Our GaiaLens controversy detection platform has caught 222 controversies in the past 2 weeks. From controversial waste management projects to emissions reporting discrepancies, this article examines five key ESG news stories that are currently capturing investors' attention and shaping the corporate responsibility narrative.

Danone’s Plastic Predicament

Danone's controversial plastic waste management project in Bali, Indonesia, has been terminated, highlighting the urgent need for a comprehensive global plastics treaty. The project, which aimed to process plastic waste and generate energy, faced significant opposition from the local community and environmental groups.

The Integrated Waste Processing Facility (TPST Samtaku Jimbaran) in the Angga Swara neighborhood of Jimbaran, Bali, was part of Danone's initiative to claim plastic credits through Verra's certification scheme. However, the facility became a source of severe pollution and health issues for the local residents.

Community members complained about foul odours, toxic air, and environmental breakdown for nearly two years. They also raised concerns about irregularities in the permitting process, including allegations of forged signatures. The situation escalated when the facility caught fire in July 2024, reportedly due to a dispute between Danone's partners.

Danone eventually withdrew from the project and ceased its involvement in funding and operations, due to mounting pressure from the local community and environmental organisations, who criticised the project for its negative impacts and questioned the validity of plastic credit schemes.

The failure of this project underscores the complexities of plastic waste management and the potential pitfalls of corporate-led initiatives. It also highlights the need for a binding global plastics treaty that addresses the entire lifecycle of plastics, from production to disposal, and prioritises the health and well-being of communities and ecosystems.

As negotiations for a global plastics treaty continue, the Bali case serves as a stark reminder of the importance of transparent, community-centered approaches to waste management and the limitations of market-based solutions like plastic credits in addressing the global plastic pollution crisis. In August, the Intergovernmental Negotiating Committee (INC) will meet in Geneva for what could be the last chance to force a Global Plastic Treaty over the line.

This story has earned Danone E, S, and G scores of 8, 7, and 5, respectively, with a Greenwashing score of 6. However, Danone's environmental performance presents a mixed picture. The company holds a Post-Penalty Environmental Score of 57, surpassing the industry median of 39, and its Waste Management and Environmental Impact scores are relatively strong at 63/100 and 67/100, respectively. However, Danone's Environment Related Offenses score is concerning, standing at 10/100 and ranking 62nd out of 68 Food Product peers. It will be interesting to see how the fallout of this news story impacts Danone’s scores going forward and if it encourages the company to change its behaviour.

Glencore’s Underreported Emissions

A recent United Nations-backed study has revealed that Glencore Plc's Hail Creek coal mine in Queensland, Australia, emits between three and eight times more methane than officially reported, which has raised concerns about the accuracy of conventional methods used to estimate emissions from coal mines.

The study, published in Environmental Science & Technology Letters, used advanced airborne measurements from aircraft equipped with atmospheric sensors and spectrometers during flights conducted in 2022 and 2023. Researchers observed invisible methane plumes emanating from the mine, providing one of the most comprehensive analyses of coal mine methane emissions to date. The authors called for a reassessment of the "bottom-up" reporting methods currently employed at Hail Creek, which rely on generic emission factors rather than site-specific data.

Glencore, the world's largest coal trader, has disputed the study's findings, criticising the limited data sample and methodology. The company argued that the aerial surveys represented less than 1% of the mine's operational period over two years and questioned the credibility of extrapolating annual emissions from such data. Glencore has since stated it is transitioning to improved reporting methods that incorporate geological modeling specific to its operations.

The Australian government has formed an expert panel to evaluate advanced methodologies for measuring fugitive methane emissions, including those used in this study. Researchers emphasise that reducing methane emissions from coal mines offers a fast and cost-effective way to mitigate climate change. 

Glencore's Controversy Score comes in at medium, with this incident marking the company's 10th controversy this year alone. The firm's environmental performance presents a mixed picture. Its Post-Penalty Environmental Score of 62 places it at a strong 49th position among 797 Metals and Mining peers. However, Glencore's Carbon Scope significantly lags behind industry standards. The company's emissions exceed 400 million tCO2e, dominating the industry median of just over 2 million tCO2e. This stark contrast raises questions about Glencore's commitment to environmental stewardship.

As Glencore pledges to implement new and improved reporting methods, we’re left wondering, will this initiative spark a genuine turnaround in the company's environmental practices? Or will Glencore stick to underreporting while maintaining high production levels? 

Bayer’s Billion-Dollar Lawsuit Verdict

A Georgia jury has ordered Bayer, the parent company of Monsanto, to pay $2.1 billion in damages to John Barnes, a man who developed non-Hodgkin lymphoma after using the glyphosate-based Roundup weed killer for 20 years. The verdict includes $65 million in compensatory damages and $2 billion in punitive damages, marking one of the largest awards in a single-plaintiff Roundup case. Barnes alleged that Bayer failed to warn consumers about the cancer risks associated with Roundup, which he used near his home in Dalton, Georgia, from 1999 to 2019.

