Key strategies for the development of circular economies

Welcome to another fortnightly edition of SnippETS.

Thanks for reading our Snippets newsletter this week. We have once again included a mixed selection of articles we hope you find interesting.

World Biodiversity Day should be a wake-up call for businesses to embrace nature protection for their own self-interest and for humankind in general. Investments in climate adaptation technology are falling short as returns are still not easily measurable, leading some countries to work on their own metrics, such as Colombia, which has become more prone to flooding. Investment in Africa’s farming sector, particularly young farmers and innovators is lagging, but there are new systems looking to address this.

There are many advantages to circular economies, it can protect businesses, create new business opportunities, and cut down on a massive amount of waste. ‘Fast Fashion’ and the fashion industry in general would benefit immensely by adapting a circular economy. One truckload of perfectly wearable textiles is dumped in landfills or incinerated every second!

The fossil fuel industry is still heavily involved in sport and event sponsorship, that could all be about to change with the introduction of a new code of conduct for sponsorship. The very same industries are impacted by a drop in share price when successful legal action is taken against them.

We recently covered the impacts of vague and sometimes outright lies when it comes to greenwashing a company’s products or services and the change to regulations in this area. Delta Airlines is facing a potential $1B lawsuit for their greenwashing claims.

If fossil fuel companies had to pay for the damage, they have inflicted on the earth due to emissions, they would have to pay upwards of $893 Billion annually to cover these impacts!

Cryptocurrency mining consumes more power than the entire country of Kazakhstan (Population of 19 million). More regulation is required to rein in excessive energy use and emissions in this sector.

Protecting biodiversity should be a priority for all businesses. There is a major interconnectedness between biodiversity, business activities, and human well-being. The risks that biodiversity loss poses to ecosystems and the potential negative consequences for businesses, such as supply chain disruptions and reputational damage, can’t be understated. Businesses should integrate biodiversity considerations into their decision-making processes, adopt sustainable practices, and support conservation efforts. By recognising and prioritising biodiversity protection, businesses can ensure the continuation of the biodiversity we all rely on to survive. Read more...

Investments in climate adaptation technology are currently lacking and there are challenges in measuring returns on these investments. World Bank executives have highlighted the urgency of investing in climate adaptation to mitigate the impacts of climate change. However, they note that the lack of reliable metrics for measuring returns hampers investment decisions - it’s hard to invest in technology where the returns aren’t easily quantified. This brings in a need for developing standardised methodologies to assess the effectiveness and efficiency of climate adaptation technologies. Read more....

And a place where adaptation is increasingly essential is in the Horn of Africa, where three-years of consecutive drought have devastated the region. Young farmers are key to adaptation, but they lack funding to invest in climate-smart crops, off-grid energy sources, solar-powered irrigation and more. A study found that only 16.9% of SMEs in Senegal and Kenya were able to get a loan to finance climate change adaptation, and only 27.6% of agricultural SMEs were able to switch to a more climate-resilient crop. Read more....

We look at the concept of a circular economy and highlights key strategies for its development. The concept emphasizes the need for a shift away from the traditional linear economy towards a system that promotes recycling, reusing, and repairing. The article explores the benefits of adopting a circular economy, such as reduced waste and resource consumption, as well as improved economic and environmental outcomes. Practical approaches, such as product redesign and extended producer responsibility, are also recommended to foster a sustainable and efficient circular economy. Read more....

Fast fashion brands are notorious for destroying unsold clothes rather than finding alternative solutions. We delve deeper into why this destructive practice persists. Fast fashion's business model relies on constantly churning out new designs to meet consumer demands, resulting in overproduction and excess inventory. Destroying unsold clothes helps maintain brand exclusivity, prevents cheap reselling, and protects the brand's reputation. However, this approach contributes to environmental damage and waste, highlighting the urgent need for more sustainable practices in the fashion industry. Read more....

The end may be nigh for fossil fuel companies using sports and the arts as advertising vehicles. The Climate Council have launched a voluntary code that will allow clubs, organisations, and sponsoring bodies to commit to not entering new sponsorship arrangements with fossil fuel companies. The pledge is being compared to Australia banning all domestic tobacco sponsorships and advertising in 1998, as it will stop fossil fuel companies from using arts and sports to divert attention from the environmental impact of their activities. Read more....

A study suggests that major polluters' stock prices have declined due to the increasing risk of climate-related lawsuits. The research analysed 12 large fossil fuel companies and found that their share values dropped by 5% on average over a 20-year period. The decline is attributed to the potential legal consequences and financial liabilities associated with climate change. The findings indicate that investors are becoming more aware of the legal risks posed by climate-related issues and are adjusting their investment decisions accordingly. Read more....

Delta Air Lines is facing a lawsuit filed by the non-profit organization Air Operators for Equality (AOE) for falsely claiming carbon neutrality. AOE alleges that Delta's offset projects do not effectively reduce emissions, calling their claims misleading and harmful to the environment. Delta has responded, defending its commitment to sustainability and carbon reduction efforts. The outcome of the lawsuit could have implications for the airline industry's claims of carbon neutrality and the use of offset projects to achieve it. Read more....

Man-made climate change will cost $99,000,000,000,000 USD in loss and damage by 2100. The fossil fuel industry is responsible for $70,000,000,000,000 USD. A new study has put a price on the amount of environmental destruction the fossil fuel industry has inflicted on the planet, calling for reparations for the impending climate chaos. If the world’s 21 biggest fossil fuel firms were held accountable for their climate impact, they would owe $863 billion USD per year in direct payments to those worst affected by climate change. Read more....

Our final article examines cryptocurrency mining and how it hurts the environment. Cryptocurrency mining is the competitive process that verifies and adds new digital transaction records to the blockchain. Cryptocurrency uses a proof-of-work method to verify the accuracy of new transactions and that specific computational effort has been expended. This computational effort consumes a massive amount of electricity. For example, just Bitcoin mining alone consumes 101 TWh electricity annually, or about the same at the entire country of Kazakhstan with a population of 19 million. Read more....