In a historic move, the agreement negotiated at COP 28, after tense negotiations, marks a significant turning point in the fight against climate change. For the first time, an international text explicitly calls for a reduction in the use of fossil fuels, symbolizing notable progress and a significant advance. However, the devil is in the details: the challenge was to reach a consensus among all participating states. The United Arab Emirates, in particular, played a key role, demonstrating its influence on the international stage by adhering to this notion of "transitioning away from fossil fuels."

NGOs and countries of the South, especially island states, would have preferred a firmer commitment towards a complete phase-out of fossil fuels. The current wording leaves room for interpretation and does not specify whether the reduction in fossil fuels should be relative or absolute.

At the heart of this climate battle lies a crucial distinction: it's not just about reducing the relative share of fossil fuels in favor of low-carbon energies but completely eliminating them. Indeed, a state can reduce the proportion of fossil fuels in its energy mix simply by increasing the use of renewables faster while continuing to increase its absolute consumption of fossil fuels, which would not solve the climate problem and could even worsen it.

It is also important to note that natural gas, despite its name, is a fossil fuel. This agreement considers it a "transition energy," part of a "just, orderly, and equitable" transition.

Beyond these semantic debates, the agreement addresses other crucial points, such as tripling renewable energy production capacities by 2030 and improving energy efficiency. It also highlights the development of nuclear energy, which, despite its drawbacks, has the significant advantage of being low-carbon.

Another notable aspect of this agreement is validating the fund for loss and damage, an idea mentioned at COP 27 in Sharm el-Sheikh. This fund, supported by the countries of the North, aims to cover the negative impacts suffered by the countries of the South. Although contributions are voluntary and potentially insufficient, they represent a step forward.

On the sidelines of the main agreement, several major powers, including the European Union, the United States, Indonesia, and Vietnam, committed to accelerating the phase-out of coal, a major source of climate pollution.

A striking fact of COP 28 is the increased presence of fossil fuel lobbyists, with 2,456 accredited representatives, four times more than the previous year. This presence is comparable to that of large national delegations and exceeds that of the countries most vulnerable to climate change.

It has been reported that the COP president, Mr. Sultan Al-Jaber, has made remarks questioning the scientific basis linking the transition away from fossil fuels to the goal of limiting global warming to 1.5°C. These comments appear to disregard the detailed findings of the IPCC reports, which provide an alternative and more alarming scientific perspective.

However, he clarified that his comments were about the challenges of transitioning away from fossil fuels while ensuring sustainable development. His stance, while acknowledging the complexities, does not directly oppose the IPCC reports' findings on the necessity of reducing fossil fuel use to mitigate climate change.

In conclusion, COP 28 stands as a landmark event in the global effort against climate change, balancing the urgency of action with the complexities of international consensus. While it pioneers in explicitly calling for fossil fuel reduction, the agreement also acknowledges the challenges of a full transition, especially from coal, particularly in the context of sustainable development. This nuanced approach, coupled with commitments to strengthen renewable energies and the loss and damage fund, reflects a pragmatic yet hopeful stride towards a more sustainable future. The presence of varied interests, including fossil fuel lobbyists, underscores the ongoing dialogue and debate that will shape our collective response to the climate crisis.

As the year comes to an end, we wanted to highlight the most relevant ESG controversies during 2023. This article zeroes in on these risks, showing their critical role in corporate ethics and responsibility. Throughout the year, we've seen a variety of governance-related challenges that highlight the urgent need for corporate accountability.

Governance Risks: Focus 2023

We highlighted the most significant governance risks in 2023. From tax evasion to ethical breaches such as bribery, these issues highlighted the growing importance of strong, ethical governance in corporate conduct.

Governance Controversies of 2023

Governance risks, though often overlooked, play a pivotal role in shaping corporate responsibility and ethical conduct. In 2023, several governance controversy trends emerged:

Money Laundering

Tax evasion was a major topic of discussion in the first quarter, highlighting the need for greater transparency and accountability within corporations.

Bribery

There was a significant increase in mentions related to bribery cases, underscoring the challenges in maintaining ethical governance standards.

