Fujitsu and Microsoft Announced a Partnership for Sustainable Innovation
This week was marked by significant developments in the ESG landscape, with a mix of breakthroughs and setbacks. From strategic alliances aimed at driving sustainable transformation to political pressures impacting climate-focused alliances, the week was a testament to the dynamic and complex nature of ESG policies worldwide.
Fujitsu Limited and Microsoft Corporation announced a strategic partnership to drive the growth of Fujitsu's Uvance business, focusing on innovative solutions that address both business challenges and societal issues.
Major Insurers Withdraw from Net Zero Insurance Alliance Amidst U.S. Political Pressure.
MSC Cruises announced its plan to operate the first-ever net-zero cruise, powered by bio-liquefied natural gas (LNG).
Watershed, a leading enterprise climate platform, announced a strategic alliance with KPMG LLP, a global leader in audit, tax, and advisory services.to empower companies to measure, disclose, and reduce emissions amidst increasing regulatory, customer, and investor pressures.
The US Inflation Reduction Act (IRA) is fostering an innovative approach to making ESG more acceptable in Republican-run US states.
The week's developments underscore the complexities and opportunities in the ESG landscape. While challenges persist, the strides made in sustainable transformation, climate action, and clean energy projects highlight the potential for progress. As we move forward, the interplay of policy, innovation, and collaboration will continue to shape the future of ESG.
Fujitsu and Microsoft: A Strategic Alliance for Sustainable Transformation
Fujitsu Limited and Microsoft Corporation have announced a strategic partnership, marking a significant expansion of their existing collaboration. This five-year partnership aims to drive the growth of Fujitsu's Uvance business, focusing on innovative solutions that address both business challenges and societal issues.
The partnership will involve both companies investing in co-developing and deploying sustainability transformation-focused cloud solutions across various sectors, including manufacturing, retail, healthcare, and public sectors.
The companies aim to leverage Fujitsu's Uvance business and the Microsoft Cloud to help organizations become more sustainable and better address societal challenges while driving business growth. The focus areas include Sustainable Manufacturing, Consumer Experience, Healthy Living, and Trusted Society.
Examples of solutions include visualizing risks associated with rapid environmental change, building supply chains and recovery efforts to respond to natural disasters, enabling consumer businesses to provide more sustainable and efficient shopping experiences, and linking electronic medical records in hospitals to secure patient data to improve medical care quality.
To expedite the project, Fujitsu and Microsoft will implement skilling initiatives for 28,000 Fujitsu employees over the next five years. The training will deliver cloud sales and engineering training and certification in all regions and across all solution areas.
This strategic partnership between Fujitsu and Microsoft signifies a crucial step towards sustainable transformation. By combining their resources and expertise, the companies aim to create innovative solutions that not only address business challenges but also contribute to societal well-being. The success of this partnership could set a precedent for other tech giants to follow, potentially leading to a more sustainable and socially responsible tech industry.
U.S. Political Heat Triggers Major Insurers' Exit from NZIA
Major insurers including Lloyds, AXA, Sompo, Allianz, and Scor have withdrawn from the Net-Zero Insurance Alliance (NZIA), a UN-backed initiative, amidst escalating U.S. political pressure.
The NZIA, launched in 2021, aimed to transition insurance underwriting portfolios to net-zero emissions by 2050. The recent exits are reportedly due to U.S. political discussions and warnings about potential legal violations.
Other insurers, including Munich Re, Swiss Re, Zurich Insurance Group, and Hannover Re, have also left the alliance. However, all departing insurers have retained their membership in the Net Zero Asset Owner Alliance (NZAOA).
Despite the withdrawals, AXA, Allianz, Sompo, and Lloyd’s have reiterated their sustainability commitments. Scor, while exiting, unveiled new climate-focused commitments.
The withdrawal of major insurers from the NZIA highlights the challenges of aligning climate commitments with political pressures. Despite the exits, the insurers reaffirm their commitment to sustainability, indicating a continued focus on climate strategies.
MSC Cruises Sets Sail on First Net-Zero Emission Journey
MSC Cruises, a division of MSC Group, has announced its plan to operate the first-ever net-zero cruise, powered by bio-liquefied natural gas (LNG). The voyage will be on their new flagship, MSC Euribia, marking a significant step towards sustainable cruising.
