Pope Francis will call for a “drastic reduction” in carbon emissions and lash out against “economic powers” that are opposing efforts to combat climate change, according to an early draft of his forthcoming encyclical on the environment. The Vatican was due to publish the encyclical – considered the highest form of Catholic papal teaching – on Thursday, but Italian magazine L’Espresso released a 192-page version on Monday. The Vatican said the posted text wasn’t the final document, but did not say whether there were material differences between the draft and the final document. In the encyclical, which is timed to bolster the push for a global deal to cut carbon emissions in Paris in December, the pontiff wades into the debate over climate change, writing of a “very consistent scientific consensus that we are in the presence of an alarming warming of the climactic system”, which has been caused “mainly by human activity”. (Wall Street Journal*; FT*)
Governance
Study: Perceptions of corporate governance don’t match reality
G4S – the UK outsourcing and security group involved in scandals over Olympic Games staffing and offender tagging – has been ranked last in a survey of 400 business people asked to rate UK companies on their corporate governance. In the survey by the Institute of Directors (IoD) and Cass Business School, G4S was joined at the bottom of the table by Sports Direct, Royal Bank of Scotland (RBS) and Tesco. However, the survey found that perceptions of companies were often misleading. When the IoD and Cass Business School used their own set of governance criteria – such as board effectiveness, auditing and remuneration – G4S and RBS moved to around the middle of the table. Companies ranked highly in the survey, including Intertek, Bunzl and Weir, also performed differently using the alternative assessment. Cass and the IoD plan to use these assessments to develop a new corporate governance index for Britain’s companies that addresses the gap between perception and reality, to be launched by early next year. (FT*)
Policy & Research
New report highlights green potential of circular economy
Making things last instead of throwing them away could make a drastic difference in the fight against climate change, according to Zero Waste Scotland’s new report, Carbon Impacts of the Circular Economy. The report sets out how actions such as repairing, reusing and remanufacturing could slash Scottish greenhouse gas emissions by up to 11 million tonnes of carbon dioxide by 2050 – the equivalent of almost 275 million return car journeys from Edinburgh to Glasgow. The report is one of the first to quantify the environmental benefits of moving to a more circular economy. Speaking from the EU’s Environmental Council, Scotland’s Environment and Climate Change Minister Aileen McLeod said: “The report… shows the importance of thinking about the things we can consume as a society, regardless of where they come from. Moving to a circular economy will reduce emissions here in Scotland and around the world too – whilst still growing our national economy.” (Click Green)
Green awareness in US states linked to success in emissions cuts
Environmentalism seems to work, suggests a new study looking at the impact of the environmental movement on actual CO2 emissions in every US state from 1990 onwards. The study, conducted by Michigan State University, found that states with higher support for the environmental movement have lower carbon emissions, and the strength of these movements over time in each state affects their emissions. As a proxy for the strength of the environmental movement in each state, Thomas Dietz and colleagues relied on the voting records of Congress members. “We’re not saying it’s the voting of members of Congress per se that is producing the effect,” said Dietz. “Rather, the voting record is a pretty good indicator of how green the state is.” Critics of the study, however, are not convinced that environmental orientations at the US Congress accurately reflect public opinion in each state. (New Scientist)
Corporate Reputation
Nestlé to destroy noodles worth $50 million
Nestlé says it will destroy more than $50 million worth of its hugely popular Maggi noodles, following a ban imposed by India’s food safety regulator. The regulator says tests have found the instant noodles “unsafe and hazardous” and has accused Nestlé of failing to comply with food safety laws. The company insists that the noodles are safe and is challenging the ban in the high court in Mumbai. The value of withdrawn noodles includes stocks taken off the shelves and stocks stored in factories and with distributors. Nestlé’s global chief executive Paul Bulcke has asked to see the results of the laboratory tests and promised to return Maggi to store shelves soon. Nestlé has 80% of India’s instant noodles market. (BBC)
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