It's Go Time, Punch Buggy, and Dancing Green

Mandatory Climate Reporting is in, VW is out, and Massive Attack drops a groundbreaking track... for the music industry train to follow

This is the first edition of Honey Drops, which I am thrilled to share with you. As The Ocelli Group takes its name from the bee's ocelli, those remarkable eyes that guide its flight via the sun, I felt it a natural extension for this Corporate Sustainability newsletter to incorporate the alchemy of their nectar: Honey.

I look forward to sharing this collated overview of what’s been happening around the world each week.

3 Reflections From Me

Mandatory Climate Reporting is passed into Australian Law

Successfully voted through by the House of Reps on Monday 9th September, The Australian Sustainability Reporting Standards commence a new era of transparency on the national roadmap towards the Paris Agreement target of limiting global temperatures rising 1.5℃ above pre-industrial levels.

This means:

  • Large and medium sized companies are required to make disclosures to regulators regarding climate-related risks and opportunities material to their business model;

  • The greenhouse gas emissions across their entire value chain will become evident as suppliers are required to share their own emissions data with customers, starting as soon as 2025 for the largest companies.

I’ve already spoken with many people in the Sustainability space who share a similar sentiment: ‘It’s good news, we have been waiting a long time for it pass, and now we can just get on with it’.

In a complex world, I do think it’s worth taking a moment to acknowledge the significance of its passing. There will be many speed bumps, roadblocks and tough conversations ahead, but we are on the right path to protecting Australian business, communities and jobs by enacting this across the economy.

Volkswagon’s Dieselgate Continues

Nine years after this emissions testing fraud first came to light, the CEO of VW has appeared in a German regional court this week on personal charges (which he denies) for systemic violations responsible for the company paying €30bn ($49.8bn AUD) in fines and finding themselves in a profit crisis due to not transitioning from Internal Combustion Engines to Electric Vehicles.

He has also being blamed for putting his entire country’s international reputation for high-quality products at risk.

Could this be the Kodak/Blockbuster/Nokia of the 2020s?

Many of us would have heard a variation of the line, “Sustainability is something we only have to do on the side of the real business strategy”. I’m not sure how many companies could withstand the brand damage of being the poster child for fraud in their industry, this level of ongoing financial penalties relative to global revenues, increased regulatory scrutiny, decreased sales due to the loss of trust with customers, or the urgently reactive shift to the corporate strategy.

There will be a lot of decision makers thinking this couldn’t happen to them, yet I’m sure the head honchos at VW thought the same thing at one point as well.

Massive Attack: Act 1.5 Concert

The group responsible for ‘Teardrop’, ‘Unfinished Sympathy’ and ‘Angel’, remain true to their pioneering nature, not just talking about climate change in the music industry, but taking action by setting a new standard as the UK's biggest low-carbon gig with their one-day festival outside Bristol attracting over 30,000 people.

Their aim was to create a blueprint for the music industry to incorporate into all tours so artists and fans can continue to meet in the mosh or on a hill overlooking the

stage, for many decades to come. They replaced all diesel generators with batteries, and put on a fleet of EV shuttles to transport the crowd.

I definitely have a dog in this fight as an avid concertgoer, and I’m excited to see the innovation this blueprint launches for bands, DJs, and touring companies.

2 Quotes From Others

  1. CFO advisor, Paula Kensington, on why decision-maker inertia isn’t necessarily borne of malicious intent, and may require more handholding than expected:

    “Following many conversations this year with CFOs I am concerned that our community, who can absolutely shape the future when it comes to business led impact, are stuck in today with a huge sense of overwhelm.” - Paula Kensington, PK Advisory

    Source: PK Advisory Newsletter, more can be found at CFO Conversations

  2. Darren Walker, of The Atlantic, provides a tangential illustration of the larger mission within Corporate Sustainability:

    “Julius Rosenwald understood that charity is not just about giving, but about fixing the inequalities that make giving necessary.”

    Source: Finding Philanthropy’s Forgotten Founder

1 Question for you to ponder

Wabi-sabi is a Japanese worldview centred on the acceptance of imperfection, impermanence and incompleteness. It popped up again on my radar this week as a reminder that we’re not striving for flawless perfection, but rather the authenticity and acceptance of the world being in constant flux.

How do you experience wabi-sabi in your life?

Until next week,
Dan

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Australian Mandatory Climate Reporting 101

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