Emperor Sustainability Briefing 02.07.2026

Issue #24

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(Can’t) beat the heat 

Much of Europe has been suffering from 2026’s second major heatwave, which, make no mistake, is the product of climate change. There could hardly have been a more appropriate period for the annual London Climate Action Week to fall in. And perhaps few cities worse suited for it than London, with the infrastructure and buildings being ill-equipped for the sweltering temperatures. In a dark irony, an event on how to deal with extreme heat was cancelled due to the… extreme heat.

Also feeling the burn in this week’s Briefing: oil and gas transition plans, fashion companies making recycled product claims, and deforestation-exposed supply chains. We hope you enjoy reading, and keep cool! 

Stories:

Policy

UK to introduce national deforestation regulation similar to the EU’s

The Department for Environment, Food and Rural Affairs recently confirmed that it would establish a mandatory due diligence regime in the UK for forest-risk commodities, a policy parallel to the EUDR (the EU Deforestation Regulation). This regime, which in the EU resulted in significant action being taken by exposed companies, will cover commodities including cattle, cocoa, coffee and palm oil. UK companies will have to prove that procured items were produced without causing deforestation, which will require more robust oversight on their supply chains. This regulation is currently aiming to be introduced in 2027. It could be enforced by the end of that year, or perhaps more likely from early 2028. 

In a post-Brexit world, it’s interesting to watch the UK pick and choose from different EU sustainability regulations. The UK chose to opt for the EU Taxonomy over making its own “UK Taxonomy”, while there wasn’t a UK equivalent of the EU’s extensive CSRD reporting rule. “UKDR” – DEFRA,  you can have that one for free! – should be watched closely by UK companies in food and agriculture, furniture and home goods, and fashion in particular. If its impact in the EU is anything to go by, it could be a highly influential ruling.

Corporate

Fashion victims: Calvin Klein, UNIQLO and Adidas ads banned for recycling claims

The Advertising Standards Authority has pulled Google ads from the three brands: Adidas over a “recycled” claim for its sneakers, and Calvin Klein and UNIQLO for advertising “recycled materials” ranges with no clothes made entirely from such materials. It’s a reminder of the standard that green claims for products now have to meet, not least as in the case of the latter two companies, the ASA’s ruling might be called borderline – as the ranges in question did in fact include recycled materials. The rulings mirror heightened pressure in the EU, with the European Commission recently stepping up enforcement of its “Directive on Empowering Consumers for the Green Transition”, warning 20 member states over failures to implement the rules.

Transition plans: Oil and gas and mining sectors come up short

In an assessment by the Transition Pathway Initiative, a research centre associated with the London School of Economics (LSE), decarbonisation plans produced by two of the world’s most carbon-intensive sectors were found lacking. Based on an assessment of 22 large-listed companies in the mining and oil and gas sectors, transition plans were found to lack “quantified, time-bound and sufficiently resourced plans”. Business-model transition emerged as one of the most lacking areas, with 11 of the energy companies assessed actually planning to increase oil and gas production to 2030.

Given the sectors being analysed, and the generally tentative attitude towards transition seen from many oil and gas companies in the past couple of years, this may not be a huge surprise. But the research acts as a reminder that transition plans are viewed, assessed, and are increasingly under scrutiny for their disclosures on time-bound approaches and properly costed targets. If you’re looking at producing your own transition plan, you can get in touch with our sustainability team to discuss how you can produce an effective, evidence-backed communication.

Finance

Michael Bloomberg’s enterprise commits $285mn for clean energy in developing countries

Billionaire Michael Bloomberg – who chaired the TCFD while it was active – has committed a cool $285mn to support clean energy build-out. To be supplied by Bloomberg Philanthropies, his charity arm, the goal is to support clean energy industry associations in developing countries, while providing technical assistance for governments and regulators. The approach is interesting in that it targets the organisational elements required for a country’s energy transition – including public planning, market design and data – rather than simply investing energy assets (for instance wind and solar power). 

The announcement was made during London Climate Action Week, an event which saw many of its major meetings convened or supported by Bloomberg Philanthropies.

Home-grown magnets? UK to reduce critical minerals import reliance

The UK will invest £50mn to boost domestic production of critical minerals, in a bid to reduce reliance on increasingly pressurised global supply chains. Critical minerals are essential for the energy transition as they’re a key component of batteries and other electrification technologies. By focusing on extraction, processing and recycling operations, the move will hope to build on £200mn already committed by the UK to the sector. Progress includes the opening of Britain’s first commercial rare earth magnet plant in over 25 years, where minerals will be extracted from recycled materials. Globally, China is the dominant force in such minerals, accounting for 70% of rare earth mining and 90% of refining.

Climate 

Europe suffers disruption, costs, and fatalities under heatwave

Last week’s extreme heatwave, which afflicted the UK and large portions of western Europe, affected nearly every facet of business and life: cancelled services, productivity losses, severe health impacts, and school closures were seen across impacted countries. Several media outlets faced criticism for coverage showing people sunning themselves on crowded beaches, while in fact the heatwave was proving deadly – with the WHO’s Director-General reporting more than 1,300 excess deaths linked to high temperatures across Europe since 21st June. 

Construction and agriculture are two sectors which saw particular disruption, as temperatures in the mid-30s resulted in mandatory breaks - with researchers from Oxford Economics warning of significant damage to economic productivity should countries not adapt their infrastructure. A recent study from Allianz cautioned that France could lose up to €210bn in economic output in the next four years.

For those who have spent time calculating climate change impacts from extreme heat, last week brought the financial mathematics to life. In both the public and private sectors, increasing attention is set to be paid towards adapting to such disruptions, with additional costs and alterations to policies likely to be inevitable for many businesses. London Mayor Sadiq Khan’s “Heat Ready London” plan, published this month, is welcome in its breadth of scope – but notably light on details of costs.

One Number:

$765m

The value of offshore wind energy leases which the Trump administration has recently cancelled, redirecting the funds to natural gas and geothermal projects. 

Short list:

Danone and Mars are backing a new €150mn nature-based solutions fund run by French impact investor Livelihoods. The fund will invest in nature-based community-led projects, focused on areas including agroforestry and mangroves.

Stegra has raised €1.4 billion following a new financing round to complete construction of the world’s first large-scale green steel plant in Boden, Sweden, aiming to produce 5 million tonnes of green steel annually. 

To discuss any of these topics in more detail or speak to one of our Sustainability team about how to better your corporate sustainability efforts, email [email protected] -we'd love to hear from you.