing decarbonization pathways to meet these goals. The EY organization and the SBTi recently co-authored research on the landscape of corporate measurement, reporting and verification related to science-based target setting, which is available to read (SBTi-EY-Landscape-Analysis-of-Measurement-and-Reporting-of-Science-Based-Targets.pdf (sciencebasedtargets.org)). Pineda emphasizes that the SBTi’s focus is on setting the global standard for science-based climate targets to promote accountability and transparency. The speakers address the challenges companies face in climate target setting, particularly in gathering robust data and achieving set targets. The discussion also explores the impact of emerging climate disclosures, such as the Corporate Sustainability Reporting Directive (CSRD) and the U.S. Securities and Exchange commission (SEC), and how companies can prepare for these.  Looking to the future, Pineda is optimistic about the actual implementation, and notes that the SBTi standards will continue to evolve. Key takeaways include: The importance of setting climate targets has increased, and with more companies making public disclosures, issues of standardization have arisen. The SBTi is evolving standards to provide a globally standardized way to set climate targets and assess decarbonization progress. Setting of targets should go hand in hand with a robust decarbonization strategy to deliver on commitments. Key challenges are data collection and access to data across the value chain. The SBTi is moving toward a formal standard-setting structure and remains dedicated to continuously evolving and revising their standards to ensure alignment with the most up-to-date scientific research and evidence. © 2023 Ernst & Young LLP

The necessary transition away from fossil fuels toward clean energy can be extremely disruptive for people and communities reliant on fossil fuel plants and mines for jobs. How can the power generators support these communities and achieve a just transition to a cleaner energy future? In the latest episode of the Sustainability Matters podcast, host Bruno Sarda, Principal at Ernst & Young LLP and Shannon Roberts, CCaSS Power and Utilities Leader at Ernst & Young LLP, interview Sandy Nessing, Vice President and Chief Sustainability Officer at American Electric Power (AEP) about how the company is developing a new model for a just energy transition.  Nessing points out that the current economy is heavily fossil fuel-dependent, so the green energy transition has to be implemented thoughtfully to avoid severe social and economic risks. People reliant on the plants and communities built around them should be considered when driving the energy transition. Nessing shares an example of AEP’s Pirkey Plant in the US, in the process of being decommissioned. She gives listeners insights into how AEP created a transition task force and engaged with community leaders to help mitigate the impact on the local people. Both Roberts and Nessing agree that power plants form their own unique social and economic ecosystems, and a proper, just transition requires thoughtful intention and may take a long time. Hence the importance of early planning, including engagement and collaboration with communities, and retaining and leveraging partnerships with stakeholders in the company’s value chain. Key takeaways include: The transition to cleaner power generation should involve supporting communities dependent on the fossil fuel industry. Green energy transition impacts people not just in the industry itself, but also those in the supply chain and regional economy. Engaging with leaders from every area of the community is vital: from local politicians to school superintendents. The top priority of a just transition should be to keep people, taxes and jobs within the same region. Planning ahead is vital to allow time for a proper just transition in full collaboration with local communities. © 2023 Ernst & Young LLP

