London Stock Exchange Group study finds $1 trillion industry in climate adaptation

London Stock Exchange Group’s (LSEG) research found that over 2,100 companies generated more than $1 trillion in revenue last year from climate adaptation products and services across sectors like logistics, food processing, and real estate. With the world likely to exceed 1.5°C warming, investors and policymakers are increasingly focused on adaptation strategies. Financial firms, including JPMorgan Chase and Singapore’s sovereign wealth fund, highlight the profitability of such investments. Companies like Thales SA, Raito Kogyo Co., and Clean Harbors Inc. derive significant revenue from adaptation efforts.

If grouped as a single industry, companies in the “green economy,” as defined by LSEG, would have ranked as the second-best performing equity sector over the past decade. The green economy spans infrastructure, commodities, private equity, and fixed-income markets. Green bonds, which fund environmental projects, are seen as a key tool for financing adaptation. LSEG emphasizes that while mitigation is cheaper, adaptation is essential due to accelerating physical risks from climate change, which are arriving “faster and more damaging than anticipated.”

Jaakko Kooroshy, LSEG’s global head of sustainable investment research, notes that adaptation is now a significant growth area for the green economy. He highlights that investing in resilience upfront is far more cost-effective than disaster recovery. Even in scenarios where warming is limited to 1.5°C, adaptation remains crucial.

Sources: Bloomberg, LSEG

Crisis survivors in Australia are rebuilding their wardrobes in style

Thread Together, an Australian organization, repurposes unsold clothing from fashion brands to aid people in crisis. Ross Mitchell, its operations manager, drives a van filled with new clothes across the country, offering free "shopping" experiences to those in need. Recently, in North Queensland, record-breaking floods devastated homes, leaving residents with little more than the clothes on their backs. Thread Together distributed 25,000 items, providing dignity and empowerment through brand-new wardrobes.

Mitchell notes the emotional impact of giving people the ability to choose new clothing, describing it as a boost in morale during tough times. Residents, often reluctant to take more than necessary, appreciated the thoughtful approach, with items tailored to local needs like sandals for Queensland’s humid climate. The organization faces challenges, such as providing inclusive sizing and basic items like underwear. Despite logistical hurdles, including flooded roads, their efforts have touched thousands of lives, from disaster victims to domestic violence survivors.

Founded in 2012 by Andie Halas, Thread Together has saved 1.7 million items from landfill and distributed them to underprivileged communities. It works with over 1,500 charities, offers mobile wardrobes, online shopping, and pop-up stores, and has expanded services to women’s shelters. For refugees like Rose, the new clothes symbolize a fresh start and belonging. As extreme weather events linked to climate change increase, Thread Together’s mission of sustainability and compassion grows ever more vital.

Source: Reasons to be cheerful

Flying Whales : decisive green light for XXL airship gigantic factory

Flying Whales has received a decisive green light to build its groundbreaking airship factory in Laruscade, France, marking an unprecedented step in the country’s aerospace industry. The project, backed by the Nouvelle-Aquitaine Region with tens of millions of euros, aims to construct the LCA 60T, a 200-meter-long airship capable of carrying 60 tons. However, environmental concerns, including the presence of protected species like the European otter, had delayed approvals until a recent exemption from the Ministry of Ecological Transition.

The Laruscade site will span 75 hectares, including hangars and a runway, but the project has faced criticism for its environmental and financial risks. Flying Whales highlights efforts to minimize biodiversity impact, such as reducing the building footprint and proving the site’s suitability through a 70-criteria analysis. With public-private funding, including €150 million in private investment and a €45 million regional guarantee, the factory is set to launch in 2027, though delays have pushed costs higher for the company, which employs over 200 people.

The ambitious project has sparked debate, with some questioning the region’s heavy financial commitment, especially if Flying Whales were to fail. While alternative uses for the facility have been suggested, such as a logistics center or leisure space, the focus remains on Flying Whales' success. The company is also planning a second factory in Quebec and faces competition from global players like Sergey Brin’s LTA in California and Britain’s HAV. Despite challenges, this milestone approval is expected to reassure investors for future funding rounds.

Sources: La Tribune, L'Essentiel de l'Éco

China's first offshore carbon storage project put into operation

China's first offshore carbon capture, utilization and storage (CCUS) project began operations in May in the Pearl River Mouth Basin in south China, said China National Offshore Oil Corporation (CNOOC), the country's largest offshore oil and gas producer. The project, situated at the Enping 15-1 platform, captures carbon dioxide produced during oil development, purifies and pressurizes it to a supercritical state, and injects it into underground oil reservoirs at an initial rate of 8 tonnes per hour.

The oilfield contains high levels of carbon dioxide, which would traditionally be extracted with the oil, leading to corrosion of offshore platform facilities and submarine pipelines, while also increasing carbon emissions. The Enping 15-1 oilfield carbon dioxide storage project, launched by CNOOC in June 2023, has already injected nearly 200,000 tons of carbon dioxide, providing a carbon reduction solution for the Guangdong-Hong Kong-Macao Greater Bay Area.

Sources: China Daily, Illuminem

Are sailing ships the future of sustainable shipping?

Sailing ships, once the backbone of global trade, are re-emerging as a low-neutral alternative to fossil-fuel-powered cargo ships, which currently generate 3% of global greenhouse gas emissions. Initiatives like the schooner Apollonia on the Hudson River and France-based Grain de Sail highlight this shift. Grain de Sail operates two wind-powered vessels, reducing CO₂ emissions by 90% compared to conventional ships while transporting goods such as coffee, wine, and cosmetics across the Atlantic.

