Published on 10/02/2025
Global warming reaches 1.5°C
Climate breakdown drove the annual global temperature above the internationally agreed 1.5°C target for the first-time last year, supercharging extreme. The average temperature in 2024 was 1.6°C above preindustrial levels, data from the EU’s Copernicus Climate Change Service (C3S) shows. The Paris agreement target of 1.5°C is measured over a decade or two, so a single year above that level does not mean the target has been missed, but does show the climate emergency continues to intensify. Fossil-fuel emissions must fall by 45% by 2030 to have a chance of limiting heating to 1.5°C.
“There’s now an extremely high likelihood that we will overshoot the long-term average of 1.5°C in the Paris agreement limit,” Dr Samantha Burgess, deputy director at C3S, said. “These high global temperatures, coupled with record global atmospheric water vapour levels in 2024, meant unprecedented heatwaves and heavy rainfall events, causing misery for millions of people.” Dr Friederike Otto from the Imperial College London added “This record needs to be a reality check. A year of extreme weather showed just how dangerous life is at 1.5°C. The Valencia floods, US hurricanes, the Philippines typhoons and Amazon drought are just four disasters last year that were worsened by climate change. […] We know exactly what we need to do to transition away from fossil fuels, halt deforestation and make societies more resilient.”
Sources: The Guardian, Reuters, Novethic, Carbon Brief
The curative power of quieter cities
Noise pollution is increasingly recognized as a significant health concern, with communities worldwide seeking solutions to reduce noise levels. Krystal Martin's investigation into the impacts of a wood pellet manufacturing facility in the town of Gloster, Mississippi, found that noise pollution was a significant issue alongside air quality. Erica Walker, an epidemiological researcher from Brown University, confirmed the health implications of constant noise, including cardiovascular and cognitive health problems, hypertension, impaired cognitive functioning, sleep issues, and mental health conditions.
Research and awareness efforts are crucial in understanding and mitigating the effects of noise pollution. In the European Union, sound mapping from various sources has become standard practice, though the US still lags in this respect. However, Rick Neitzel, a professor of environmental health sciences at the University of Michigan, notes growing awareness. The data gathered in these studies help communities better plan for their health and future, providing them with the necessary information to negotiate about potential sources of noise.
Different strategies have been implemented to address noise pollution. Paris has introduced radars to identify and fine excessively loud vehicles, while several European cities have reduced speed limits to decrease traffic noise. The rise of electric vehicles also promises quieter urban environments. Ultimately, systemic approaches, like expanding public transit and reducing the number of vehicles on the road, are likely to have the most significant impact. Additionally, engaging communities in addressing noise pollution is crucial to ensure solutions are equitable and effective.
Source: Reasons to be cheerful
2025, International Year of Glacier Preservation
UNESCO and the World Meteorological Organization (WMO) officially launch the International Year of Glacier Preservation, marking a crucial milestone in global efforts to protect this essential resource on which more than 2 billion people depend.
Glaciers and ice caps store about 70% of the world's fresh water, but today these formations are rapidly retreating due to climate change. The Rhône glacier in Switzerland provides an optimal observation point to realize this. The source of the river that runs through the entire Swiss Valais, flows into Lake Geneva, and then leaves, on the French side, to the Mediterranean. The glacier is now only a shadow of its former self. Each year, it recedes by at least 6 to 8 meters, to the point that about thirty years ago, a real lake formed at its end.
"Preserving glaciers is one of humanity's most urgent challenges. These formations are not just frozen water: they are guardians of our planet's climate history, a source of life for billions of people, a balance for the surrounding biodiversity, and sacred places for many cultures. Their rapid disappearance is a reminder that we must act now," said Audrey Azoulay, Director-General of UNESCO.