Each year, the world produces 300 million tons of plastics, however, just 20% of it ends up back for recycling, with even less actually getting recycled. As plastics are an important part of improving the quality of life for a growing population and aren’t going anywhere, how can we solve the plastics crisis with circular solutions? And how can major plastics companies play a leading role in the solution? In the latest episode of the Sustainability Matters podcast, we look specifically at the case of Eastman Chemical Company’s commitment and investment in circular solutions to help address the plastics crisis. Host, Bruno Sarda, and Velislava Ivanova, EY Americas Chief Sustainability Officer, and Climate Change and Sustainability Services Leader, are joined by Brad Lich, Executive Vice President and Chief Commercial Officer at Eastman, to discuss Eastman’s innovative approach to closing the plastics value chain loop. Lich begins the discussion by explaining why circularity is a core part of Eastman’s business strategy and what it means to their business. He explains the importance of recycling in closing the loop in the value chain, focusing on molecular recycling and how it complements traditional mechanical recycling. Lich stresses that the innovation to solve the plastics and recycling problem isn’t decades away, it is happening today through these circular and innovative solutions. Lich and Ivanova discuss how no single company or industry can find solutions to the plastic pollution crisis on their own. The key for any industry wishing to move toward a circular model is to develop collaborations and partnerships. Key takeaways include: Adopting circular production is key to managing waste and tackling climate change. Innovation to make plastics truly circular isn’t decades away, it is happening today. Demand for circular solutions in the plastics industry is rising, as customers push for greener products. Molecular recycling complements traditional mechanical recycling by addressing its shortcomings and avoiding end-of-life. New innovative recycling technologies lower greenhouse gas impact in comparison to traditional processes. Collaboration and co-innovation among companies, NGOs and regulators is essential to drive investments and find solutions. No company can do it alone. © 2023 Ernst & Young LLP

There are various decarbonization frameworks designed for heavy industries, but what about the less obvious emitters like the service sector?  How can they standardize emissions measurement and set out on the road to decarbonization? In this episode of Sustainability Matters, we look specifically at the advertising and media sector and the challenges companies have faced in decarbonizing their supply chains. Host Bruno Sarda and EY CCaSS Senior Manager Charlotte Pugh are joined by Ollie Joyce and Alexandra McGee from marketing services leader WPP, which is at the forefront of efforts to establish an industry-wide carbon measurement framework.  Ollie and Alexandra explain how developing a standardized approach to measuring carbon emissions is a complex but necessary step for the media industry to achieve ambitious net-zero targets.  They discuss how WPP’s proposed global framework for measuring the ad-based carbon emissions and their media decarbonization coalition seek to create alignment with industry players. Ollie and Alexandra discuss how media placement generates a significant carbon footprint and clients are questioning the emissions of the platforms they appear on. While emissions will never be the sole factor in media placement decision-making, the guests think that media investment will shift to publishers and platforms that decarbonize fastest. This has business advantages, as greater transparency may improve the media environment and deliver lower emissions. Finally, Ollie and Alexandra talk about the lessons other industries that lack a standardized approach to decarbonization can learn from the media industry’s experience, and how real change can be achieved from incremental gains. Key takeaways include: There is a new resolve within the advertising industry to reduce its carbon footprint. Existing GHG protocols can be difficult to interpret for the service sector and this complexity in measurement creates a roadblock for action. Industry-wide collaboration is key to establishing standardized emissions measurement in complex service sector value chains, such as the media sector. Emissions data is becoming an increasingly important factor in media placement decisions. Making carbon a factor in media decisions may reduce waste in the media supply chain and improve the media environment. Decarbonization efforts can correlate to business and workforce benefits. © 2023 Ernst & Young LLP

The current global nonfinancial disclosures landscape is highly fragmented with a variety of different bodies evolving reporting frameworks. Will the new ISSB standards accelerate their convergence into mandatory globally accepted ESG reporting standards? In the final episode of the miniseries on disclosures, host Bruno Sarda is joined by Terence Jeyararetnam, EY Asia-Pacific Leader and Partner, Climate Change and Sustainability Services at Ernst & Young (the Partnership), and a member of the ISSB’s Technical Reference Group. The discussion begins with the analysis of the different frameworks already in existence from the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB) and others. Many businesses have already adopted these, but there is pressure from regulators, investors and other stakeholders for frameworks to be standardized and mandated. Voluntary reporting is not taking businesses far enough to reduce their impact on climate and nature. The ISSB has an important role in accelerating this, and the hosts discuss whether the aggressive timeline for introducing the ISSB standards is realistic, what resistance is likely and what the prospects are for global acceptance. They also talk about how the new standards from the US SEC and the EU CSRD frameworks will fall into the picture. Companies should prepare for a potential new reality, where ESG reporting could be as rigorous and mandated as financial reporting. Bruno and Terence discuss the need for culture change and the key role of the CFO in gathering and managing the ESG data. © 2023 Ernst & Young LLP