Competitive Behavior

This year has witnessed a rise in competitive conduct controversies, with several companies being scrutinized. Antitrust violations, price manipulation, and digital advertising dominance are central to these disputes.

Top 5 Governance Controversies

These controversies are ranked by relative volume*.

• FTX
  

Volume of mentions: 8,085

Relative volume: 40%

FTX, a notable entity in the financial sector, found itself at the center of governance controversies. A significant portion of the discussions surrounding FTX's governance risks in 2023 pertained to allegations of its founder's involvement in bribery schemes. (source)

• Apple
  

Volume of mentions: 3,162

Relative volume: 28%

Apple, a tech giant, faced scrutiny as a third of its governance risk mentions revolved around antitrust violations reported in October 2023. (source)

• Microsoft
  

Volume of mentions: 4,429

Relative volume: 25%

Microsoft encountered legal challenges with its deal with Activision. The company had to approach the court to reject the FTC's request to halt the deal. (source)

• X (formerly Twitter)
  

Volume of mentions: 2,251

Relative volume: 18%

X/Twitter, another major player in the tech industry, faced legal challenges when a judge dismissed a shareholder lawsuit against Elon Musk concerning a Twitter buyout. (source)

• Google
  

Volume of mentions: 3,920

Relative volume: 13%

Google faced judicial sanctions for allegedly destroying evidence in an antitrust case, further emphasizing the critical governance challenges even major tech giants face. (source)

Conclusion

In 2023, governance issues, particularly tax evasion and bribery, significantly impacted the ESG landscape, challenging corporate integrity and highlighting the importance of strong ethical standards. For private equity firms and financial institutions, these developments emphasize the value of AI-powered governance analysis in identifying risks and promoting transparency and accountability. The insights gained from this year's governance controversies are important for steering towards more responsible and sustainable business practices in the future.
Remember to check out the top 5 environmental and social controversies of 2023.

Relative volume*: Relative to the total volume of E, S, or G risks for the company during the same period.

SESAMm’s AI Technology Reveals ESG Insights

Discover unparalleled insights into ESG controversies, risks, and opportunities across industries. Learn more about how SESAMm can help you analyze millions of private and public companies using AI-powered text analysis tools.

Corporate responsibility and sustainability are not just buzzwords anymore but integral aspects of business strategy. The importance of Environmental, Social, and Governance (ESG) compliance cannot be overstated. With the introduction of stringent and complex regulations like the CS3D, corporations face an unprecedented challenge in aligning their operations with these evolving standards. This is where Artificial Intelligence (AI) steps in, offering not just a solution but a transformative approach to staying ahead in the ESG compliance game.

The New ESG Compliance Challenge: CS3D Regulation and Beyond

The CS3D regulation marks a pivotal change in the corporate world, demanding greater diligence and transparency in sustainability practices. This regulation encompasses a broad spectrum of ESG aspects, from environmental impact to social responsibility and governance standards. It necessitates a comprehensive approach to due diligence, extending beyond the corporation to its entire supply chain. This means every partner, supplier, and stakeholder must align with these stringent standards, complicating compliance efforts.

However, CS3D is just the tip of the iceberg. Other regulations like the EU Green Taxonomy and the German Supply Chain Law further add layers to this complex regulatory tapestry. Each of these regulations brings its own set of challenges and nuances, making it increasingly difficult for corporations to keep pace using traditional compliance methods.

Understanding CS3D in Depth

Delving deeper into the CS3D regulation, it's clear that its impact is far-reaching. Corporations are now required to ensure their practices are sustainable and ethical and verify that their suppliers and partners adhere to similar standards. This means conducting thorough audits, maintaining a high level of transparency, and being accountable for the entire supply chain's ESG impact. The regulation also demands regular reporting and public disclosure of these practices, adding another layer of complexity to compliance.

