EcoCREDIT Weekly Sustainability Wrap Up — May 19, ‘22
We’ve had a wild week in the crypto markets. The word “sustainability” doesn’t come to mind as one of the largest algorithmic stable coins by volume dramatically collapsed. After briefly touching a valuation north of $35 billion, the Terra Luna ecosystem fell on the sword of UST, with hyperinflation winning the day. With a scenario resembling Weimar Germany, the network has been officially paused as the admittedly pompous founder and beleaguered community seek answers and reprise.
The news was less dramatic and intense when it comes to ecological sustainability.
The Climate of Contracts
Kids can sometimes get away with not brushing their teeth before bedtime. While not the best move for their dental health, it’s exceedingly rare that judicial proceedings follow, much to the chagrin of dentists and lawyers.
The same can’t be said for corporate contracts. When a legal entity signs a contract, they’re obligated to live up to the letter of the document. Any deviation can result in arbitration or legal action, ensuring that a binding signature remains just that: binding.
The Chancery Lane Project knows this quite well, and they’ve been doing some amazing work! They’ve created a modular database of climate-centric contract clauses with over 2500 legal professionals collaborating, largely pro bono. This toolkit makes it easy for legal entities to implement binding components to their contracts that obligate them to work on climate change. No more redundant and vague promises when it comes to climate action!
ESG, For You And Me?
Disclaimer: We’re committed to sustainability, full stop. Whether we call it ESG, Greenification, or Ecological Responsibility, taking sustainable action is something our global society and planet desperately need. With that said, there’s no getting around the human component of sustainability, which inevitably entails self-interest and a bit of drama.
Enter Elon Musk, whose company, Tesla, was recently booted from the ESG Index. The Index cited issues with autonomous driving safety standards and working conditions in Tesla factories. However, this explanation wasn’t sufficient for Musk, who correlated the move with his recent foray into the world of social media giant acquisition. Musk called the Index a scam, claiming that the tool has been weaponized to push a political agenda.
Whether an earnest move by the Index or a conspiratorial strategy, as Musk claims, the drama that seems to follow the world’s richest man leaves nobody wanting for entertainment! If the underlying sustainable actions continue to increase globally, as they have thus far, we’re contented to watch the fireworks.
Food Trade Fascination
It’s generally common knowledge, or at least belief, that as the developed world imports and trades food and perishable goods, the developing world suffers. Well, it turns out that’s not exactly the case, at least when it comes to biodiversity. A study conducted by Michigan State University found that as the developing world imports food, less local land gets used for agriculture. Given that such transformations often entail slash and burn approaches, this translates to outsized gains in conservation.
The study runs counter to the current orthodoxy that the developed work is an intrinsic value extractor and highlights the growing complexity of the global food trade. Nations without biodiversity hotspots tend to export greater amounts of food to nations that maintain such hotspots, further shielding our planet’s increasingly delicate ecosystem. It’s encouraging to hear some great news about our existing global supply chains having a positive impact on the natural world.
Wrap Ups’ Wrap Up
From drafting sustainable contracts to avoiding biodiversity collapses, sustainability never stops! It’s always a breath of fresh air to learn that our existing actions contribute to climate-positive results. On the other hand, the social drama in any industry can be entertaining or tiring depending on the mood and day of the week. Regardless, the trend remains clear. Our species continues to build a more harmonious coexistence with our natural environment.
Find some interesting articles or news that pertains to sustainability? Send ’em over! Comment below and/or make sure to connect with us on social media. We promise to keep you up to date with the latest and greatest in the industry. Let’s keep up the fantastic momentum and strive for a world where sustainability is implied and executed in every action we take!