Uncertainty around plans by major car manufacturers to phase out internal combustion engines is one of several shortcomings undermining the sector’s transition to net zero, said researchers who conducted a detailed analysis of five leading automotive companies.
The team from the NewClimate Institute and Carbon Market Watch, two European nonprofits, also highlighted several developments by the companies that they describe as encouraging and worth replicating. Yet overall, the researchers concluded, the companies are “making inadequate progress in accelerating the long-overdue transition to electric mobility.”
The researchers compared the net-zero plans of five manufacturers — Ford, General Motors, Stellantis, Toyota and Volkswagen — with a transition framework for the industry developed by the NewClimate Institute. By far the most critical component in the framework is the reduction of tailpipe emissions, which can be achieved by transitioning to electric vehicles. Switching to low-carbon steel, aluminum and batteries are other components.
Viewed through the framework, the companies’ commitments appear well short of what’s required. Only GM has set a sales target — 100 percent electric vehicles globally by 2035 — that aligns with limiting global warming to 1.5 degrees Celsius. Other targets are delayed (Ford will “work toward” 100 percent EVs by 2040), regionally specific (Stellantis’ 100 percent target applies only to the U.S.) or incomplete (VW and Toyota have committed to selling more EVs, but not to reaching 100 percent).
All five companies have committed to reaching net-zero emissions: Stellantis has the earliest target year, 2038; Toyota and VW the latest, 2050. But the report authors argued that such commitments are of limited use without specific transition plans, such as vehicle sales targets, to back them up.
“Emissions reduction targets are only helpful to a certain degree, in that they paint a picture of where a company wants to be in terms of outcomes,” said Saskia Straub, a climate policy analyst at the New Climate Institute. “But they don’t tell us how they are planning to reach those outcomes.”
The absence of 1.5C-aligned EV sales targets is also notable given the latest draft of the Science Based Target initiative’s (SBTi) automotive sector standard requires companies to commit to 100 percent low-emission vehicle sales by 2030 in advanced economies, and by 2040 globally. The draft is open for consultation until August 11,
Asked to comment on the lack of sales targets and other issues in the report, VW stated its commitment to becoming carbon neutral by 2050 and Ford referred to the company’s latest sustainability report. GM, Stellantis and Toyota did not share a response. But uncertain demand for EVs in some territories is a known issue, with consumers remaining concerned about access to charging points and put off by the higher price tag on EVs. Demand in the U.S. is likely to take a further hit in September when the federal tax credit for EVs, which is worth a maximum of $7,500, is eliminated.
Despite the overall misalignment between the manufacturers’ actions and 1.5C pathways, Straub and colleagues identified several bright spots in the companies’ plans:
Stellantis has improved the transparency of its net-zero goal by setting an interim absolute emissions target: the company aims to cut emissions to 20 percent below 2021 levels by 2030.
Ford and GM have committed to purchasing 10 percent near-zero or low-carbon steel and aluminum by 2030.
VW included the emissions of a high-emissions subsidiary — Traton, which produces trucks and buses — in its annual inventory for the first time.
The automotive report is the final installment of the 2025 Corporate Climate Responsibility Monitor. Previous chapters have focused on food and agriculture, apparel and tech companies.
https://sustainable-future.org/wp-content/uploads/2025/03/cropped-trellis_favicon_180x180.png3232sustainablefuturehttps://sustainable-future.org/wp-content/uploads/2024/06/Untitled-design-117-300x94.pngsustainablefuture2025-07-18 19:03:002025-07-19 18:08:23Automotive giants are called out for fuzzy net-zero plans
If there’s a silver lining to the backlash against sustainability, it’s this: You’re not alone in what you’re seeing and feeling.
New findings from a survey conducted by Trellis data partner GlobeScan, in conjunction with the ERM Sustainability Institute and Volans, reveal a sharp rise in global sustainability professionals’ concern about the backlash against the sustainability agenda and ESG. Globally, seven in 10 experts now say there’s a significant backlash in their country, up 13 percentage points from last year.
This shift is especially pronounced in North America, where more than 90 percent of experts report experiencing significant resistance. In contrast, nearly two-thirds of experts in Asia-Pacific say there is little to no backlash, underscoring the uneven and regionally fragmented nature of the pushback. In Europe, seven in 10 experts believe there is a backlash, while Latin America and the Caribbean (60 percent) and Africa and the Middle East (61 percent) fall in between, reflecting a globally uneven but broadly felt sense of resistance.