In the second of our series-of-three Sustainability Matters podcasts dealing with environmental, social and governance (ESG) disclosures worldwide, our host Bruno Sarda focuses on biodiversity and the Taskforce on Nature-related Financial Disclosures (TNFD). He is joined by two members of the Taskforce: Marine de Bazelaire, Group Advisor on Natural Capital, HSBC, and Alexis Gazzo, Leader, Climate Change and Sustainability Services in France at EY & Associés The discussion begins with the urgent need to tackle the loss of biodiversity that threatens global economy. The Kunming-Montreal Global Biodiversity Framework (GBF), which came out of the recent UN Biodiversity Conference, COP 15, aims to halt and reverse nature loss by 2030. As businesses and their stakeholders start to recognize biodiversity as a business priority, and begin to consider their impact and reliance on nature, there will be an increasing need for transparent natural capital disclosures to help achieve these global biodiversity targets. This is where the TNFD comes in. Marine discusses the importance of addressing nature-related issues and halting nature loss to achieve a net-zero future. She also highlights how financial institutions are becoming more engaged piloting the TNFD beta framework and gives a fascinating insight into how HSBC is preparing for future nature-based disclosures. Alexis talks about the TNFD and how it is seeking to address the challenges facing biodiversity, including how companies can begin to prepare for reporting. He discusses practical steps to take, and how EY teams can help companies identify areas of exposure to biodiversity-related risks. © 2023 Ernst & Young LLP

In the first of a series of three Sustainability Matters podcasts dealing with ESG disclosures worldwide, we put the spotlight on Europe and the new Corporate Sustainability Reporting Directive (CSRD for short). Bruno Sarda is joined by Dr. Christian Orth, EY Global Solution Leader for Sustainability Reporting and Assurance, and Elodie Timmermans, EY Americas Nonfinancial Reporting Assurance and Advisory Leader, who looks at the implications for businesses in North America. What is the CSRD and what is it trying to achieve? Christian guides us through the many acronyms involved and gives his insight into the evolution of ESG disclosures in Europe. The new directive is a vital component of the European Green Deal which seeks to make the EU the world’s first carbon-neutral trading block. The guests discuss the huge increase in the number of businesses that will be affected and the compliance timelines. The CSRD won’t only affect European enterprise. Elodie outlines implications for non-EU businesses that have subsidiaries or operations in the EU. The guests also discuss how the CSRD aligns with other global initiatives such as the ISSB and SEC. Businesses will need to prepare for a new age of sustainability disclosures. ESG reporting will not simply be the domain of the Chief Sustainability Officer, but the entire enterprise will need to become aligned to sustainability goals and disclosures. Implementation will have a major impact on operations and the time to set up steering committees and working groups is now. Key takeaways The CSRD is an important part of delivering the European Green Deal - the journey to a carbon-neutral Europe. It encompasses not just climate change but broader Environmental, Social and Governance metrics. It will dramatically increase the number of businesses who are subject to mandatory ESG disclosures from 15,000 to over 50,000. CSRD will impact non-EU companies, called Third-country companies, that have substantial activity in the EU. Businesses should prepare now, aligning finance and sustainability teams and involve the C-suite. Successful reporting needs a holistic approach that involves the entire organization. © 2023 Ernst & Young LLP

