November brought major developments in corporate climate accountability, technological progress in green steel production, and rising ESG-related litigation. These shifts signal greater scrutiny on sustainability claims, increased adoption of low-carbon materials, and higher legal risks for non-compliant companies. Key developments include:
- Stronger enforcement of corporate net zero commitments: Governments and investors are demanding verifiable progress, not just pledges.
- Breakthroughs in green steel production: Mining and construction industries must prepare for a shift toward low-carbon materials.
- Rise in ESG litigation: Lawsuits against companies for greenwashing, biodiversity damage, and climate inaction are increasing.
These trends present both risks and opportunities, requiring proactive adaptation from industry leaders.
Net Zero Accountability: From Promises to Performance
Governments and investors are cracking down on companies that fail to deliver on net zero pledges. Businesses must now prove emissions reductions with data and avoid misleading sustainability claims.
Case Study: The Australian Competition and Consumer Commission (ACCC) issued penalties to multiple companies for misleading net zero claims, including a $15 million fine for a mining firm that overstated its carbon offset impact (ACCC, 2023).
Industry Response
- BHP introduced third-party verification of its emissions data to ensure transparency.
- Santos scaled back its carbon offset reliance after investor pressure and instead invested in CCS (Carbon Capture & Storage) technology.
- Lendlease updated its net zero roadmap, ensuring measurable milestones and independent audits.
Executives must refine sustainability strategies to meet regulatory scrutiny and investor expectations.
Green Steel Advancements: The Shift Toward Low-Carbon Construction Materials
Steel production contributes 7-9% of global CO₂ emissions, making it a major target for decarbonisation. November saw key breakthroughs in green steel technology, signalling an industry-wide shift.
Case Study: Sweden’s HYBRIT project (backed by SSAB, LKAB, and Vattenfall) successfully produced fossil-free steel using hydrogen, delivering its first batch to Volvo for use in automotive manufacturing (SSAB, 2023).
Industry Response
- Fortescue Metals announced plans to export green iron ore, reducing emissions for downstream steelmakers.
- BlueScope Steel committed to building Australia’s first commercial-scale green steel plant by 2030.
- Multiplex started testing low-carbon steel materials in construction projects to meet sustainability targets.
Mining and construction firms must prepare for a market transition, investing in low-carbon alternatives to remain competitive.
ESG Litigation Risks: The Cost of Greenwashing and Environmental Harm
Companies face growing legal risks related to greenwashing, environmental destruction, and climate inaction. Governments and NGOs are using litigation as a tool for accountability.
Case Study: A lawsuit against Woodside Energy alleged that its gas expansion projects violated human rights due to climate-related harm. The case set a precedent for legal challenges against fossil fuel developments (Environmental Defenders Office, 2023).
Industry Response
- Rio Tinto enhanced its biodiversity offset programs to avoid legal action related to land degradation.
- AGL Energy revised its climate transition plan after shareholders filed lawsuits for misleading net zero claims.
- Downer Group introduced stricter due diligence on environmental impact assessments to mitigate legal risks.
Executives must prioritise compliance, transparency, and risk mitigation to avoid costly litigation and reputational damage.
Strategic Imperatives for Executives
- Ensure Net Zero Compliance: Back sustainability claims with verifiable data and independent auditing.
- Invest in Low-Carbon Materials: Prepare for a shift toward green steel and sustainable construction materials.
- Strengthen Legal Risk Management: Review sustainability commitments to avoid greenwashing claims and regulatory fines.