What this means
The surge in backlash — particularly in North America and Europe — reflects growing polarization around sustainability. In these more resistant markets, progress will require careful messaging, stronger coalitions and reframing sustainability in ways that resonate with local priorities and issues.
In less-polarized regions, particularly in Asia-Pacific, there are ample opportunities to accelerate impact, scale innovation and demonstrate the value of sustainability as a driver of economic and social resilience.
Based on a survey of 844 sustainability practitioners across 72 countries globally conducted April-May 2025.
https://sustainable-future.org/wp-content/uploads/2025/03/cropped-trellis_favicon_180x180.png3232sustainablefuturehttps://sustainable-future.org/wp-content/uploads/2024/06/Untitled-design-117-300x94.pngsustainablefuture2025-07-18 10:00:002025-07-18 18:08:357 in 10 experts say backlash against sustainability agenda is intensifying
A former Amazon senior vice president who oversaw the company’s Alexa teams is taking the helm at the Bezos Earth Fund, a $10 billion climate philanthropy established by his old boss.
Tom Taylor announced the move this week, saying he was thrilled to “lead with the bold mandate to invent our way out of Earth’s environmental challenges with a combination of long-term thinking, technical curiosity and excellent execution.”
Taylor was a 23-year Amazon veteran when he left in 2023. He joined the company as a director of operations for fulfillment centers and went on to oversee 10,000 engineers, product leaders and other employees working on the Alexa smart speaker. On leaving his role, Taylor updated his LinkedIn job title to “Relaxed” and his employer to “@Ease.”
Taylor succeeds Andrew Steer, who stepped down in February. “For some time, I’ve been hoping to get back to my roots, focusing on international development and the interaction of the environment, finance and the economy,” Steer wrote at the time. His previous role was president and CEO of the World Resources Institute.
The Bezos Earth Fund has emerged as a major player in climate philanthropy since it was established in 2020 with the mission to give away $10 billion of Jeff Bezos’ fortune. The fund is noted for its work on AI and conservation, among other areas. It’s also attracted criticism from environmental groups for its advocacy for carbon markets.
https://sustainable-future.org/wp-content/uploads/2025/03/cropped-trellis_favicon_180x180.png3232sustainablefuturehttps://sustainable-future.org/wp-content/uploads/2024/06/Untitled-design-117-300x94.pngsustainablefuture2025-07-17 15:08:002025-07-17 18:08:27Bezos Earth Fund appoints former Amazon SVP as its new leader
The first commercial-scale trial of an innovative technology for onboard capture of carbon dioxide emissions from shipping vessels has been slated for later this year.
Seabound, a U.K. startup, will install a unit around the size of a shipping container on the deck of the UBC Cork, a 5,700-metric-ton vessel that carries cement from Heidelberg Materials, one of the world’s largest producers of the building material. The vessel’s exhaust will be routed over CO2-absorbing material in the container, safely locking away a portion of the vessel’s emissions.
The trial comes at a time of mounting pressure on the maritime shipping industry, which generates around a billion tons of CO2 annually, or roughly 3 percent of the global total. The International Maritime Organization, the United Nations agency that regulates the sector, recently announced plans for emissions-intensity rules that would force large vessels to cut emissions by up to 43 percent by 2035.
Additional advantage
Onboard carbon capture appeals because existing vessels can be retrofitted relatively quickly and cheaply, said Lars Erik Marcussen, logistics project manager at Heidelberg Materials Northern Europe. In the coming tests, the system will capture 25 percent of the CO2 emitted by the vessel, but the technology can achieve up to 95 percent capture, according to Seabound.
Onboard capture has an additional advantage for Heidelberg: the process involves reacting pebbles of calcium hydroxide, commonly known as lime, with CO2 to produce calcium carbonate, or limestone, which is an input into cement production.
“We can take the limestone pebbles and put them straight into our cement kilns,” said Marcussen.
The UBC Cork is one of nine vessels that Marcussen oversees. If the trial is successful, he hopes to install the carbon capture technology on an additional vessel every year. The work complements capture technology that Heidelberg has installed at its cement plant in Brevik, Norway, which now captures 400,000 tons of CO2 annually.
Energy expenses
One challenge to be surmounted before the technology scales is the production of low-carbon lime. The issue is serious enough to give some experts doubts about Seabound’s approach.
“There are systems that regenerate limestone back into calcium oxide [a precursor of calcium hydroxide], but this is a very energy-intensive process that incurs significant costs, even with 100 percent green electricity,” said Felix Klann, maritime transport policy officer at Transport & Environment, a nonprofit that works across Europe. “Shipping companies should focus instead on avoiding their emissions altogether by investing in green e-fuels, electrification and designing efficient ships.”