The company's objective is to demonstrate the feasibility of net-zero cruising. The MSC Euribia will embark on a four-day journey between France and Denmark, starting on June 3.
MSC Cruises has procured 400 tons of bio-LNG for the voyage, making it the first deep-sea ocean cruise operator to use this eco-friendly fuel. Bio-LNG is derived from various forms of organic waste, resulting in a renewable fuel with significantly lower lifetime greenhouse gas emissions.
The upcoming voyage will utilize bio-LNG through a mass-balance system for optimum environmental efficiency. The entire supply chain will comply with the European Union’s Renewable Energy Directive (RED II), ensuring the sustainability of all bio-LNG batches.
In addition to using biofuel, MSC Cruises will implement other initiatives to reduce the cruise's emissions footprint. These include speed and itinerary optimization to minimize fuel consumption, onboard energy specialists to monitor and optimize all aspects of the journey, and energy efficiency experts to minimize energy demand.
MSC Cruises' pioneering net-zero emission voyage represents a significant stride towards sustainable cruising. The use of bio-LNG and other energy efficiency measures underscores the company's commitment to environmental stewardship. This initiative could potentially set a new standard for the cruise industry, encouraging other operators to follow suit in the pursuit of sustainable tourism.
Watershed and KPMG: A Strategic Alliance for Global Climate Action
Watershed, a leading enterprise climate platform, has announced a strategic alliance with KPMG LLP, a global leader in audit, tax, and advisory services. This partnership aims to empower companies to measure, disclose, and reduce emissions amidst increasing regulatory, customer, and investor pressures.
Despite 70% of CEOs acknowledging the importance of decarbonization for their company's growth and financial health, less than 10% of companies measure emissions comprehensively. This collaboration between Watershed and KPMG aims to address this gap by offering a suite of capabilities for real carbon reductions.
Watershed's software platform provides granular greenhouse gas measurements and seamless emissions disclosure backed by climate science. It automates and simplifies the process of capturing data and calculating metrics, provides options for reducing emissions, and supports auditability.
KPMG will provide tailored sustainability advisory services, leveraging its expertise in broader Environmental, Social, and Governance (ESG) data, process, control, and reporting.
The partnership will support climate disclosure for frameworks like CDP and TCFD, the U.K.’s Streamlined Energy and Carbon Reporting (SECR), Business, Energy and Industrial Strategy (BEIS), and Financial Conduct Authority (FCA), and the EU’s Sustainable Finance Disclosure Regulation (SFDR).
The alliance between Watershed and KPMG signifies a crucial step towards comprehensive climate action. By combining their resources and expertise, the companies aim to create a robust platform for corporate climate action. The success of this partnership could set a precedent for other companies to follow, potentially leading to a more sustainable and climate-responsible corporate world.
US Inflation Reduction Act: Bridging the ESG Divide Across Political Lines
The US Inflation Reduction Act (IRA) is fostering an innovative approach to making ESG more acceptable in Republican-run US states, according to investment experts. This public-private finance interaction is set to significantly benefit these states through blended finance investments in clean energy projects.
The US IRA, described as the "granddaddy of all blended finance projects," represents a massive opportunity to deploy targeted public funding to mobilize private investment in climate action across the US.
The IRA contains $370 billion in clean energy incentives and tax credits. Despite no Republicans voting for the IRA, most of the funds are going to Republican-held states, with larger climate investments per person than Democrat-led states.
The IRA's clean energy tax credits could increase US GDP by up to $200 billion and create as many as 1.3 million jobs across the country by 2030. Red states are set to attract up to $337 billion in investments for large solar, wind, and storage projects from the IRA.
The predominance of IRA-linked projects in red states is providing an opportunity to change perspectives on ESG and clean energy projects. The projects are articulated in a way that appeals to the self-interest of the public, regardless of their political standpoint.
The US IRA is playing a pivotal role in bridging the ESG gap between political lines. By demonstrating the economic benefits of clean energy projects, it is changing perspectives on ESG in Republican-held states. This innovative approach could serve as a blueprint for other countries seeking to advance their climate agenda amidst diverse political landscapes.