Broader ESG Regulatory Landscape

While focusing on CS3D, it's essential to understand its place within the broader ESG regulatory landscape. Regulations like the EU Green Taxonomy, which classifies sustainable activities and investments, and the German Supply Chain Law, which focuses on human rights and environmental standards in supply chains, complement CS3D's objectives. Together, they create a comprehensive framework that guides corporations toward more ethical, sustainable, and socially responsible business practices.

AI: A Game-Changer in ESG Compliance

The advent of AI technologies has opened new avenues for corporations to manage their ESG compliance needs effectively. AI's capability to process vast amounts of data, identify patterns, and predict outcomes is invaluable in navigating the complexities of ESG regulations.

Real-Time Controversy and Reputational Risk Monitoring

One of the most significant advantages of AI in ESG compliance is its ability to monitor and analyze textual data in real-time. This is crucial in the context of regulations like CS3D, where ongoing vigilance is necessary. AI algorithms can sift through vast amounts of text data from various sources – news, reports, social media, etc., to identify potential controversies and non-compliance issues. This proactive approach enables corporations to address issues before they escalate, ensuring continuous alignment with regulatory standards.

Enhanced Supply Chain Management

Another critical area where AI makes a significant impact is in supply chain management. Under regulations like CS3D, corporations must ensure that their entire supply chain complies with ESG standards. AI-driven tools can analyze supplier data, audit reports, and other relevant information to provide a comprehensive view of the supply chain's compliance status. This helps identify potential risks, assess supplier performance, and make informed decisions about partnerships and procurement strategies.

Case Studies and Success Stories

Illustrating the power of AI in ESG compliance, several corporations have successfully leveraged these technologies to meet regulatory requirements. For instance, a leading multinational company used AI-driven analytics to monitor its global supply chain, ensuring compliance with CS3D and other ESG regulations. The AI system provided real-time insights into supplier practices, flagged potential risks, and enabled the company to take proactive measures to maintain compliance.

SESAMm: Pioneering AI-Driven ESG Compliance

At SESAMm, we specialize in providing AI-powered solutions tailored to the unique challenges of ESG compliance. Our flagship product, TextReveal, is a testament to our commitment to innovation in this field.

SESAMm utilizes advanced natural language processing and machine learning algorithms to analyze unstructured data from multiple sources. It provides actionable insights that help corporations monitor ESG risks, understand regulatory changes, and maintain compliance. By leveraging TextReveal, corporations can:

• Continuously monitor global news, social media, and other data sources for ESG-related risks and opportunities.
• Conduct thorough sentiment analysis and trend forecasting to anticipate potential compliance issues.
• Gain a deeper understanding of the ESG landscape and the evolving regulatory requirements.

Partnering for Success

Our partnership with leading corporations and financial institutions exemplifies the effectiveness of our AI-driven approach. By collaborating with SESAMm, these organizations have enhanced their ESG compliance strategies, effectively navigated the regulatory landscape, and made more informed decisions.

Staying ahead of the curve in the rapidly evolving world of ESG compliance is not just about meeting regulatory requirements – it's about leading the way in corporate responsibility and sustainability. AI technologies, with their unparalleled capabilities in data analysis and predictive insights, are the key to this leadership.

As pioneers in AI-driven ESG compliance solutions, SESAMm is committed to helping corporations navigate these challenges. Our innovative tools and expertise are designed to empower you to meet and exceed regulatory standards confidently. We invite you to explore the potential of AI in transforming your ESG compliance strategy and join us in shaping a more sustainable, ethical, and compliant corporate future.

SESAMm’s AI Technology Reveals ESG Insights

Discover unparalleled insights into ESG controversies, risks, and opportunities across industries. Learn more about how SESAMm can help you analyze millions of private and public companies using AI-powered text analysis tools.

It’s been an action-packed year at SESAMm, and being the data lovers that we are, we ran the numbers and found that we:

• Added 9 million documents to our data lake...every day!

• Identified 600,000 ESG controversies

• Enriched and added 4 new languages (Albanian, Serbian, Croatian, and Hungarian) to the data lake, which already includes Chinese, Russian, French, and more.

Check out this infographic below for more stats.