The COP27 climate conference in Egypt was billed as 'The African COP' with the promise that it would give a voice to the developing world as it wrestles with climate change. Did the conference succeed and has it found a way ahead that addresses the differing agendas of the world's developing nations?   Fresh from the conference, Clémence McNulty, Ernst & Young Advisory Services (Pty) Ltd, Africa Sustainability Lead, and Ricardo Assumpção, Ernst & Young Assessoria Empresarial Ltda, Latin America South ESG Leader, join Bruno Sarda to discuss the successes and shortcomings of the conference for their regions.   From an African perspective, Clemence discussed the importance of the private sector’s participation but that the solutions need to be localized, with local municipalities and governments playing a key role.  For Latin America, Ricardo noted how COP27 was important in highlighting the unique assets Latin America has to create more value and the great potential of the carbon markets.  All agreed that the world is increasingly looking to the Global South to take a fuller part in the debate and play a more prominent role. Even with potentially imperfect outcomes, COP27 has further driven conversation and understanding of what needs to be achieved by all parties involved.  Key takeaways The Loss and Damage Fund is an important step forward in addressing the disparity between northern and southern hemisphere resources.  The private sector is likely to provide more and more financial and technological solutions. This was reflected in their presence at COP27.  Blended finance from both the public and private sector is key for addressing the Just Transition and closing the funding gap.  COP27 restated the connection between climate change and biodiversity, emphasizing the importance of the rainforest.    © 2022 Ernst & Young LLP

In a changing geopolitical environment, how can organizations stay true to their sustainability and environmental, social, and governance (ESG) goals? In this episode of Sustainability Matters, Bruno is joined by Matt Bell, EY Global Climate Change and Sustainability Services (CCaSS) Leader. Together, they explore the megatrends that will likely impact businesses over the next ten years, and the potential challenges businesses may face as they navigate the choppy waters of economic downturns, global conflict and forced regulations. In particular, Bruno and Matt discuss the evolving role of the Chief Sustainability Officer (CSO), and the responsibility for CSOs to look beyond short-term objectives and lead the C-suite in staying true to sustainability ambitions.  As more businesses begin to explore how environmental impact goes hand in hand with impact on people, how can they look beyond nonfinancial disclosures to drive organizational change? Additionally, how can businesses not only adhere to compliance standards, but go beyond to embrace sustainability and ESG throughout their corporate culture?  Matt and Bruno discuss the practical steps that businesses can take, and some of the ongoing CCaSS initiatives that can help clients achieve their sustainability goals. Finally, Matt also shares his thoughts for people looking to make sustainability a career and how everyone, regardless of their job role, can contribute.   Key takeaways include: CSOs and sustainability professionals should look beyond immediate performance to steer organizations on a long-term path to sustainability. Focusing on the social dimension of sustainability, and corporate impact on society as well as the environment delivers corporate value. Nonfinancial reporting is expected to achieve the same level of importance as financial reporting, which means that every area of the business should embed sustainability into their agenda. Global downturns, conflicts and financial crises are unlikely to interrupt ESG initiatives and can potentially accelerate them as organizations look at new business models and alternative energy sources. For your convenience, full text transcript of this podcast is also available. Read the transcript.   © 2022 Ernst & Young Global Limited

Environmental, social and governance (ESG) is quickly becoming mainstream, but corporates may find it difficult to tackle ESG with siloed efforts toward E, S and G. As more organizations prioritize human capital, racial equity and talent development, a new focus on the S — the social factors within ESG — is beginning to take shape. But how are enterprises responding to these challenges, and what can be said about the current state of transparency and measurement when it comes to reporting on these social factors?   In this episode, Bruno Sarda, Climate Change and Sustainability Services Partner at Ernst & Young LLP and Senior Manager Lucy Godshall are joined by Emily Bayley, Head of ESG, Private Sector at the World Economic Forum (WEF), and Ebony Thomas, Racial Equality and Economic Opportunity Executive at Bank of America. They discuss the focus that employees and institutional investors are placing on diversity, inclusivity, training, and health and safety. Finally, the importance of corporate culture and the potential impact on the bottom line. Key takeaways include: The social factors in ESG are likely to become more important to investors and stakeholders. A strong focus on social factors can help to retain talented employees and subsequently have a direct impact on an organization’s bottom line. Organizations with strong social credentials will likely be better positioned to weather difficult times and business conditions. Stakeholders are looking for social metrics to be included in nonfinancial disclosures to help better measure and compare performance. The global business community is collaborating with public and private bodies to develop new metrics.   © 2022 Ernst & Young LLP