This ruling is part of an ongoing legal battle over glyphosate, the active ingredient in Roundup. Bayer, which acquired Monsanto in 2018, has faced over 181,000 claims related to Roundup's alleged health risks. While the company settled many cases for $10 billion in 2020, more than 60,000 lawsuits remain active. Bayer has announced plans to appeal the verdict, arguing that it contradicts scientific evidence and regulatory assessments that deem glyphosate safe when used as directed.

The case has reignited debates over glyphosate's safety and Bayer's liability. The company has previously succeeded in reducing large jury awards on appeal and is optimistic about achieving a similar outcome here. However, the verdict caused Bayer's shares to drop by over 8%, reflecting investor concerns about ongoing litigation risks.

For Barnes, who is currently in remission after battling cancer since 2020, the ruling represents a significant milestone. His attorneys emphasised that the decision highlights Monsanto’s failure to take responsibility for the alleged harm caused by its product. The case underscores the broader challenges Bayer faces as it continues to defend Roundup against mounting legal and public scrutiny.

FCC’s DEI Dilemma

Federal Communications Commission (FCC) Chairman Brendan Carr has announced that the agency is prepared to block mergers and acquisitions involving media companies that promote DEI policies. This controversial stance, revealed in a recent interview with Bloomberg News, has sent shockwaves through the communications sector and raised concerns about the future of several high-profile deals.

Carr specifically mentioned pending transactions that could be affected, including Paramount's merger with Skydance Media, Verizon's $20 billion acquisition of Frontier Communications, and T-Mobile's purchase of UScellular's wireless operations. He urged companies seeking FCC approval to "get busy ending any sort of their invidious forms of DEI discrimination," arguing that promoting such policies could prevent the FCC from concluding that approving transactions serves the public interest.

This move aligns with the Trump administration's broader efforts to eliminate DEI initiatives across federal agencies and regulated industries. The administration has directed agencies to compile lists of entities to investigate or penalise over DEI practices, which it increasingly characterises as discriminatory.

The FCC's threat represents a novel approach to pressuring companies to abandon diversity initiatives, as federal regulators have never before attempted to block mergers based on a company's human resources policies. Critics argue that this tactic creates new layers of complexity and uncertainty for dealmakers and may exceed the legal authority granted by President Trump's executive order on DEI.

The announcement has sparked debate within the FCC, reportedly leading to a clash between Carr and outgoing Commissioner Geoffrey Starks. As the situation unfolds, media companies face a difficult choice between scaling back their DEI efforts or risking regulatory obstacles to future mergers and acquisitions.

MUFG Exits Net-Zero Alliance

Mitsubishi UFJ Financial Group (MUFG), Japan's largest bank, has announced its decision to withdraw from the Net-Zero Banking Alliance (NZBA), a United Nations-backed coalition of banks committed to advancing global net-zero goals through their financing activities. This move follows similar exits by other major Japanese financial institutions, including Sumitomo Mitsui Financial Group (SMFG) and Nomura Holdings.

The exodus of Japanese banks from the NZBA comes in the wake of departures by major Wall Street institutions and Canadian banks since December 2024. This trend has been largely attributed to the changing political landscape in the United States, particularly following Donald Trump's return to the White House. The Trump administration's rollback of environmental policies and increased pressure on financial institutions regarding their ESG efforts have contributed to this shift.

Despite leaving the alliance, MUFG and other departing banks have stated that they remain committed to their climate change mitigation efforts and existing sustainability targets. MUFG, for instance, still aims to achieve net-zero emissions in its finance portfolio by 2050 and in its own operations by 2030.

The departures have prompted the NZBA to review its policies, including potentially removing the requirement for members to align their portfolios with the goal of limiting global warming to 1.5°C. This review aims to ensure the alliance can adapt to changing conditions and member needs.

As of March 2025, only Mizuho Financial Group remains among Japan's megabanks in the NZBA, which now has approximately 130 signatories globally. The situation highlights the growing challenges faced by international climate initiatives in balancing global environmental goals with shifting political and economic pressures.

This story has been assigned E, S, and G scores of 8, 0, and 6, respectively, along with a Greenwashing score of 8. A closer look at the company’s greenwashing analysis reveals a high controversy score, driven by a recurring theme of greenwashing across its controversies. Additionally, the company is significantly underperforming in terms of carbon emissions compared to its peers, reporting over 27 million tCO2e, far exceeding the industry median of just over 300,000 tCO2e. Alarmingly, this figure has surged by more than 23.5 million tCO2e between 2019 and 2023. It will be interesting to see whether the company can uphold its commitment to existing sustainability targets despite these figures, especially in light of its decision to withdraw from the NZBA.