SESAMm’s AI Technology Reveals ESG Insights

Discover unparalleled insights into ESG controversies, risks, and opportunities across industries. Learn more about how SESAMm can help you analyze millions of private and public companies using AI-powered text analysis tools.

As 2023 draws to a close, it's mind-blowing to reflect on the year's events. SESAMm experienced a remarkable year, beginning with a successful funding round in a challenging fundraising climate. We're grateful to our long-standing investors who renewed their trust by investing again and to our new investors who share our vision and have joined us on our journey.

Our mission, though consistent, has expanded to place greater emphasis on ESG. We see the combination of AI and ESG as crucial to the future of responsible investment and sustainable development. At SESAMm, we're committed to leading the way towards a more sustainable future.

To our esteemed C-suite team – my cofounders Pierre Rinaldi COO & Florian Aubry CTO, Marie-Charlotte Deucher CFO, Jorge Alvarez CMO, Eric Sionnet CDO – I am impressed by the successes you have achieved in 2023 and by your exceptional capacity to scale up and lead change across your teams and throughout the organization.

To the SESAMm team, I want to share my deepest appreciation to each and every one of you for your dedication, and unwavering commitment to our shared mission.

This year was filled with activity. We identified over 600k ESG controversies to aid our clients and partners, expanded our data lake by over 3 billion documents, won 5 prestigious awards, including placements on the ESG Fintech 100 and CB Insights Fintech 100 lists, and integrated Generative AI capabilities.

A highlight of the year was our ESG-focused team-building event in Belgium in September. Gathering with our global team for a few days of bonding and learning was an unparalleled experience.

None of this would have been possible without our investors, clients, advisors, and collaborators. Your support fuels our daily motivation to innovate and create. We have a strong vision that can only be realized with your continued partnership. Thank you for being a part of SESAMm in 2024!

We wish you a restful holiday season filled with joy and time spent with loved ones.

Sylvain Forté

CEO & Co-founder

SESAMm

SESAMm’s AI Technology Reveals ESG Insights

Discover unparalleled insights into ESG controversies, risks, and opportunities across industries. Learn more about how SESAMm can help you analyze millions of private and public companies using AI-powered text analysis tools.

As the year closes, it's time to reflect on some of your favorite pieces of content, so we've compiled a list of the top 8 blog posts highlighting the most popular and insightful content we've published. From investor guides to detecting greenwashing practices, these posts have resonated with you, our readers, and hopefully, continue to provide valuable information and inspiration. Join us as we look back at the top 8 posts of the year and see what made them stand out.

#8 What Investors Ought to Know About Knowledge Graphs: The Core of Text Analysis

This piece explains the pivotal role of knowledge graphs in enhancing text analysis for investors. It clarifies how these graphs contribute to a more nuanced understanding of data, aiding in investment decisions. Readers appreciated the clear, practical insights into how knowledge graphs strengthen SESAMm’s cutting-edge AI technology.

#7 It’s 2023, AI Innovation is Here and Only Getting Better

In this article, Sylvain Forté presents an optimistic view of the future of AI in the financial sector, focusing on the rapid advancements in AI. He discusses how these technologies are evolving and what this means for investors and companies alike. Readers were captivated by the forward-looking perspective and practical implications of these innovations.

#6 What Investors Ought to Know About SDGs & AI: A Quick Guide

This article serves as a guide on the relationship between Sustainable Development Goals (SDGs) and AI. It explains how AI facilitates the identification and tracking of SDG-aligned investment opportunities. Our audience found the straightforward approach and practical examples particularly enlightening for understanding the intersection of sustainability and technology.

#5 SESAMm Incorporates Generative AI to Enhance ESG Risk Mitigation and Process Efficiency in the Finance Sector

Highlighting SESAMm's innovative approach, this piece details the incorporation of generative AI into ESG risk mitigation. It underscores the significant improvements in process efficiency and accuracy, which resonated well with our audience, particularly those keen on technological advancements in finance.

#4 How Successful Investors Are Using AI to Get ESG Data: A Quick Guide

This guide offers a practical look at how AI is revolutionizing and simplifying ESG data for investors. It provides real-world examples and strategies, making it a favorite among readers for its direct application in their investment processes.

