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Originally published on NRDC Expert Blog.
By Sarah Dougherty,  Tom Zimpleman, & Gabriel Daly 

G7 leaders met in the UK last week, and climate was high on the agenda, as it must be. One of the areas of agreement among the leaders of the world’s largest economies might seem new but has been in the works for years: mandatory climate disclosures from companies.

The US has broad disclosure laws, which allow the Securities and Exchange Commission (SEC), as a regulator of stock exchanges and stock sales, to require companies to provide the public with information that can help us make decisions, like about a company’s finances, operations, how it compensates executives, and how it is run. Climate change is an issue on which the SEC needs to require more disclosure — and the Chair of the SEC has indicated he and the Commission intend to require companies to disclose how climate change affects the risks and opportunities they face. The SEC is expected to issue a rule later this year. We think it is about time: NRDC has been pushing for more disclosure on environmental issues since 1971. And, it matters to investors with a recent CFA Institute survey finding 40 percent of investment professionals already incorporating climate risk to inform their investment decisions.

As part of our advocacy for mandatory climate disclosure, NRDC submitted comments to the SEC’s recent request for information. Only mandatory disclosures will allow the SEC to meet its mandate: “to protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation.” If investors do not know the climate risks — and opportunities — that the companies they are invested in may face, it’s hard to see how investors can be protected and markets can function efficiently.

As we explained in our comments, new rules need to require each company to disclose:

  • the full scope of its greenhouse gas (GHG) emissions. This includes GHG emissions from assets that it owns, like factories, buildings, or transportation fleets; GHG emissions from the power is uses to run its factories and buildings; and GHG emissions from using the products it makes (in the case of manufacturers) or the investments it makes (in the case of banks or investment companies).
  • the company’s projections about how realistic climate change scenarios will affect the company. Climate change is likely to result in more widespread flooding, wildfires, and more powerful hurricanes. Those events can damage property, disrupt supply chains, and hurt employees. But climate change may also lead to a shift to more sustainable products, alternative energy sources, and new business opportunities. Investors need to know how companies are planning for these possibilities.
  • how the company’s operations affect communities vulnerable to climate change.

These disclosures would give investors information that’s useful for their decisions, allowing investors to identify companies (and industries) taking the risks of climate change seriously and planning accordingly. Investors would be better able to allocate capital efficiently to companies that are responsibly planning for the physical risks climate change is already creating — like wildfires and sea-level rise — as well as the transitions risks — changes in policy, consumer preferences, prices, and the like — that our collective response to climate change is likely to impose. And as we know, the costs of climate change will be — and are already — borne disproportionately by low-income communities and communities of color. Disclosures could provide information and insights into how different stakeholders may be impacted by climate change, including vulnerable communities. Additionally, shifting financial incentives away from climate-harming investments is one step towards alleviating those burdens on vulnerable communities.

A voluntary system, which has been in effect for about 15 years, was a good start. But voluntary disclosure has not generated important information nor made it easy to compare between companies. Requiring that companies disclose the risks their businesses face from, and contribute to, climate change will produce information comparable across companies and industries, allowing investors and the public to make better-informed decisions.

In their communique summarizing the G7 meeting, the G7 leaders highlighted their agreement on the importance of climate disclosures:

“We emphasise the need to green the global financial system so that financial decisions take climate considerations into account. We support moving towards mandatory climate-related financial disclosures that provide consistent and decision-useful information for market participants and that are based on the Task Force on Climate-related Financial Disclosures (TCFD) framework, in line with domestic regulatory frameworks.”

Ensuring that investors know the climate risks of the companies they own or may consider purchasing is an obvious first step to greening the global financial system. We are glad the G7 leaders agree and are working to make it happen in the world’s largest economies.

Polaris Ranger EV supports security operations at G7 Summit: “The G7 Summit was the largest operation in Devon and Cornwall Police history, with a total of 6,500 officers and staff on duty from all over the UK. We worked extremely hard to minimise the impact on the community around Cornwall, and as part of those efforts, we enlisted a fleet of electric Polaris Ranger vehicles to patrol and monitor the beaches and other hard to reach areas. Being completely electric off-road vehicles, they were the perfect choice for use on sand and provided our officers with the ideal solution for maintaining security without noise, pollution or disruption to the local community.” Image courtesy of Polaris.


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Subaru is jumping into the electric hot hatch craze

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Subaru is jumping into the electric hot hatch craze

Subaru is teasing a new electric hot hatch that will spearhead a new generation of STI. Is it the WRX STI we’ve been waiting for?

Subaru teases new electric hot hatch

In March 2022, fans were disappointed after Subaru announced plans to end production of the gas-powered WRX STI.

Subaru said the move was due to the shift toward electrification and stricter emissions regulations in places like Europe.

Although the Japanese automaker said at the time it was exploring opportunities for a next-gen WRX STI, including an electrified version, Subaru confirmed it will not be produced on the new WRX platform.

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It’s been over three and a half years, but we might finally see the WRX STI return in electric form. After teasing a new electric hot hatch on Wednesday, Subaru said the Performance-E STI concept will spearhead a new generation of vehicles.

The image offers a glimpse of Subaru’s new design with slim, three-line LED lights and a sportier roofline compared to the internal combustion engine (ICE) version that Subaru also previewed.

Subaru-electric-hot-hatch
Subaru teases new Performance-E STI concept ahead of the Japan Mobility Show (Source: Subaru)

Subaru is keeping most details secret for now, but said the new electric hot hatch offers “a design that evokes the brand’s heritage while providing a driver-friendly layout and a comfortable, spacious interior.” It will be equipped with new tech, offering “intuitive, exhilarating driving experiences,” the company said.