The theme of Earth Day 2022 is “invest in our planet” — and can be seen as a direct call to businesses and investors to act on reducing their adverse environmental impact. In the lead-up to Earth Day, Jennifer Leitsch, Managing Director in the  Climate Change and Sustainability Services (CCaSS) practice at Ernst & Young, LLP, spoke to Cynthia Curtis, Senior Vice President for Sustainability at JLL, about the challenges and opportunities of ambitious net zero goals, and the actions the real estate and construction sector, a significant contributor to greenhouse gas emissions,[1] should take now to achieve them. Earth Day 2022’s thematic shift from citizen activism to corporate action poses some important questions on industry actions and accountability. While carbon offsetting can often be described as one of the answers to a business’s carbon emissions, it is unlikely to be the only solution. And as offsetting measurements come under increased scrutiny, how can proposals such as the “Carbon Credit Quality Initiative,” spearheaded by the World Wildlife Fund and the Environmental Defense Fund, help provide confidence in credible and verifiable offsets? The collaborations among organizations can be an important step toward reaching net zero emissions. Public-private partnerships, governments and long-term policy changes could also be important to building a low-carbon economy, and helping incentivize more green business practices that are both ethical and lucrative. Many industries are increasingly aware of the possibility to have a sustainable and thriving business. Cynthia and Jennifer discuss why it’s time for businesses of all shapes and sizes to act: Tackling climate change has become less about individual activism and more about corporate action. Global ambitions of carbon neutrality have led to an increase in carbon offsetting, prompting a greater need for a standardized calculation system. Offsetting can be part of the solution. Market-based guidelines, such as carbon tax, could significantly accelerate change across global business. Public-private partnerships can be important in building the low-carbon economy. While the real estate and construction sector has lagged in setting ambitious emissions targets, third-party organizations could be important to supporting responsible growth in the sector. © 2021 Ernst & Young LLP

Looking ahead into 2022, the Sustainability Matters podcast welcomes Bruno Sarda, Climate Change and Sustainability Partner with Ernst & Young LLP and new host for the EY Sustainability Matters podcast series, chronicling the recent prioritization of environmental, social and governance (ESG) and the need for greater ESG integration into investor decision-making and corporate strategy. In this episode, Bruno reflects upon the series to date, highlighting key ESG issues, along with ways businesses can prosper while working harmoniously with the environment and society at large. Bruno showcases three personal highlights from previous episodes and their continued relevance today: Susan Hunt Stevens of WeSpire on engaging employees in ESG Steve Bradley of Cox Cleantech on building an enterprise through sustainability Steve Varley, EY Global Vice Chair of Sustainability, on the outcomes for business of the COP26 forum. Finally, Bruno looks ahead to the next 12 to 24 months, and the issues that could inform the ESG agenda: the increase in regulation and reporting obligations, the role of private capital and finance, and the effect of the COVID-19 pandemic as a dress rehearsal for the disruption to global economies that climate change could bring. Bruno also discusses the importance of the social aspect of ESG and how diversity and inclusion are set to remain prominent issues. The crucial catalyst for change is the move from ambition to action in transitioning to low carbon business models. The implementation of increased regulation and disclosure requirements will likely be strong motivators for change. The private sector and private capital should take a leading role in financing this transition. The COVID-19 pandemic appears to be accelerating a change toward new business models and that could make organizations more adaptable. The increased focus on racial, gender equity and diversity & inclusion (D&I) issues is likely to continue to gain prominence alongside the environmental debate.   © 2021 Ernst & Young LLP