#3 How Organizations Are Using AI To Detect Greenwashing

This article addresses the increasingly relevant issue of greenwashing, showcasing how AI tools are employed to detect and mitigate it. The relevance of this topic in today’s sustainability-focused investment landscape made this article highly popular among our readers.

#2 ebook: Unmasking Greenwashing: How to Identify Genuine and Deceiving Sustainability Initiatives with AI

This comprehensive ebook gained popularity for its detailed exploration of AI’s role in distinguishing between genuine and deceptive sustainability initiatives. It provided readers with a deeper understanding of the intricacies involved in evaluating sustainability claims, making it a valuable resource. Download the ebook.

#1 SESAMm Raises €35M in Series B2 to Grow its ESG and Sentiment Analysis Business

Topping our list is the announcement of SESAMm’s Series B2 funding. This milestone article not only signifies SESAMm's growth and success but also reflects the increasing importance of ESG and sentiment analysis in the financial world. The article’s blend of business success and industry relevance made it the year’s highlight for our readers.

Thank you for reading through this year's eight most popular blog posts. Which is your favorite, and how would you rate them?

Let us know what you think on Twitter or LinkedIn.

As we reflect on the year 2023, it's important to highlight the most significant ESG controversies that made headlines. Our last article in this series focused on the environmental aspect. This time, we turn our attention to the social pillar of ESG, focusing on issues such as strikes, layoffs, human rights violations, and discrimination against minority groups. We emphasize the need for accountability and action to address these pressing social issues and promote social responsibility.

Social Risks: Focus 2023

In 2023, social risks were the most significant, with layoffs and strikes gaining significant attention. It's crucial to acknowledge these social risks and take accountability and action to address them, as they underscore the urgent issues facing society.

Social Controversies of 2023

Social risks have taken the forefront in 2023, with notable web mentions increasing significantly. Here are the most relevant controversial topics:

Social Dialogue

Social discourse intensified at the start of the year, with news of widespread strikes in various sectors, including aviation and education, primarily driven by pay disputes. The wave of layoffs in several tech companies was the talk of the town, especially during the first quarter of the year.

Respect for Human Rights

The year saw an uptick in mentions related to human rights, especially controversies surrounding racism, data privacy violations, sexual harassment, and breaches of GDPR.

Diversity and Inclusion

Discrimination against minority groups, including the LGBTQ community and people of color, and age-based discrimination became a significant topic of discussion in 2023.

Top 5 Social Controversies

These controversies are ranked by relative volume*.

• McDonald's
  

Volume of mentions: 8,903

Relative volume: 87%

McDonald's faced substantial social risks in 2023 due to significant layoffs of its corporate staff in April. The move led to public concern and discussions around the company's employment practices and stability. (source)

• Google
  

Volume of mentions: 13,504

Relative volume: 43%

Google found itself in the spotlight as it faced challenges related to major layoffs in January and October of 2023. These layoffs contributed to almost half of the social risk mentions associated with the tech giant. (source)

• Meta
  

Volume of mentions: 10,965

Relative volume: 38%

Meta, formerly known as Facebook, also faced scrutiny as 38% of the company's social risk mentions revolved around layoffs that took place in March and October 2023. (source)

• Microsoft
  

Volume of mentions: 6,060

Relative volume: 28%

Microsoft faced challenges due to disruptions caused by cyberattacks in early June. In addition, the company had to navigate through controversies related to layoffs, contributing to its social risks. (source)

• X (formerly Twitter)
  

Volume of mentions: 7,246

Relative volume: 8%

X/Twitter experienced a global outage, which was followed by significant layoffs. These events led to considerable public discussions and social risks for the company. (source)

Conclusion

In summary, environmental risks remain a major concern for ESG, but the social pillar of ESG has become increasingly critical, especially in 2023. As we move forward, it's important for companies to acknowledge and address social risks, such as layoffs, strikes, human rights violations, and diversity and inclusion issues. By promoting social responsibility, companies can make a positive impact on society, create a more sustainable future, and enhance their reputation as socially responsible organizations.