Sources: UNESCO, RTBF, Franceinfo
Climate goals remain amid net-zero alliances exits
Recent developments
‘Net-zero’ corresponds to the concept of limiting as much as possible greenhouse gas emissions and compensating the remaining. Initiatives such as the Glasgow Financial Alliance for Net Zero (GFANZ) and associated Net Zero Asset Management (NZAM), Net Zero Banking Alliance (NZBA, UN backed) or Net Zero Insurance Alliance (NZIA, also UN backed) for instance gather members willing to advance these emissions reduction targets within the broader financial industry. They were first claimed to be “the breakthrough in mainstreaming climate finance the world needs” (Mark Carney, the UK government’s climate finance adviser for Cop26).
By the end of 2024 and early in 2025, some of their American members left the alliances. The six biggest banks in the US, namely JP Morgan, Citigroup, Bank of America, Morgan Stanley, Wells Fargo and Goldman Sachs, have all quit the global banking industry’s net zero target-setting group. More recently, world’s largest asset manager Blackrock withdraw its $11 000bn assets under management (AUM) from NZAM and its cumulated $57 000bn AUM. This follows a 2023 move where NZIA founding members Scor, Axa and Allianz left their sector’s net zero working group.
Implied causes
US media reports that banks and asset managers faced legal attacks in November from about ten conservative states. These states argue that such coordinated initiatives were in violation of antitrust laws and impacted the development of fossil fuels, leading to price increases.
Trump’s vows to deregulate the energy sector, dismantle environmental rules and “drill, baby, drill”, were a big part of his campaign platform and are expected to form a key part of his blueprint for governing the US, the world’s biggest oil and gas producer.
It is to be noted that the consequent ESG backlash “is something that has been created by those that stand to lose the most from the net zero energy transition. And they are, of course, oil and gas firms, some of the most well capitalised companies in the entire economy.” said James Alexander, the chief executive at the UK Sustainable Investment and Finance Association.
What’s next?
In a statement published on 31 December, GFANZ announced it would drop its requirements for members to publish firm targets, allowing “any financial institution working to mobilise capital and lower the barriers to financing energy transition to participate”.
Even if they’re not part of an alliance anymore, companies can still pursue climate targets. This departure "does not change the way we develop products and solutions for our clients or the way we manage their portfolios," says BlackRock, which managed over $1 trillion in sustainable and transition investment strategies. Many banks and financial institution would keep their sustainable investment strategies alive, but not claiming it as loud as they used to. By leaving the alliances, some actors also start to adopt their own climate-oriented investments targets.
A remaining question is whether self-set targets are as strong and relevant as binding ones. Optimistically, the faltering of these projects could therefore create new openings for more ambitious and effective policy.
Sources: Les Echos, The Guardian, The Guardian, Financial Times
Weight loss drugs: a promising and uncertain turning point
Obesity, which has become a global public health problem, is associated with many cardiovascular diseases. More than 650 million adults worldwide are classified as obese, a figure that has almost tripled since 1975. In the United States, obesity affects more than 42% of the adult population. Cardiovascular diseases, the leading cause of death worldwide, cause more than 18 million deaths per year. With the aging of the global population, the incidence of cardiovascular diseases is expected to increase sharply. Older adults are more at risk of developing heart diseases, especially in case of obesity. These trends reinforce the urgency and demand for innovative treatments that address both obesity and cardiovascular health.
GLP-1 receptor agonists, initially developed to treat diabetes, stand out for their effectiveness in weight management and reducing cardiovascular risks, making them a key player in the health field. These drugs can lead to weight loss of up to 15% in patients, thus significantly reducing cardiovascular risks.
Source: Agefi Finance
Google signs largest ever biochar carbon removal purchase deal
- Company: Alphabet Inc
- Sector: Internet & Softwares
- Clover rating: 5/10
Google announced that is has signed the largest-ever biochar-based carbon removal agreements, with two new 100 000 tons deals to buy carbon removal credits from India-based Varaha and California-based Charm Industrial, for a total of 200 000 tons by 2030. Biochar, or biological charcoal, is produced by heating biomass, such as forest residue, wood or crop waste, in the absence of oxygen, creating a stable form of carbon, which when buried in soil enables centuries-long carbon sequestration, in addition to leading to improved soil fertility.
