February 2025 Update: Key Developments in Climate Action and Business Initiatives

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Signals of Change – February 2025

We Mean Business Coalition

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AMBITIOUS AND INVESTIBLE NDCs

The first updated nationally determined contributions (NDCs) have been submitted to the UNFCCC, ahead of the original deadline of February 10. The UK leads the way, committing to reduce greenhouse gas emissions by at least 81% by 2035 compared to 1990 levels. Switzerland has also announced its updated NDC, aiming for a 65% reduction in greenhouse gas emissions by 2035, in line with its Climate and Innovation Act. With Switzerland’s announcement, the total number of updated NDCs now stands at 16 out of 195 countries. However, UN Climate chief Simon Stiell has extended the submission deadline to September, stating, “taking a bit more time to ensure these plans are first-rate makes sense.” There have been precedents for late submissions; in February 2020, only 48 countries had submitted their NDCs by the end of that year, but most had caught up by COP26 in 2021.

A JUST TRANSITION FROM FOSSIL FUELS TO CLEAN SOLUTIONS

In Indonesia, a $15.3 million grant from France and the European Union has been secured to support the Indonesia Energy Transition Partnership (IETF), a five-year technical assistance program aimed at facilitating the country’s energy transition. In Japan, EDP Renewables APAC has signed a 20-year Power Purchase Agreement (PPA) with Amazon for a 44 MWp solar farm in Fukushima, expected to generate 48 GWh annually and offset 20,500 metric tonnes of carbon by Q3 2025. In the U.S., a remarkable 96% of new power capacity came from carbon-free sources such as solar, wind, and battery storage in 2024. The fastest growth in capacity was seen in grid batteries, particularly in California and Texas. Meanwhile, BloombergNEF projects that renewable energy costs will continue to decline in 2025, supported by China’s expanded clean-tech manufacturing, enabling it to produce electricity from major power-generating technologies at prices up to 64% cheaper than other markets. Additionally, BloombergNEF reports that in 2023, global low-carbon energy investment surpassed fossil fuels for the first time, with a ratio of 1.11:1, and bank financing reaching 89%. However, a 4:1 ratio is necessary this decade to remain on track for 1.5°C.

DEEP DIVE: BRINGING DOWN THE COSTS OF RENEWABLE HYDROGEN FOR INDUSTRY

A closer examination of what is required to advance global production of renewable hydrogen and its adoption in critical industries such as steel, fertilizers, and other chemicals has been undertaken. This analysis has been prepared by Santeri Palomäki, Manager, Industry and Built Environment, We Mean Business Coalition, and Celine Le Goazigo, Senior Manager, Energy, WBCSD.

PROTECTING AND RESTORING NATURE

The World Economic Forum reports that adopting nature-positive strategies in sectors like offshore wind, mining, ports, and automotive could unlock $1.4 trillion in business opportunities. A new study from the FAIRR investor initiative suggests that nature-based interventions are more effective than technological solutions in reducing livestock farming emissions while also benefiting biodiversity. Regarding agrivoltaics—systems that integrate solar power generation with agriculture—research from Western University in Ontario, Canada, and vegetation management firm Lara Costa indicates that agrivoltaic business models involving sheep farming could yield returns on investment ranging from 16% to 43%. Furthermore, a study published in Applied Energy highlights that integrating agrivoltaics with sheep farming enhances land health by enabling full grazing, providing shade, retaining soil moisture, and decreasing herbicide use. Agrivoltaics continues to gain traction in Europe, where UK energy company Octopus Energy has acquired OX2’s French agrivoltaics division, including a 450-MW project pipeline, with plans to invest €1 billion in French clean energy initiatives.

LATEST FROM THE COALITION

In a letter to the Financial Times, our CEO, María Mendiluce, addressed concerning reports that the European Union may roll back sustainability regulations due to US deregulation. Our new report, Quality Matters: Transforming ESG Data for Better Decision-Making, analyzes systemic issues in ESG data quality, consistency, and accessibility, while offering solutions. Developed with input from companies, investors, and partners, our new corporate climate policy engagement reporting template will help companies harness the advantages of robust advocacy reporting. Our Policy Director, Andrew Prag, welcomed the UK’s updated NDC and stressed the necessity for sectoral targets for effective implementation and investment promotion. Meanwhile, our Director of Net Zero Finance, Jane Thostrup Jagd, participated in the Accountancy Europe podcast to share insights on key aspects of CSRD readiness.

In a collaborative piece for the World Economic Forum, María Mendiluce and John Marshall, Founder and CEO of Potential Energy, underscored how simplifying climate action messaging can enhance businesses’ appeal to consumers and investors.

FINANCE: REGULATION AND REPORTING

Leading companies in Europe, including Unilever, Mars, and Nestlé, have urged the EU Commission not to weaken existing reporting standards as part of its newly announced Competitiveness Compass. In Canada, the Sustainability Standards Board has released its Canadian Sustainability Disclosure Standards (CSDSs), aligning with the ISSB’s global frameworks while granting Canadian companies additional time to prepare for comprehensive reporting requirements, including Scope 3 greenhouse gas emissions. Additionally, the UK Sustainability Disclosure Technical Advisory Committee (TAC) has recommended adopting ISSB’s IFRS S1 and S2, proposing a two-year climate-first relief period for phased implementation, allowing companies more time for their disclosures.

COMPANIES TAKING ACTION

Over 18,913 companies are actively engaged through Coalition partner initiatives. You can see all companies that committed in the past month on the We Mean Business Coalition website. Companies pursuing net-zero goals include:

• 9,765 companies working to reduce their emissions in line with science through SBTi.
• 8,960 small and medium-sized enterprises aiming to cut emissions with the SME Climate Hub.
• 541 companies that have signed the Climate Pledge to achieve net zero by 2040.

Additionally, companies are reducing emissions through various demand-side initiatives:

• 130 companies are accelerating the transition to electric vehicles with EV100.
• 5 companies are initiating the transition to zero-emission medium- and heavy-duty vehicles with EV100+.
• 129 companies are committed to enhancing their energy efficiency through EP100.
• 440 companies have pledged to use 100% renewable energy with RE100.
• 39 companies have joined ConcreteZero to develop a market for net-zero concrete.
• 45 companies have committed to SteelZero to promote a market for net-zero steel.

EVENTS

• The B Team: Rebalancing Subsidies – The Role of Business (webinar) – March 12
• CERA Week – March 10 – 14
• London Climate Action Week – June 21 – 29
• G7 – June 15 – 17
• Climate Week NYC – September 21-28
• COP30 – November 10 – 21
• G20 – November 22 – 23

CAREERS

• Various posts at ResponsibleSteel
• Various posts at BSR
• Various posts at CDP
• Various posts at Ceres
• Various posts at CLG Europe (CISL)
• Various posts at Climate Group
• Various posts at WBCSD
• Various posts at SBTi

NEWS

• Bringing down the costs of renewable hydrogen for industry – February 12, 2025
• Letter: Brussels should resist US calls to roll back green agenda – February 11, 2025
• AI cannot replace XBRL—but it can reduce the tagging burden and improve reporting quality – February 10, 2025

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