Top Stories

August 21, 2014

Supply Chain

Nestlé moves toward humane treatment of animals at its suppliers

Nestlé, one of the world’s largest food companies, is adopting animal welfare standards that will affect 7,300 of its suppliers around the globe. The broad-reaching move is likely to have an impact on other companies that either share the same suppliers or compete with Nestlé. Under its new standards, Nestlé will not buy products derived from pigs raised in gestation stalls, chickens in barren battery cages, cattle that have been dehorned or had their tails docked without anaesthesia and animals whose health has been damaged by drugs that promote growth. “Consumers today know far more about how components in their food are made — and they are far more willing to share that knowledge to stir up a fuss on social media”, said Kevin Petrie, chief procurement officer for Nestlé in North America. The move follows recent pressure from animal welfare groups, as many food companies and restaurant chains have given their suppliers deadlines to eliminate practices that are harmful to animal well-being. (New York Times)

Corporate Reputation

Microsoft drops membership of anti-renewables lobbying group

Microsoft has announced that it is ending its relationship with the American Legislative Exchange Council (ALEC), a conservative public-policy lobbying group. The decision was made in response to ALEC’s anti-renewables lobbying efforts, including measures to repeal renewable energy standards and block the disclosure of chemicals in fracking. Social investment advisors, The Sustainability Group and Walden Asset Management, recently questioned Microsoft’s membership in light of its support of renewable energy, which directly conflicts with ALEC’s attacks on the industry. Following the move, The Sustainability Group said: “[Microsoft] is one of the largest corporate purchasers of renewable energy. Thus, we believe that its affiliation with ALEC, which is actively fighting policies that promote renewable energy, was incongruous”. Greenpeace also welcomed the decision. “Google, Facebook, eBay, Yahoo, Yelp and other technology companies that are currently still ALEC members would do well to learn from Microsoft’s leadership”, said senior IT policy analyst Gary Cook. (Sustainable Brands)

 

‘Clean coal’ advert banned by UK watchdog

The world’s largest private-sector coal company has been banned from using an advert that implied its technology was not polluting. Peabody Energy placed an advert in UK national media that presented “clean coal” as a solution to energy poverty around the world, and described energy poverty as “the world’s number one human and environmental crisis”. Environmental charity WWF disputed its claims, arguing it was generally accepted the solution to energy poverty depended on renewables, not fossil fuels. The charity also complained that the term “clean coal” was misleading. The Advertising Standards Authority  agreed, stating that consumers were likely to interpret the word “clean” as an absolute claim, meaning the process did not produce carbon dioxide and other pollutants. Tony Long, director of European policy at WWF, said he was “delighted” with the outcome. “Companies trading and selling polluting energies have a responsibility to be open and honest about their activities and products”, he said. (RTCC)

Strategy

Toms set to expand global reach of philanthropic model with Bain Capital

Responsible shoe manufacturer Toms has announced the sale of half of the company to Bain Capital, in a deal that values Toms at about $625 million. Blake Mycoskie, who built the company by selling simple canvas espadrilles combined with a unique “one-for -one” donation plan –donating a pair of shoes to a needy child for every pair sold – believes he can continue balancing the charitable and the commercial parts of the company. Bain Capital will help take over the day-to-day management of the company while helping it expand globally and into new business lines. “My dream is for Toms to be the most influential and inspirational company in the world”, said Mycoskie. He is taking half of the proceeds from the sale to start a new fund to support socially minded entrepreneurship, and Bain has committed to matching his investment while also continuing the one-for-one policy. Mycoskie added: “We got a great partner who believes in our model and not changing that, but on top of that wants to make a difference in people’s lives through philanthropy”. (New York Times)

Employees

UK water and waste management sectors create Trailblazer Apprenticeships

Young people aiming to build careers in the water and waste management sectors in the UK will soon be able to participate in two new apprenticeship schemes, thanks to some of the top employers in the industries. Thirteen leading firms, including South West Water, Thames Water, LondonWaste, Welsh Water, and United Utilities, have collaborated through the ‘Energy & Efficiency Industrial Partnership’ to develop the programmes as part of the government’s new Trailblazer scheme. The partnership aims to create 70,000 new learning opportunities in the form of apprenticeships and traineeships. Skills Minister, Nick Boles, praised the Energy and Utilities sectors, stating that they “are leading by example in the development and delivery of high quality apprenticeships that give people the chance of successful careers and help businesses get the skills they need to grow”.  Jan Newberry, training manager at South West Water and chair of the water and waste management Trailblazer Apprenticeship Group, described the government initiative as “ground breaking”. (Edie)

 

Image source: “Bayswater Power Station with coal” by Webaware  (public domain)

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