Click here to learn about the top environmental and governance controversies in 2023.

Relative volume*: Relative to the total volume of E, S, or G risks for the company during the same period.

SESAMm’s AI Technology Reveals ESG Insights

Discover unparalleled insights into ESG controversies, risks, and opportunities across industries. Learn more about how SESAMm can help you analyze millions of private and public companies using AI-powered text analysis tools.

For nearly three decades, the world has annually witnessed an event of critical importance for the future of our climate: the Conferences of the Parties, better known as the COP. First held in 1995 following the adoption of the United Nations Framework Convention on Climate Change at the Earth Summit in Rio in 1992, these conferences bring together nations that have ratified this treaty in a collective effort to combat climate change, a phenomenon increasingly evident in our daily lives.

Among these conferences, two stand out for their significant impact. The first COP3, held in Kyoto in 1997, marked a turning point with the near-unanimous adoption of the Kyoto Protocol. This agreement, which came into force in 2005 after intense negotiations, mandated signatories to reduce greenhouse gas emissions by at least 5% by 2012. Despite its legally binding nature, some countries attempted to diminish its ambition, and others, like the United States, never ratified it. Canada withdrew from the treaty in 2011, citing the discovery of highly polluting tar sands in Alberta. At the 2012 Doha conference, the Kyoto Protocol was extended until 2020 despite the absence of the US agreement.

COP15, held in Copenhagen in 2009, acknowledged for the first time the necessity of limiting global warming to 2°C above pre-industrial levels and proposed the creation of a Green Climate Fund endowed with 100 billion US dollars annually until 2020. Unfortunately, this initiative lacked legal enforcement and clear rules for fund allocation. By 2014, after the Lima conference, the Green Climate Fund had only amassed 10 billion US dollars.

Then came COP21 in 2015 in Paris, one of the most well-known conferences, which led to the landmark Paris Climate Agreement. This agreement set three primary goals:

1. Limit Temperature Rise: Keep the global temperature rise well below 2 degrees Celsius above pre-industrial levels while pursuing efforts to limit it to 1.5 degrees Celsius.
2. Adapt to Climate Impacts: Enhance the ability of countries to adapt to climate change impacts, focusing on resilience and adaptive capacity, especially in vulnerable regions.
   
3. Align Financial Flows: Redirect financial flows towards low greenhouse gas emissions and climate-resilient development, ensuring consistent support for mitigation and adaptation.

Once again, the agreement was not, or only minimally, binding: Participant countries were encouraged to define their "Nationally Determined Contributions" to be re-evaluated and submitted to the UN every five years, with each submission expected to be more ambitious than the last. The only legal obligation was the transparency of national contributions and their evaluation by experts.

The Paris Agreement, however, paved the way for landmark climate litigation, including a significant case in the Netherlands where a foundation sued the Dutch government for reducing its climate ambitions. The government lost, with the European Convention on Human Rights forming the legal basis of the decision.

From Words to Deeds: The Struggle for Effective Climate Change Policies at COP28

The climate is a highly complex system with significant inertia; actions taken today might only manifest their effects in a century! As of 2020, global warming is estimated to be around +1.2°C, with an increase of approximately +0.2°C per decade.

Current policies are steering us toward a +3°C increase, underscoring the need for a COP that results in a binding agreement backed by major powers and supported by financial measures. Former UN Secretary-General Ban Ki-Moon had suggested a global tax on financial transactions to fund the Green Climate Fund.

There is also hope for new agreements to ban subsidies for fossil fuels. However, the fact that COP28 is set to take place in the United Arab Emirates, chaired by the CEO of the national oil company, sends a mixed message. It is crucial that Gulf countries play a significant role on the international stage, especially given the recent escalation of the Israeli-Palestinian conflict in late 2023, highlighting their pivotal role in both international peace and climate change issues. On the latter, the trajectory is concerning: 181 million tons of oil were extracted in 2022, an increase of nearly 11% in a year, and gas extractions, though stable over the past year, have risen by 9% since 2012.
COP28, therefore, faces legitimate criticism, with the most significant being that the conference could be an exercise in greenwashing. Recent allegations reported by the BBC suggest potential misuse of the COP presidency to secure new oil and gas contracts.