The technology is not yet cost-competitive, but Alisha Fredriksson, Seabound’s co-founder and CEO, expects costs to come down to around $150 per metric ton of CO2 capture as the technology scales. She added that once the cost of complying with the IMO rules and the European Union’s Emissions Trading Scheme are factored in the process will produce savings that pay back upfront costs within one to five years.
Seabound also needs to identify sources of low-carbon lime. At present, the emissions associated with producing and transporting the lime more than outweigh the benefits of capturing CO2 from the ship’s exhaust.
“We’re working with lime companies to ensure that there is a supply of green lime for our full-scale deployments,” said Fredriksson. “We want to team up with lime companies to develop dedicated kilns as close to the port as possible, so we can reuse the material over and over and then either sequester or sell that pure CO2.”
Only 4 percent of fashion brands are serious about circularity. And only a few more are ramping up strategies such as designing out waste, using fewer virgin materials and building circular business models, according to the fifth Circular Fashion Index from Kearney, a Chicago-based management consultancy. It named circular design and materials reuse and recycling as the most important ways to advance circularity.
Although circular practices have entered the mainstream, 70 percent of brands are making only moderate efforts, the report found. In assessing 246 global brands in clothing and footwear, Kearney found that year-over-year progress has stalled.
“What differentiates high performers from the rest of the panel is that they typically tackle most dimensions and are already shifting from pilot tests to extensive initiatives,” said Dario Minutella, a partner and report co-author at Kearney. In the past, most brands used circularity as a marketing tool, yet the regulatory landscape will accelerate progress, leading the industry to shift gears, he added. “Sustainability is not a cost and can create value for the companies if tackled in the right way,” Minutella said.
Researchers explored seven areas of circularity progress: design; care and maintenance; repair services; communication; resale; rental; and efforts to close the loop on waste.
Only five brands reached a 7 on Kearney’s 1-to-10 scale: The North Face, Gucci, Levi’s, Arc’teryx and Patagonia. All stood out for embedding circularity in a variety of ways.
Two from last year’s list didn’t make the cut this time around: Sweden-based Lindex and Esprit, headquartered in Hong Kong. Here’s this year’s top 10, in alphabetical order.
Arc’teryx
New to the list, the North Vancouver outdoor brand joined the Ellen MacArthur Foundation’s Fashion ReModel collaboration in 2024 to help the industry answer how to “make money without making more clothes.” Arc’teryx is pushing for mono-materials and disassembly-ready garments. It’s also investing in circular design standards across product lines.
The sportswear maker is also new to the list. Another member of the Fashion ReModel, the French company is active in circular design pilots and innovation. Decathlon has set durability and repairability standards across 120 types of products.
Gant
The Stockholm brand, known for its “Ivy League” button-down shirts, boasts initiatives including a secondhand and vintage collection, textile take-back programs and a focus on product longevity.
Gucci
Part of the Kering conglomerate, Gucci continues to advance post-sale care offerings, including lifetime repair. The high-end Florence brand is one of the few in luxury to sell its own used pieces, through the Gucci Vault and a partnership with The RealReal resale site.
Levi’s
This longtime industry leader has a track record of driving repair, resale and design circularity. In the past year and a half, the San Francisco company launched its WellThread collection featuring more easily recycled garments, and expanded both branded and third-party resale offerings.
The Venice casual-wear company punches above its weight with such initiatives as in-store repairs. In addition to advancing preferred and recycled materials, OVS has a strong design-for-circularity program.
Patagonia
The Southern California outdoor apparel leader continues to build on a long track record of centering durability, repair and resale. Its Worn Wear branded program has operated in some form for 20 years.
The North Face
Based in Denver, The North Face pursues durability with lifetime warranties on many products, extensive repair services and an internal circular design residency. In addition to its Renewed branded resale offerings, The North Face fashions new garments from parts of damaged ones.
https://sustainable-future.org/wp-content/uploads/2025/03/cropped-trellis_favicon_180x180.png3232sustainablefuturehttps://sustainable-future.org/wp-content/uploads/2024/06/Untitled-design-117-300x94.pngsustainablefuture2025-07-17 11:00:002025-07-17 18:08:29These are the 10 top circular fashion brands, according to Kearney
Like many of its competitors in retail, Sweden’s Ingka Group — the IKEA brand’s primary retailer — faces a daunting Scope 3 challenge: Value-chain emissions made up 98 percent of the 30 million tons of carbon dioxide equivalent (tCO2e) the company emitted in 2016, the baseline year for its net-zero target.