Subaru will unveil the new STI concepts at the Japan Mobility Show later this month. Atsushi Osaki, Subaru’s president, will deliver a press conference at the Subaru booth on October 29 at 12:30 PM (JST).

Subaru-electric-hot-hatch
Subaru teases two new STI concepts, an EV and an ICE version (Source: Subaru)

The booth will feature the two new STI models, alongside the Trailseeker, Subaru’s second global EV. It will also showcase more rugged Forester Wilderness and Outback Wilderness prototypes, as well as a 1982 Subaru GL Family Huckster.

Subaru is joining Hyundai, Volkswagen, Kia, and a few other automakers planning to introduce new electric hot hatches.

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Tesla is finally running TV ads, but they are not for its electric cars

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Tesla is finally running TV ads, but they are not for its electric cars

Tesla is finally running TV/streaming ads, but they are not to sell electric cars. They are to promote a vote for Tesla shareholders to approve Elon Musk’s next compensation package worth up to $1 trillion.

As a company, under Elon Musk’s leadership, Tesla has famously been against advertising. The CEO is even on the record saying that he “hates advertising” and that “other companies spend money on advertising and manipulating public opinion, Tesla focuses on the product.”

However, that was before he acquired Twitter, now X, which relies heavily on advertising.

After that, he started to push Tesla to do some advertising, but the company quickly stopped or greatly reduced its advertising efforts.

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Last month, we reported that Tesla’s advertising effort picked back up with ads to encourage Tesla shareholders to vote for Musk’s new unprecedented CEO compensation package worth up to $1 trillion.

The renewed advertising effort was limited to Google and social media ads or sponsored posts, which was also the case in Tesla’s previously mentioned advertising efforts.

Now, Tesla is even running TV-like ads on streaming services. Paramount+ watchers were surprised to see this ad running on the streaming service this week:

This is one of the very first TV-style video ads that Tesla is paying to air, but it is not to sell EVs.

While the automaker is struggling to sell its existing vehicles, the ad exclusively features future products that are not yet available for sale, and it serves only to ask shareholders to vote in accordance with the board’s recommendation at the upcoming shareholders’ meeting.

Electrek’s Take

It’s funny because I was talking to a friend of mine who came back on a long rural road trip with his Cybertruck last week.

He was saying that he was surprised how many people in rural areas not only didn’t know about the Cybertruck, but they didn’t even know much about Tesla. Yet, they were curious about it and electric vehicles in general.

We were discussing how these people are not as active on social media, and that Tesla would greatly benefit from advertising its vehicles in more traditional channels, such as TV/streaming ads, with clear messaging that relates to them, such as the cost of ownership and utility.

I joked that Tesla will do TV ads about Elon’s compensation plan before they do about their EVs. It literally took less than a week for Tesla to prove me right.

There is just no reasonable justification for this. It’s as simple as Elon is bigger than Tesla, a company of 100,000+ people.

You can’t make a viable argument against the fact that this would be money better spent advertising Tesla’s available cars when the company is currently operating its production lines at 60% capacity and the compensation package would be better spent on tens of thousands of full-time employees whose contribution to Tesla is much greater than Elon’s at this point.

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Toyota lands $20 million to bring this pint-sized EV with a solar roof to life

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Toyota lands  million to bring this pint-sized EV with a solar roof to life

Toyota’s smallest electric vehicle might actually hit the road. Thanks to new funding from the UK government, Toyota is one step closer to turning this pint-sized EV with a solar roof into a reality.

The Toyota FT-Me is a micro EV with a solar roof

It may be only 2.5 meters (98″) long, but Toyota believes the tiny electric car could be an affordable way to zip around the city.

The FT-Me is “a ground breaking concept” that blends premium design with affordability, Toyota said after unveiling it in March.

After securing a £15 million ($20 million) investment from the UK government’s DRIVE35 program, Toyota is moving closer to actually launching the pint-sized EV.

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The Advanced Propulsion Centre UK, which manages the funding, announced that the £30.3 million ($40,500) project includes a £15 million grant from the Department for Business and Trade. Toyota is expected to fund the other roughly £15 million.

Toyota is working with several partners, including urban delivery specialist ELM Mobility and the University of Derby, to develop a new lightweight battery electric vehicle (BEV) in the L6e category.

Toyota-FT-Me-EV
Toyota FT-Me micro EV (Source: Toyota)

Meanwhile, Savcor will design and develop the solar roof, which Toyota claims can extend a vehicle’s range by 20%, or about 20 to 30 km per day.

The pint-sized EV will be manufactured at Toyota Manufacturing UK’s Burnaston site, where it currently builds the Corolla.

Toyota-EV-solar-roof
Toyota FT-Me micro EV concept (Source: Toyota)

Although it’s about the size of a golf cart, Toyota promises the micro EV fits two passengers comfortably. The company also claims the FT-Me’s propulsion system uses 3X less energy per km than current high-capacity electric vehicles.

Toyota-EV-solar-roof
The interior of the Toyota FT-Me EV concept (Source: Toyota)

Inspired by a jet helmet, Toyota said the vehicle’s compact design makes it perfect for getting around the city. It only takes up about half a parking spot.

Toyota’s pint-sized EV could arrive as a potential rival to the Citroen Ami. The Ami starts at £7,695 ($10,000) OTR, offering a WLTP range of up to 46 miles.

Would you buy Toyota’s micro EV for about $10,000? It could be a fun (and efficient) way to zip around town. It’s basically a futuristic electric golf cart with a solar roof. Unfortunately, it likely will never make it to the US with America’s growing love for big trucks and SUVs.

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