Founded in 2022, Varaha specializes in nature-based solutions, with a mission to sequester 1 billion tonnes of CO2e on smallholder lands. The company’s Gujarat facility, launched in 2023, uses Prosopis juliflora, an invasive woody species as a feedstock for high-temperature pyrolysis into biochar, which is then applied as a soil amendment to enrich fertility, with smallholders involved in the collection of biomass feedstock and in the application of biochar in agricultural fields. In addition to removing carbon and enhancing soil fertility, the project also combats the invasion of the species, which disrupts local ecosystems by depleting groundwater and suppressing native flora.
At Unilever, sustainability falls under the communication department
- Company: Unilver PLC
- Sector: Bien de consommation
- Clover rating: 5/10
The backpedaling continues for Unilever in terms of sustainability. After already scaling back its commitments for ecological and social transition in 2024, the agri-food giant announced a change in the governance of its sustainability department: gone is Unilever's autonomous sustainable development department, which will now be placed under the control of the communication department.
The group's CEO, Hein Schumacher, thus announced in an internal memo revealed by the Financial Times his decision to "group" sustainable development with external communication and public affairs. A choice that is controversial among sustainability experts and sounds like a symbol of a retreat for Unilever's ecological and social ambitions, once considered a "pioneer" in the field. By merging the functions, the risks of greenwashing and other misleading communications on environmental matters are multiplied.
With this decision, Unilever is also out of step with the trends observed in most large companies. In recent years, most of them have indeed set up an autonomous department dedicated to sustainability, generally attached to the general management as a sign of the strategic importance given to social and environmental issues, as shown by the study conducted by the CSR Observatory and the Des Enjeux et des Hommes consulting firm.
Sources: Novethic, Financial Times
IKEA parent company to invest $1 billion in recycling focused companies
- Company: Ingka Group
- Sector: Retailing
- Clover rating: not rated
Ingka Investments, the investments arm of Ingka Group, the largest IKEA retailer representing 90% of IKEA sales, announced plans to invest €1 billion in companies enabling growth in recycling infrastructure. According to Ingka Group, the new initiative is aimed at supporting the transition to a circular economy, with the company noting that the global economy consumes 75% more natural resources than the Earth can regenerate, while less than 20% of waste is recycled.
Nearly half of IKEA’s climate footprint is generated through the materials used in its products. The company has committed to design all products with circular capabilities, and is targeting the use of only recycled and recyclable materials, with a focus on increasing the share of recycled content in IKEA products. To date, the company estimates that its portfolio companies have recycled approximately 2.7 million tonnes of material, and avoided more than 9.4 million tonnes of CO2e emissions. Investments include mattress material recycling venture RetourMatras, post-consumer plastic recycler Morssinkhof Rymoplast, and plastic recycling solutions group Next Generation Group.
Companies' profits reduced by 25% due to climate change
A study published in January by the Boston Consulting Group estimates that between 5% and 25% of company profits will be threatened by the material risks of climate change by 2050. More broadly, in a scenario of +3°C warming, the global GDP could lose up to 22% of its value by 2100, compared to a scenario where effective measures would be put in place to counter climate change. This is 10 to 15% more than in a scenario of warming limited to +2°C, as planned by the Paris Agreement. Conversely, if "only" 3% of the cumulative GDP was directed to finance mitigation and adaptation to climate change, this could avoid 10 to 15% of the losses by the end of the century.
Several examples are highlighted. In China, in the Sichuan region, hydroelectric production fell to about 20% of its usual capacity in 2022 due to a drought, forcing Toyota and Foxconn to halt production in their factories, while supply chain disruptions extended to Tesla and SAIC Motor. In 2021, in Germany, severe floods inflicted $1.4 billion in damage to tracks, bridges, stations, and other assets of the railway operator Deutsche Bahn.
Experts note that companies that act to limit the impacts of climate change could see their investments in these strategies yield between 2 and 19 dollars for each dollar invested.