Finally, responsibility contributions remain unresolved: the "Economic North" is primarily responsible for climate change, yet those who will suffer the most are the countries of the "Global South." Some island nations are even at risk of disappearing due to rising sea levels caused by climate change, and certain areas could become uninhabitable by 2050 due to extreme temperatures and humidity, preventing natural cooling processes like sweating. Addressing loss and damage will also be a central point at the conference.

Stay tuned for the second part summarizing the debates and agreements done at COP 28.

Environmental, social, and corporate governance practices have been under scrutiny for the past year. In this article, we focus on the most significant ESG controversies related to the environment. Our research provides a detailed overview of the top environmental issues that surfaced during the year, highlighting the most talked-about controversies and the companies involved. We dive into each of these issues, analyzing their impact on the environment.

Environmental Risks: Focus 2023

We outlined the prominent risks in 2023: social risks, with layoffs and strikes gaining attention; environmental risks, marked by wildfires and oil spills; and governance risks, where tax evasion and ethical violations like bribery were in focus. Each risk category underscores the urgent issues facing society and the need for accountability and action.

Environmental Controversies of 2023

Environmental risks may not match the sheer number of mentions that social risks receive, but their presence in discussions has steadily grown over the year, particularly in the third quarter. Let's explore the most common controversies that have emerged.

Climate Change and Policy

Climate change dominated environmental discussions in 2023. A noticeable peak in mentions arose in the latter half of the year, particularly around heatwaves and debates surrounding climate policies.

Atmospheric Emissions

September saw increased discussions about atmospheric emissions, notably due to the emissions from volcanic eruptions,  hybrid cars, and the discovery of toxic metals in food products.

Impact on Biodiversity

The wildfires that spread in June sparked significant debates around their impact on biodiversity, leading to increased mentions and concerns related to environmental preservation.

Top 5 Environmental Controversies

These controversies are ranked by relative volume*.

• Marathon Petroleum
  

Volume of mentions: 62

Relative volume: 69%

A significant portion of environmental risk discussions surrounding Marathon Petroleum was due to its chemical leak in Garyville. This incident led to massive fires, so large they could be observed from space. (source)

• Nestlé
  

Volume of mentions: 30

Relative volume: 54%

Nestlé faced scrutiny in 2023, with over half of its environmental risk mentions associated with drought controversies. The company was urged to cease its water mining activities following severe droughts in France. (source)

• Coca-Cola
  

Volume of mentions: 178

Relative volume: 53%

Coca-Cola garnered attention due to a hydrochloric acid leak in January 2023, leading to significant environmental concerns. (source)

• ExxonMobil
  

Volume of mentions: 571

Relative volume: 31%

Exxon, along with Guyana’s environmental agency, was implicated in breaches of oil spill insurance policies. (source)

• Shell
  

Volume of mentions: 872

Relative volume: 23%

An oil spill from a Shell pipeline adversely affected farms and a river in a region of Nigeria already grappling with pollution. (source)

Conclusion

Environmental risks remain a significant concern for companies in various industries. The top 5 environmental controversies in 2023 were not only related to oil and gas companies but also included companies in other industries, such as Nestlé and Coca-Cola. These incidents underscore the importance for businesses to prioritize sustainability and take responsibility for their impact on the environment. By adopting sustainable practices and reducing their environmental footprint, companies can mitigate future risks and ensure long-term success.
Make sure to read the full article, which includes top controversies for social and governance topics here.

Relative volume*: Relative to the total volume of E, S, or G risks for the company during the same period.

SESAMm’s AI Technology Reveals ESG Insights

Discover unparalleled insights into ESG controversies, risks, and opportunities across industries. Learn more about how SESAMm can help you analyze millions of private and public companies using AI-powered text analysis tools.