Yet Ingka is unlike its peers in that it has made remarkable progress toward its targets, which call for a 50 percent reduction by 2030 and reaching net zero by mid-century. In 2024, the company emitted 21 million tCO2e, putting it roughly on track for its end-of-decade goal.
By contrast, at least half of the world’s biggest retailers don’t have a formal net-zero target at all. For example, Walmart, the world’s largest retailer — known as a pioneer in supply chain decarbonization — is struggling to deliver on its own short-term commitments.
Source: Ingka Group
Ingka’s secret weapon? The company’s commitment to investing in climate projects is significant: the more than $5 billion it’s spent on solar and wind projects since 2009 have accrued enough assets for Ingka to be classified as a midsize energy company.
But this second profile in the Chasing Net Zero series — our company-by-company look at progress toward 2030 climate goals — reveals that just as important might be Ingka’s close ties with Inter IKEA, which supplies it with everything from bookshelves to Swedish meatballs. Few other retailers are as dependent on one supplier. While Ingka buys from 1,500 suppliers, 81 percent of its climate footprint comes from IKEA foods and products, according to data published by both companies. By comparison, Walmart has at least 100,000 purchasing relationships.
Ingka and IKEA are separate, privately held entities with individual net-zero targets, but their goals were developed in close collaboration and validated last year by the Science Based Targets initiative (SBTi). Senior staff from both organizations participate in the Inter IKEA Strategic Sustainability Council, which meets twice a year.
“This is not just a sustainability transition to the sustainability team, it’s about the whole of IKEA and the whole of the business,” said Simon Henzell-Thomas, climate and nature manager at Ingka.
This relationship provides granular insights into supplier emissions that create an advantage few others in the sector enjoy. “As a retailer, it is a huge lift to get at this data because you are the last point on a very long supply chain,” said Honor Cowen, global head of retail and apparel at consulting firm Anthesis Group.
Largest liability: Materials
Source: Ingka Group
Ingka manages 574 locations in 31 countries and generated $47 billion in fiscal 2024 — 90 percent of IKEA’s total sales. The retailer’s top emissions source by a wide margin is purchased goods, which made up 36 percent of its Scope 3 total in its 2016 baseline year.
The Scope 3 emissions come from operations as diverse as cattle ranches and data centers, but the highest impact within the category, at almost 10 million tCO2e, is from raw materials. Ingka is aiming to squeeze that down to 5.5 million metric tons by 2030, according to its first net-zero transition plan, published in February.
To reduce those numbers, Ingka will need Inter IKEA to change how its goods are designed, produced and transported. “Moving toward more renewable materials, more sustainable materials, that is going to be a huge part of reducing our footprint,” said Henzell-Thomas.
Clues about the potential for Ingka’s progress are found in Inter IKEA’s 2024 climate report. Here are plans for three of the five materials that contribute most to Ingka’s and IKEA’s emissions:
Metals. Reducing the steps required to manufacture products can cut emissions. IKEA is using stronger grades of steel for some products, such as its Mittzon desks, to reduce the amount of the material required. It’s also boosting use of recycled metals: The company uses a minimum of 70 percent recycled aluminum in widely available products including cabinet doors and mirrors.
Wood. IKEA plans to switch to recycled wood for one-third of its wood products by 2030, up from 16 percent now. One sticking point is the lack of recycling infrastructure for fiberboard and particle board. The company has set up its own recycling line in Poland to produce pegboards and better understand what’s needed to scale this work. It’s also investigating bio-based glues, which help cut emissions from board production. The downside is that bio-based glues could make it harder to disassemble certain products, hindering IKEA’s and Ingka’s recycling goals.
Textiles. IKEA is switching to lower-carbon sources for the fabrics, foam and stuffing used in bed linens, curtains, rugs, towels, sofas and mattresses. Promising developments in 2024 included curtains made of waste polyester and a sofa stuffed with felt made of fabric waste rather than polyurethane foam.
These changes will require technologies that are still emerging, along with policy changes and infrastructure investments. “We have a plan, but we also have gaps there that we’re going to close,” Henzell-Thomas said.
Bright spot: Product use at home
Source: Ingka Group
Ingka’s second biggest Scope 3 liability, at 24 percent of its 2016 total, comes from emissions generated by its customers’ use of the ovens, stoves, refrigerators, lighting and other products it sells. This is a bright spot for the company: It has met its high-level goal of cutting the impact in half by reducing emissions to 3 million tCO2e tons in 2024. The push now is to slice an additional 2 million tCO2e off the category by 2030.