The eyes of the world were on the 2021 United Nations Climate Change Conference – COP26. With the dust settling and negotiations in place, what progress was made in adhering to the 1.5℃ goal of The Paris Agreement? This episode of the EY Sustainability Matters podcast, features Steve Varley – EY Global Vice Chair for Sustainability. Steve was in Glasgow to attend COP26 and in this episode of the podcast, he discusses the experience of being at the conference in person, the likely impact of the discussions, the actions that should be taken to reduce emissions globally and the part everyone – including business – can play. The coming together of nations was a cause for great optimism, but the reality is that there is still more work to be done to keep the 1.5oC dream alive. This means that commitment and collaboration between nations, governments and business will likely be critical, and could need further progress on trust and transparency as a priority. Some businesses are actively and enthusiastically addressing environmental, social and governance (ESG) by innovating and adapting their business model, and providing customers with a more sustainable offering. Other businesses view ESG as less of a priority, so finding a way to demonstrate the value of sustainability and moving climate change to the top of the agenda could be crucial. For Steve, COP26 is a cause for optimism, creating an atmosphere of ambition and providing an opportunity to take meaningful action. © 2021 Ernst & Young LLP

In this episode of the EY Sustainability Matters podcast, Chris Hagler meets with Antonis Mavropoulos, author of “Industry 4.0 and the Circular Economy” and CEO of D-Waste, along with Mark Weick, Managing Director of Climate Change and Sustainability Services (CCaSS) for Ernst & Young LLP, to find out more about the circular economy, and how its union with Industry 4.0 could revolutionize waste management and help contribute to a more sustainable planet.  Most organizations recognize the need to create a more circular economy, but do they truly understand the concept? Are they willing to change their business model to leverage the opportunities? And do they have the leadership and teams required to meet the challenge? There’s also much to think about outside of the environmental challenges that most organizations consider to be the definition of a circular economy. Some subject-matter experts suggest it can be better thought of as the transformation of the whole supply chain, and the inclusion of societal and governance issues. The integration of these aspects could help make businesses more resilient and less wasteful. For Antonis and Mark, this is a chance to reshape thinking on how to tackle climate change. And that shape, is circular. © 2021 Ernst & Young LLP

The use of plastics has grown significantly in the past 50 years. Plastics are a versatile material that are a part of many household and industrial products. Unfortunately, plastic waste in the environment has also grown, particularly in the oceans, threatening natural ecological systems. One organization looking to tackle the plastic waste problem is Dow. As a materials science company and large manufacturer of plastics, Dow is using its expertise to design systems and technology to enable the use of complex plastic waste as well as support the collection of plastic waste. In this episode of Sustainability Matters podcast, host Chris Hagler welcomes Jeff Wooster, Global Sustainability Director for Dow Packaging and Specialty Plastics, and Jamie Mattison, Senior Manager in EY’s Climate Change and Sustainability Practice. Together, they discuss actions that businesses can take to enhance the plastics value chain, supporting increased collection rates with the manufacturing of materials from plastic waste. © 2021 Ernst & Young LLP    

Podcast host Chris Hagler is joined by guests Ann Meitz, Vice President of Sustainability and Packaging Innovation at 3M and Mark Weick, Managing Director in EY’s Climate Change and Sustainability Practice, and circular economy services lead. Together they discuss opportunities for circular transformation including product design, material sourcing, reselling byproducts, right-to-repair, and end-of-life management. The global production and use of food and consumer goods has a large impact on our environment and is anticipated to experience a tremendous increase. One study estimates that the growth of the global middle class by 2030 will result in consumers adding the equivalent of a second United States to global consumption. 3M is one consumer products business that is pursuing innovative changes to manufacturing and design to advance the circular economy. By thinking holistically about the impacts of manufacturing and product changes, 3M has shown that it is possible to reduce waste while achieving characteristics like enhanced product performance and even elevated end user efficiency. ©2021 Ernst & Young LLP