98% of Goldman Sachs shareholders reject anti-DEI proposals

-          Company: Goldman Sachs

-          Sector: Financial Services

-          Clover score: 7/10

At Goldman Sachs’ annual meeting, shareholders overwhelmingly rejected two proposals aimed at curbing the company's diversity, equity, and inclusion (DEI) initiatives. Both proposals, which sought to eliminate DEI-based executive compensation incentives and scrutinize the legal risks of DEI policies, received just 2% support. This comes amid broader debates on DEI policies following the Supreme Court's ruling against race-based affirmative action in college admissions.

The proposals, filed by the National Center for Public Policy Research (NCPPR), argued for an independent audit into potential legal and reputational risks from Goldman’s DEI practices, such as race-based mentorship programs and diversity-based investment commitments. However, Goldman’s board recommended rejecting them, emphasizing the firm’s compliance with evolving laws and its commitment to diversity. The board stated that diversity is critical to the company’s success and clarified that its policies do not involve meeting numerical diversity goals.

Despite increasing scrutiny on corporate DEI efforts in the U.S., shareholders at other companies, including Apple and Deere, have also recently rejected similar anti-DEI proposals. Goldman Sachs defended its DEI stance, with CEO David Solomon noting adjustments were made to comply with legal developments while maintaining the firm’s commitment to diversity and inclusion.

Sources: Forbes, ESG Today

AGM 2025: BP Shareholders Deliver a Rebuke to the Oil Major’s Chairman

-          Company: BP

-          Sector: Energy

-          Clover score: 3/10

At BP's 2025 Annual General Meeting (AGM), nearly a quarter of shareholders voted against the re-election of Helge Lund as chairman of the board, signalling their disapproval of the company’s new fossil-fuel-focused strategy. This rejection was seen as a significant rebuke, marking a revolt by responsible shareholders. Specifically, 24% of shareholders voted against Resolution 3, which proposed Lund's re-election, during the AGM held on April 17 near London.

This result is noteworthy in the context of AGMs, where re-elections are typically seen as a formality. A dissenting vote exceeding 10% is already considered a minor uprising, making the 24% opposition a strong statement of discontent. The vote highlights shareholder dissatisfaction with BP's recent shifts in climate strategy, which prioritize fossil fuels over investments in energy transition.

The outcome underscores the growing frustration among shareholders regarding the company’s direction. By voting against Lund’s re-election, shareholders conveyed their disapproval of BP’s pivot away from its earlier climate commitments and signalled their concern over the company’s long-term strategic focus.

Source: Novethic

Unlimited Working Hours: Gen Z Sparks Protest at EY

-          Company: Ernst & Young AG

-          Sector: Financial Services

-          Clover score: Not rated

Employees at EY have called for reinstating a 48-hour workweek limit through a referendum, largely driven by Generation Z, whose focus on well-being is reshaping workplace dynamics. In mid-April, 96% of voters supported the return to capped work hours. This comes after a 2021 agreement removed the limit, allowing workweeks of up to 70 hours during peak periods, a change that has sparked discontent among younger employees, who now make up 60-70% of the workforce.

A 2023 survey revealed that 42% of employees worked over 48 hours for at least 15 weeks annually, with 55% citing negative health impacts. Stories of exhaustion and health issues have become common, reflecting a mismatch between workplace demands and Gen Z’s priorities. According to a 2024 Ipsos survey, 80% of young employees prioritize work-life balance, with many unwilling to work extra hours without compensation. Anthropologist Elisabeth Soulié notes that Gen Z values immediate well-being over long-term career sacrifices.

This generational shift coincides with broader disillusionment, including inflation eroding purchasing power and skepticism about the economic system’s impact on people. The protest highlights Gen Z’s demand for alignment between corporate values and actions, as they challenge EY’s claim to "build a better working world." EY’s management has pledged to keep listening, though unions warn they are ready to escalate pressure if needed.

Source: Novethic

Forests around the world are taking longer to recover from severe wildfires

A recent study published in Nature Ecology & Evolution reveals that forests globally are experiencing slower recovery from severe wildfires, raising concerns about forest decline. Between 2001 and 2021, fire severity has significantly increased, particularly in western North America, Siberia, and south-eastern Australia. The study found that fewer than one-third of forests recovered within seven years of "megafires," with boreal forests in northern latitudes facing the most difficulty. Surprisingly, fire severity was identified as a greater obstacle to recovery than climate change.

Researchers analyzed 3,281 forest fires larger than 10 square kilometers and focused on forests unaffected by deforestation or subsequent fires for seven years post-burn. The findings highlight that fire severity primarily influences recovery, with rising temperatures and soil moisture deficits intensifying challenges. The study also notes that the percentage of forests taking longer to recover has grown since 2010. For example, the time required for forest canopy recovery increased by 11%, while forest productivity recovery times rose by 27%.

The research underscores the compounding effects of climate change and increased fire severity on forest ecosystems. Humid regions generally recover faster, while drier areas struggle more. Experts warn that these trends could shift forests from carbon sinks to carbon sources, exacerbating global climate challenges. The study calls for urgent attention to forest fire management and more comprehensive modeling to account for changing recovery dynamics.

Sources: Carbon Brief, Nature Ecology & Evolution