Product-level changes are a big part of this success. IKEA improved the efficiency of its entire lighting line by 90 percent simply by phasing out sales of incandescent bulbs, for example, decreasing related emissions by 57 percent from its 2016 baseline. Now the focus is on reducing the electricity used by appliances such as refrigerators and ovens.
Ingka’s clean energy services, which help customers install solar panels or heat pumps at home, are another key driver of reductions in this category. And Ingka’s investment arm plans to spend $3 billion more before 2030 on more renewable energy installations and other key technologies for the clean energy transition, such as alternative fuels and grid-scale batteries.
Policy-dependent lever: Mobility
Source: Ingka Group
Ingka’s third-largest Scope 3 component contains the transport-related emissions from delivery services, as well as customer, co-worker and business travel. The retailer has reduced this footprint by just 13 percent, to 2.3 million tCO2e, since the 2016 baseline year. What’s more, emissions rose slightly between 2023 and 2024. Ingka’s transition plan calls for an additional 40 percent reduction by 2030 to 1.6 million tCO2e.
To achieve that, Ingka is investing in electric and alternative-fuel vehicles to increase the proportion of home deliveries it fulfills with zero-emissions vehicles from 40 percent to 90 percent by 2028. The retailer is also providing more pick-up locations near customers’ homes.
Ingka is prioritizing work in regions where regulatory support for a transition to zero-emissions vehicles is more favorable. In Paris, for example, Ingka uses boats on the Seine to transport goods to distribution points where they are picked up by EVs and delivered.
Circular solution: Product end of life
Source: Ingka Group
Ingka’s circular economy initiatives intersect with the work IKEA is doing to cut materials emissions. These efforts reduce Ingka’s emissions related to product end-of-life — which contributed 6 percent of Ingka’s overall footprint in 2016 — while providing IKEA with a source of recycled materials.
Ingka reported 1.6 million metric tons in emissions for product end-of-life in 2024, down 15 percent from 2016. It achieved this by expanding sales of secondhand items to a majority of stores, distributing millions of free parts to encourage repairs, refurbishing the IT equipment it uses in stores and cutting food waste. The goal is now to cut 0.3 million more tons by 2030.
Sriram Rajagopal, head of climate at Inter IKEA Group, said he was confident of hitting the 2030 goal for these emissions. But he noted that Ingka and IKEA can’t solve systemic issues, such as limited recycling infrastructure, on their own. “We need collective effort where many actors contribute to a circular economy and society,” he said.
Ingka’s investment arm is also putting $1 billion into circular economy startups. The retailer estimates that those ventures have so far recycled around 1.9 million metric tons of materials, avoiding 5 million tCO2e.
One example is RetourMatras, which recycled more than 1 million mattresses in 2024, avoiding an estimated 90,000 tCO2e. It sells that material back to customers such as IKEA for use in new production.
Ingka’s edge: Net-zero integration
Leaders across all levels of Ingka are accountable for delivering on emissions reductions. Ingka’s chief sustainability officer, Karen Pflug, is part of the group’s management team, which meets at least eight times annually. The group is directly accountable to Ingka’s executive board, which includes the CEO, deputy CEO/CFO and group legal counsel.
This sort of deep integration is indicative of leaders in retail sector decarbonization, said Evan Sheehan, head of the retail, wholesale and distribution practice at Deloitte. The most successful companies, he noted, share a few best practices:
Top executives buy into the company’s sustainability strategy and provide resources to support it.
Teams agree on clear metrics for demonstrating the return on these investments.
Well-defined models are developed to capture and use data to drive net-zero goals.
Ingka does all three. CEO Jesper Brodin is fond of saying that “being climate smart is also resource smart, cost smart and business smart.”
Up to 85 percent of the privately held company’s profits are also put toward business improvements, including those designed to reduce emissions. Historical analysis suggests other retailers, including Walmart, reinvest around 40 percent of profits.
That board level support is another reason Ingka says it is poised to deliver on its 2030 goal. “We’re pleased with where we are,” said Henzell-Thomas.
https://sustainable-future.org/wp-content/uploads/2025/03/cropped-trellis_favicon_180x180.png3232sustainablefuturehttps://sustainable-future.org/wp-content/uploads/2024/06/Untitled-design-117-300x94.pngsustainablefuture2025-07-17 10:00:002025-07-17 18:10:34Why IKEA’s $47 billion retailer is on pace to halve emissions by 2030, while rivals falter
Apple is shoring up its domestic supply of rare earth elements through a $500 million, multiyear contract with MP Materials, an 8-year-old Las Vegas mining and processing company that counts the U.S. Department of Defense as its biggest shareholder and General Motors as a marquee automotive customer.
