Swiss food company Nestlé has announced a Forest Positive strategy to help restore and thrive rather than just protect forests for the sustainable prosperity of mankind. To this end, Nestlé investigated how the raw materials of about 8,000 products being produced are affecting deforestation. As a result, 90% of Nestlé's major raw material suppliers, such as palm oil, sugar, soybeans, and meat, were evaluated to have nothing to do with deforestation. Nestlé has stopped deforestation in consultation with raw material suppliers involved in deforestation.
It is noteworthy that during this process, Nestlé utilized satellite imagery of major raw material companies to determine whether the supplier was deforestation. In addition to deforestation-related certification and on-site verification of key raw material suppliers, Nestlé also utilized satellite monitoring services such as Starling and Global Forest Watch. This proves that continuous management of forest damage is possible.
Starring is an artificial satellite jointly developed by Airbus, an aerospace company, SarVision, a satellite and radar company, and The Forest Trust (TFT), a global environmental group. Through high-resolution satellite images and machine learning technology, it has secured a technology to monitor the deforestation status in any environment in the world.
In order to establish a sustainable supply chain, Nestlé first confirmed Indonesia's palm oil production areas and forests with satellite imagery. In 2022, it plans to expand its operation to monitoring not only palm oil, sugar, soybean and meat, but also pulp and paper suppliers and production facilities. It also said that it would gradually strengthen the scope of its application by monitoring the coffee and cocoa supply chain by 2025.
ESG performance impacts executive performance pay (Financial Times)
- As the general shareholders' meeting season and ESG issues coincide, investors focus on linking ESG-related performance to management's performance pay
- In 2016, the AXA Board of Directors had precedent linking the performance of CEO Thomas Bouvet with the performance of the company's Dow Jones Sustainability Index rankings.
According to consulting firm Pay Governance, in 2020, 89% of UK and EU companies will link their ESG-related performance to executive performance pay. US companies account for only 22%
As pay governance focuses on how ESG indicators can help companies achieve their long-term sustainability goals, the gap between countries is expected to close in the next two to three years, for example by including ESG indicators in long-term incentive plans.
- In the 2021 shareholders' meeting season, management's remuneration-related agendas did not exceed 50% in favor
New coal-fired power plants are inefficient as their future value declines (Financial Times)
- According to a study by German think tank Carbon Tracker, 92% of coal-fired power plants to be built or under construction worldwide have a depreciation in the current trend (BAU) scenario, which will cost more to build than future profitability. stated that it takes
- The five Asian countries consisting of China, India, Indonesia, Vietnam, and Japan will build a total of 620 new coal power plants, providing an additional 300 GW of electricity (which accounts for 80% of the world's new coal power plant plans).
- If we analyze the decline in the unit cost of renewable energy and the increase in debt costs, most of the world's coal businesses can achieve immediate cost savings by converting to renewable energy.
- By 2026, maintaining existing coal power plants will be more expensive than converting coal plants
