Legislation, Green coins, Risks, MYSA & Lights
(Less) alphabet soup
In remarks in Budapest late last year, European Commission President Ursula von der Leyen indicated plans to consolidate the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD), and the EU Taxonomy Regulation into a single piece of legislation (the “Omnibus ESG legislation”).
She argued that this would streamline disclosures and make compliance less burdensome for companies. On the face of it, a streamlined approach will appeal to many companies struggling to manage complex and overlapping legislation. But what does this mean for companies who have already invested time and resources in navigating the existing regulation? Does “streamline” inevitably mean “dumb down”? Is this change an attempt to keep European businesses competitive, particularly faced with a new US administration that seems unlikely to be interested in raising the bar on climate and sustainability reporting? And what should you do if you’re already half way through (or even further along) preparing your first CSRD-compliant report?
Earlier this month, Claire Jost and Giles Gibbons sat down with our friend Dan Gray from Mishcon Purpose over a cup of coffee to discuss all this (and more!). You can read the transcript of our conversation here: Good-Business-Consolidating-EU-sustainability-legislation.pdf.
Green coins for cities
In more news from Davos, our friends at the NATURE & PEOPLE FOUNDATION unveiled an innovative framework aimed at unlocking private investment in urban biodiversity. We're proud to see this groundbreaking framework come to life, having collaborated with the Foundation and Mishcon de Reya in developing this idea.
The Urban Biodiversity Standard (UBS) is a financial mechanism that creates tradeable credits for increasing biodiversity in cities, transforming urban nature into a measurable and investable asset that generates environmental and economic value.
So, how do UBCs work? It's straightforward: one credit is generated annually for every 100 m² of new vegetation cover, for up to 20 years. This clever system provides a tangible way to value biodiversity services in cities, essentially creating a market for urban nature initiatives.
What makes this approach particularly exciting is its blend of environmental goals and financial incentives. Cities can boost their revenue by selling UBCs, potentially easing fiscal pressures. Plus, these credits can serve as collateral for loans or back green bonds, opening up new financing avenues for urban development.
With urban areas set to house 70% of the world's population by 2050 and global warming surpassing 1.5°C in 2024, the need for nature-based solutions in cities has never been more urgent. Greener cities deliver huge benefits to human wellbeing and economic growth.
Initial pilot projects in Formentera and Rio de Janeiro are already showcasing the potential of UBCs to reimagine urban ecosystems. As the Foundation expands these initiatives in 2025, we're looking at a promising blueprint for more resilient, livable cities.
The future of urban sustainability just got a lot more interesting.
Negative Outlooks
This week, global leaders gathered in Davos for the World Economic Forum’s Annual Meeting to discuss major global and regional challenges. As ever, the meeting was preceded by the release of the Global Risk Report, based on the WEF’s Global Risks Perception Survey. The report, which analyses risks and provides insights into challenges and opportunities, paints a grim picture of a fractured global landscape with increasing risk on the horizon.
State-based conflict is a pressing near-term threat: a risk that can be addressed through by treaties and agreements, is more pronounced in the face of unilateralism, reduced cooperation and higher military spending, meaning that the outlook for this is pessimistic.
In the long term, climate change is expected to pose the most severe risk, with escalations in extreme weather events, biodiversity loss, critical changes to earth’s systems, and natural resource shortages. This week’s US withdrawal from the Paris Agreement is alarming, potentially stalling global climate efforts. Climate-related risks are urgent realities requiring immediate action, not a hypothetical threat.
The path forward will be difficult. As the Davos meeting concludes, we’ll be interested to see the outcomes. Will global leaders rise to the challenge, or will failure to act decisively deepen global fractures?
Forever in the game
In our Christmas Friday 5, we highlighted the pioneering work of the Mathare Youth Sports Association (MYSA) in Kenya. It is with profound sadness that we reflect on the passing of Bob Munro, the visionary founder of MYSA and Mathare United Football Club last weekend.
In 1987, Bob established MYSA in Nairobi's Mathare, one of the largest and poorest slums, to channel the power of sports for social change. Under his leadership, MYSA successfully integrated sports with community service programs like environmental clean-ups, education, and HIV/AIDS awareness. His approach nurtured athletic talent while instilling life skills and a sense of purpose in young people often facing challenging life circumstances.
Before founding MYSA, Bob was working with the United Nations, which he left (frustrated by inaction) to create real, tangible change on the ground. He fought against entrenched corruption in the sector, and helped professionalise the Kenyan Premier League, earning him the title "Father of the KPL." He stood by his principles, even when it put him and his family in great danger.
Our connection with Bob and MYSA dates back to 1999 when we established Laureus Sport for Good Foundation. Since then, Laureus has raised over £250 million, and positively impacted hundreds of thousands of young people annually. MYSA was the first project that was funded and continues to operate in Nairobi, engaging over 50,000 children weekly in structured activities that promote both personal and community development.
Bob Munro’s pioneering work in using sports as a tool for social change has inspired countless others and will continue to influence future generations. He was more than a pioneer; he was a mentor, a leader, and a friend. As we mourn his loss, we also celebrate his extraordinary legacy that continues to inspire and change the lives of thousands.
Dark January
January is a pretty dark month – this year, both in terms of weather and news. So a campaign named ‘Dark January’ may not be the most appealing.
But the idea behind property data company Metrikus’ campaign was to reduce the 30% of energy in commercial buildings in the UK that’s wasted. The campaign’s relatively humble aims were to get us to turn the lights off in office spaces in unoccupied areas this month, reducing emissions and money in the process, as well as light pollution. And even though we’re nearly at the end of January, there’s no reason to not continue doing this.
The simplicity of the campaign is part of the appeal. it recognises that lighting is only part of the energy challenge, but it’s an easy, tangible starting point. And January is a time of year when people are considering changing their behaviour, which may lead to more sustained behaviour and savings.
That said, it may not always be that simple in practice. It may be that lighting and energy is automated, controlled by someone else like a building manager or landlord, or is required to be kept on for other reasons like safety. It may not be as simple as flicking a switch, but this could be a good chance to start a conversation around office energy – and a lightbulb moment may well follow.