Rare earths are a central component of magnets for electronics, as well as electric vehicle batteries and wind turbine parts.
The contract calls for Apple to buy rare earth magnets for its electronics devices from special manufacturing lines at MP’s Independence facility in Fort Worth, Texas. The site will eventually produce 1,000 metric tons of finished magnets, roughly enough to power 500,000 EVs. The contract doesn’t disclose the anticipated production volume related to Apple’s sourcing needs, only that it will “significantly boost” MP’s overall capacity.
The two companies are also building a recycling line at MP’s mine in Mountain Pass, California, the largest U.S. rare earth dig; it produced 12 percent of the world’s supply in 2023. The deal builds on a five-year relationship. Apple and MP have been piloting technology that recovers rare earths from discarded electronics and other scrap before turning it into materials that can be use in iPhones, MacBooks and other products.
Domestic supply chain
The MP contract is part of Apple’s plan to spend $500 billion to expand its U.S. manufacturing capabilities. The deal supports Apple’s goal to source priority materials — including rare earths — entirely from recycled or renewable products.
Apple hasn’t set a deadline for achieving that aspiration, but certified recycled content accounted for 24 percent of the materials the company used in 2024.
Roughly 99 percent of Apple’s magnets are already made with recycled elements. Now, it’s focused on getting more of that supply domestically.
“Rare earth materials are essential for making advanced technology,” said Apple CEO Tim Cook in a statement, “and this partnership will help strengthen the supply of these vital materials here in the United States.”
Programs designed to ramp up U.S. rare earth production have been a priority for President Donald Trump since his first administration, and he recently issued new executive orders mandating increased production in the interest of national security. The U.S. imported upwards of 70 percent of its rare earths from China in 2023 and 2024.
MP specializes in rare earths including neodymium-praseodymium oxide, cerium chloride, lanthaum carbonate. In addition to mining, MP manufactures magnets. The company reported $61 million in revenue for the first quarter, up 25 percent year over year.
The company’s capabilities have caught the eye of the U.S. Department of Defense. The two announced a 10-year contract on July 10 that will underpin the rapid construction of another MP magnet production site to supply the agency and other commercial customers. The deal includes a $400 million agreement by the DoD to purchase up to 15 percent of MP’s shares, making the federal government MP’s largest shareholder. JPMorgan Chase and Goldman Sachs will provide up to $1 billion to finance the construction.
GM has been working with MP since 2021, when the automaker signed a deal to source magnets for its EVs from the Texas factory.
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The opinions expressed here by Trellis expert contributors are their own, not those of Trellis.
We might forget it, but it’s true: By absorbing carbon from the atmosphere, the world’s forests and oceans shield us from the consequences of our emissions.
Indigenous peoples have long known this and have managed their land for generations by protecting and restoring the world’s natural carbon sinks to mitigate the environmental crisis.
As more companies wake up to this fact, they’re recognizing the need to develop nature-based projects and programs on ancestral lands with the input of the community. So much so that key features of inclusive nature-based projects and programs are emerging, providing pathways for companies to promote equitable engagement.
Prioritizing community engagement
It’s estimated that 54 percent of the world’s intact forests are on Indigenous lands storing vast carbon stocks. For generations, people from these communities have used their extensive land management expertise to restore and replenish the environment.
It’s obvious, but I think it needs saying: The best nature-based projects and programs are those which invite people with the deepest knowledge of a local environment to the decision-making table. Without their expertise, initiatives are more likely to fail. And if Indigenous peoples and traditional and local communities are excluded, projects will face social and reputational risks, too.
When these communities are properly included, the outcomes are stronger and longer-lasting. Programs can only endure if local people feel a genuine sense of ownership and see clear benefits tied to their development priorities.
For example, I recently spoke with colleagues at Silvania’s Race to Belem campaign, who are working with the Brazilian state of Tocantins to establish a state-level effort to curb deforestation. They made it clear that the involvement of Indigenous peoples, local communities and smallholder farmers was critical for success. They’ve discussed proposed revenue sharing and spending with those communities and the program will invest a percentage of its profits in sustainable livelihoods.
Community credentials count
Corporate buyers increasingly deploy internal teams and third-party experts to assess project integrity and flag risks. But up-front diligence is only part of the picture.
