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Juxtaposed - A Paradox of ESG in the Space Sector

Sep 19, 2024

5 min read

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The space sector holds immense potential to underpin monitoring, reporting and verification of the sustainable development goals (SDGs) and enhance environmental, social, and governance (ESG) performance across various industrial sectors.

Yet, this potential stands in stark contrast to the space sector's own present-day level of ESG disclosure. This article attempts to explore that paradox and advocates for greater responsible business practice in the UK space sector.

 

The Transformative Power of Space-Derived Data

 

Space-derived data analytics are revolutionising our ability to monitor and achieve independent, transparent and evidential insight into industrial behaviours.

These space capabilities and the increasingly access to derived geoinformation is driving behaviour change: both enhancing physical asset management regimes; and assuring quantified estimations of positive change, harm reduction and the respective estimations of impact. 


This new level of transparency is a critical component of ESG disclosure.

The UK’s fintech ecosystem is particularly well-positioned to leverage space data for ESG advancements. The Centre for Greening Finance and Investment (CGFI) highlights in their "Green Fintech 2.0" report how fintech companies in the UK are utilising space data to drive green finance and sustainable investments.

 

Inconsistency in ESG Reporting within the Space Sector

 

Given the space sector's capability to report on ESG challenges, it is odd that space companies are themselves yet to adopt rigorous ESG reporting.  It’s impossible right now to understand which organisations may be the most responsible businesses in space and which create, or have the potential to create, the greatest harms for people and planet.

 

Whilst in the past the sector has passively championed the “greater good” it has in international communications and climate services, however this inconsistency raises questions about the industry's commitment to sustainability and transparency.

Financial institutions and large corporations in the UK and Europe are leading ESG reporting efforts, under scrutiny to ensure sustainable practices. In contrast, the space sector, despite its heavy reliance on rare earth metals, global transportation of parts, and increasing launch rates, remains under less scrutiny.  For how long will that last?

 

The Environmental Cost of Space Activities

 

Space activities involve significant environmental costs, from the extraction of rare earth metals to the manufacturing and launching of spacecraft. Hydrogen fuel cells used in launches are often derived from fossil fuels, and the launch process itself contributes to greenhouse gas emissions.


The proliferation of smaller satellites in low Earth orbit (LEO) leads to increased space debris, with many satellites failing shortly after launch.  Gravitilab highlight the challenges of managing the environmental impacts of the growing space economy, emphasising the need for sustainable practices in prelaunch testing for improved full-life system reliability.

 

Understanding Re-entry and Atmospheric Impact

 

Re-entry burn-up processes differ significantly from terrestrial waste disposal. The chemical reactions and environmental impact of materials burning up in the upper atmosphere are not yet fully understood. This knowledge gap adds to the opacity of the space sector's environmental footprint.

 

The Energy Impact of Data Processing

 

Interest is growing around the re-use of space-derived datasets, which are large and complex, requiring significant energy for data centre processing. The associated energy impact is a critical factor in evaluating the overall environmental footprint of the space sector. A study published in Nature Sustainability discusses the environmental impact of big data processing, emphasising the need for efficient data management practices.

 

Emerging Initiatives and Standards for Space Sustainability

 

To address these challenges, several key initiatives and standards are being established to guide the space industry towards more sustainable practices. The Astra Carta and the Earth and Space Sustainability Initiative (ESSI) aim to provide frameworks specific to the space industry. These frameworks are essential as space insurance becomes more challenging, with increasing risks of uncontrolled collisions.


It is foreseeable that the sector could easily become viewed as "dirty" and "risky" rather than "cool" and "fun" as it would appear today in public discourse.

 

Callala’s Commitment to Responsible Business

 

Callala, with its deep roots in the space sector, is dedicated to promoting responsible business practices. The company aims to position the UK space community as a leader in global space sustainability and responsible business. Callala's belief is that the space sector can and should do better. As an ambassador, Callala advocates for integrating ESG reporting, target setting, and improvement into business strategies.

 

Defining Good and Poor ESG Practices

 

What does good ESG practice look like in the space sector? It involves comprehensive reporting, transparency, and a commitment to minimising negative environmental and social impacts.

 

We’re talking about an evaluation of business behaviours, life cycle analysis and supply chain assessments with demonstrable commitments to removing opacity and reducing environmental and social harms. To remain relevant in underpinning ESG commitments in non-space sectors, space companies must evaluate their position today, set targets and strive for improvement.

 

Callala’s ESG Journey and Collaborations

 

Callala’s journey toward understanding the carbon cost of satellite data began in 2021. By comparing satellite data vendors on traditional product specifications: spatial resolution, revisit rates, wavelengths and swath width - Callala sought to drive responsible business practices in the space sector with an estimation of lifecycle carbon cost per pixel as a new buyer metric.


Partnering with Sixty7.Green and the University of Manchester, Callala is aligned with ESSI and the Astra Carta to support space companies in their ESG journey. This collaboration focuses on responsible business, reporting and disclosure and identification of key space specific information gaps that require additional research to enable fuller corporate disclosure.

 

Sustainable Futures Project

 

Supporting the University of Manchester, Callala and Sixty7.Green in 2023 embarked on a Sustainable Futures project: "From Launch to Business Insight: Developing a framework to assess the environmental cost of satellite data with consideration of technical, economic, and governance aspects".


This project set the tone of a long-term vision for an environmentally sustainable space industry.

 

Steps Towards an Environmentally Sustainable Space Future

 

Through 2024 to 2025, Callala and Sixty7.Green will support a follow-on project: "Visions of, and steps towards, an Environmentally Sustainable Space Future." This initiative aims to engage stakeholders in appraising the space industry’s future and developing strategies to mitigate negative impacts while enhancing benefits. Working in parallel with ESSI standards development, Callala’s work aims to forge a stronger, more resilient, and more profitable UK space sector.

 

Driving Sector-Wide Change

 

Callala is committed to achieving sector-wide change through a combination of business strategy and leadership support, life cycle analysis (LCA), and stronger governance and stakeholder inclusivity.


By identifying roadmaps for integrating ESG reporting, target setting, and improvement, and applying LCA approaches to underpin environmental, economic, and social considerations, Callala aims to support leaders in implementing objective reporting, sustainable transition plans and useful governance mechanisms to ensure responsible business practices filter down through all levels and decision-making lenses of a business hierarchy.

 

Working with Ambitious Leaders

 

Callala seeks to collaborate with ambitious business leaders who are committed to driving real change. Whether motivated by a desire to leave a positive legacy or the belief that responsible business is more profitable, Callala aims to support leaders in implementing responsible and sustainable practices.

Sep 19, 2024

5 min read

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