While early assessments often focus on the technical quality of emissions reductions and carbon accounting, buyers are placing a growing emphasis on a project or program’s social credentials — how it engages communities, protects rights and shares revenues. After contracts are signed, however, oversight often relies on developer reports or informal feedback. That’s not a reliable basis for managing risk or ensuring accountability.
In response, some companies are beginning to use tools from human rights and supply chain audits in carbon projects and programs. For example, companies such as Microsoft and Salesforce have started including third-party verification, stakeholder engagement and safeguards for Indigenous rights in their carbon credit investment agreements. These approaches reflect a growing understanding that durable, high-integrity outcomes require independent, ongoing oversight, particularly when it comes to community engagement and revenue sharing.
Many corporate buyers would welcome clearer and more consistent reporting formats for nature-based projects and programs. They want transparency around how revenues are distributed, how communities can raise grievances and how developers respond to concerns. Tools such as Beyond Alliance’s Common App are emerging to combat these challenges by prompting developers to disclose such project details.
An ethical guide for companies
As expectations rise, initiatives such as Beyond Alliance are helping shape what good looks like and setting higher standards for social integrity and buyer responsibility. Alongside this, the World Business Council for Sustainable Development’s Buyer’s Guide offers a practical framework for companies procuring nature-based carbon credits from projects and programs that work equitably with Indigenous peoples and local communities. It’s built on two core principles: do no harm; and deliver benefits.
Project developers also play a pivotal role. Their approach to co-design, governance and long-term revenue sharing often determines whether these principles are upheld in practice.
Do no harm: First, companies should look for nature-based carbon projects and programs that demonstrate they have gained free, prior, informed consent from affected communities through dialogue using interpreters when necessary. Companies should engage in transparent, culturally appropriate communications with local people. Nature-based initiatives should also recognize local people’s land and resource rights. In fact, the best projects and programs help to consolidate and enforce these rights.
To ensure no harm, companies should check that nature-based initiatives regularly monitor the social impacts of their work. This means having proper safeguards and grievance mechanisms in place which local people can use to express opinions and raise concerns. It’s also important to submit projects and programs to local oversight institutions that may be aligned with activities on the ground.
Deliver benefits: The best projects and programs consider local people as active participants rather than beneficiaries of carbon revenue. Companies can look for programs and projects that invest in local capacity building and leadership opportunities. For example, the Brazilian state of Acre just completed widespread consultations that led to the decision to channel 72 percent of the proceeds from one nature-based program to communities.
Engagement is foundational to success
Engaging Indigenous people, traditional and local communities isn’t a formality; it’s foundational. Without involving the people with the best expertise, nature-based projects will lose out. They simply cannot be as successful.
The good news is that the tools to facilitate inclusion already exist. Now it’s time for companies to use their influence and push for better terms for Indigenous peoples, traditional and local communities.
https://sustainable-future.org/wp-content/uploads/2025/03/cropped-trellis_favicon_180x180.png3232sustainablefuturehttps://sustainable-future.org/wp-content/uploads/2024/06/Untitled-design-117-300x94.pngsustainablefuture2025-07-16 10:00:002025-07-16 18:09:05How companies can support Indigenous communities in carbon markets
Just 432 large U.S. companies filed sustainability reports during the first half of 2025, a sharp drop from the 831 that did so during the same period last year.
The finding comes from an analysis of the 3,000 largest U.S. companies (by revenue) carried out by The Conference Board, a business-oriented think tank, and its data partner, ESGAUGE. Companies that published sustainability reports in the first half of 2024 but have not done so this year include Adobe, Citigroup, General Motors, Mastercard and Uber, according to the board’s analysis.
“There’s been such a shift this year in the U.S.,” said Andrew Jones, principal researcher at the board’s Governance and Sustainability Center. “The new administration has a very different kind of mandate when it comes to climate change and environmental issues and DEI. That’s introduced new risk dynamics.”
Previous studies by the Conference Board concerning company thinking on sustainability provide details of that new dynamics, added Jones. A survey published of 125 executives working on ESG, published in May, found that many are reframing how they communicate ESG issues and adding additional layers of review.
Source: Sustainability Under Scrutiny: Corporate ESG in an Uncertain Policy Environment, The Conference Board, May 2025
Concerns about ESG communication are particularly strong when it comes to climate; another question from the same survey revealed that this topic topped the list of issue areas that executives expected to attract scrutiny.
Source: Sustainability Under Scrutiny: Corporate ESG in an Uncertain Policy Environment, The Conference Board, May 2025
Jones said the low number of reports likely reflects delays in publication rather than an abandonment.
“I think a lot of these companies will file sustainability reports,” he said. “They’re seeing where the environment goes. Perhaps they’re looking at some of their peers and competitors, and seeing what they do, particularly how they approach the DEI issue.”
Trellis contacted 10 companies that are late in filing their reports, including those named above, and will update this story when they respond.
https://sustainable-future.org/wp-content/uploads/2025/03/cropped-trellis_favicon_180x180.png3232sustainablefuturehttps://sustainable-future.org/wp-content/uploads/2024/06/Untitled-design-117-300x94.pngsustainablefuture2025-07-16 10:00:002025-07-16 18:09:13Publication of sustainability reports has dropped by half this year
HP Inc. is encouraging its third-party sales partners to sell refurbished versions of its personal computers and printers by compensating them at the same rate they would receive for new products.
The initiative was created to support HP Renew Solutions, a business unit formed in November 2023 to expand sales of HP Certified Refurbished technology. These are products returned to HP by commercial customers when leases expire or during technology upgrade cycles, reconditioned with fresh components and offered for resale.
Effective immediately, any HP sales partner authorized to sell HP products can also represent the secondhand editions. They were previously only sold through HP’s direct sales representatives.
HP’s third-party sales channel drives approximately 85 percent of the company’s annual revenue, according to past company statements. The company reported $54 billion in sales for the fiscal year ended Oct. 31, 2024.
“Leaving the channel out of this would have been myopic,” said Claudia Contreras, vice president of HP Renew Solutions.
More buyers want secondhand products
HP’s program is similar to one offered by networking gear manufacturer Cisco for its remanufactured equipment. Cisco’s original program has been available for nearly three decades, but Cisco introduced a circularity promotion in January 2024 to make it more lucrative for partners to sell remanufactured gear. Cisco’s indirect sales channel accounts for close to 90 percent of its revenue.
Customer interest in refurbished options covered by HP guarantees about quality — important for erasing a potential stigma against reused computers and information technology — convinced the company to turn HP Renew Solutions into a standalone business initiative with undisclosed revenue goals.
HP’s pledge is for 75 percent of its product and packaging content, by weight, to come from recycled, renewable or reused materials or components by 2030.
“We want to make sure that we are participating not just in the first life of these products but also in the second life,” Contreras said.
The portfolio of refurbished products available for resale to commercial customers varies depending on the region, she said.
Certain personal computers are available in France, Spain, U.K. and U.S. One example is a refurbished version of HP’s EliteBook laptop computer that has a carbon footprint that is 60 percent lower than the original edition, she estimated. (The percentage varies depending on the product.) More recently, refurbished printers can be included as part of managed services contracts in the U.S. and European Union.
“If you are a company that is making bold and public claims about reducing emissions, this offers a very measurable way to lower the impact of your IT assets,” Contreras said.
Sustainability metrics as deal closers
The new program supporting refurbished products is an extension of initiatives HP started offering in 2020 in response to commercial customer requests for more information about the energy consumption and carbon footprint metrics associated with HP’s products.
HP’s ability to offer information about sustainability as part of sales discussions translated into more than $1 billion in sales in fiscal 2020 and 2021. The company didn’t disclose data for 2023, the latest year for which an HP environmental information is available. Its next report is due in several weeks.
HP created the Amplify Impact certification in 2021 for sales partners that use sustainability metrics to close deals. More than half of HP certified partners have completed that training. HP declined to disclose how many partners are part of the overall Amplify program, citing competitive reasons, but past reports put the number around 10,000.
Compensating HP partners equally for new and certified refurbished products allows salespeople to focus on customer needs, said Mary Beth Walker, vice president and head of global partner experience and engagement at HP.
“We made a collective decision that in markets where HP Renew Solutions are available, we would equally incentivize all partners to equip customers working to adopt greater circularity,” she said.
Creating a level playing field was helpful, said Prashant Singh, vice president at HP partner End Point Solutions. “As a solutions integrator, we focus on helping clients get more from their device investments — not just at the point of purchase but throughout the entire lifecycle,” Singh said. “The flexibility and support to sell HP Certified Refurbished devices has been essential for keeping our clients productive even when budgets are tight.”
https://sustainable-future.org/wp-content/uploads/2025/03/cropped-trellis_favicon_180x180.png3232sustainablefuturehttps://sustainable-future.org/wp-content/uploads/2024/06/Untitled-design-117-300x94.pngsustainablefuture2025-07-15 13:34:002025-07-15 18:08:53Why HP now lets its sales partners offer refurbished equipment