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October 05, 2015

Supply Chain

Nike announces MIT climate collaborations and renewables pledge

Nike has just come out of the starting gate with some new initiatives aimed at taming its corporate and supply-chain footprint. Nike, which joined a host of companies announcing renewables commitments in the lead-up to last month’s UN summit in New York, has pledged to fully power its company-owned and operated facilities with renewable energy within a decade. The company has also announced the next chapter in its collaboration with the Massachusetts Institute of Technology (MIT) to study the environmental and social impacts of key materials such as cotton, polyester, leather and rubber. A new MIT report, commissioned by Nike, aims to quantify such impacts, showing that the carbon footprint associated with a single T-shirt is roughly equal to driving a passenger car for 10 miles. Meanwhile, Nike has partnered with MIT’s Climate CoLab, a crowdsourcing platform, to seek “revolutionary new ideas” on innovative and low-impact materials. Finally, Nike has also released an updated version of its ‘Making’ app, which allows designers to research the energy used and greenhouse gases created during the production of different fabrics and materials. (Greenbiz)

 

Green transport requirements drive shift in trucking industry

Many businesses that ship substantial amounts of freight have built environmental sustainability criteria into their corporate policies – and are now pushing their supply chains to fall in line. One result of these policies has been a radical shift in the trucking industry. Trucks of all shapes and sizes are moving from dependence on oil to a broader fuel portfolio designed to lower emissions. Low-priced and widely available, natural gas has become a front runner in the evolution of greener trucks. UPS, for example, reports that its compressed natural gas trucks produce 95 percent lower particulate emissions and 75 percent lower carbon monoxide emissions than diesel trucks. Major freight shippers such as Walmart, Lowe’s, Procter & Gamble and Owens Corning have asked trucking providers to incorporate natural gas vehicles into their fleets. Government interest in meeting emissions requirements also may help defray the costs of this shift. In the United States, states are making grant money and tax credits available to offset the price premium of the new trucks, as well as building out fuelling infrastructure along major highways. (Greenbiz)

Tax

OECD aims to win over cynics of tax reforms

The Organization for Economic Co-Operation and Development (OECD) is aiming to win over cynics when it announces its recommendations for a co-ordinated international approach to reform the international tax system later today. The measures will range from debt relief and harmonising rules on subsidiary companies, to linking sales and tax in each country more closely by changing reporting rules.  However, its recommendations are not binding, so member countries can cherry-pick which aspects they implement, and at what speed. Stephen Herring, head of taxation at the Institute of Directors said UK companies were “very concerned the government will ‘gold-plate’ these recommendations, while other countries will choose to protect their industries. They won’t play by the same rules.” Despite consulting for the last two years with governments and business, most experts agree that even if countries broadly agree, putting the measures in place will be challenging. Rebecca Reading, international tax partner at Baker Tilly, pointed to uneven implementation: “Some governments, including the UK, have already broken ranks and set up their own arrangements for attacking avoidance by multi-nationals.” (City AM)

Waste

England launches long-awaited plastic bag levy

England today falls into line with the rest of the UK with the long-awaited introduction of a plastic bag levy, designed to decrease the 7.6 billion bags handed out each year by up to 80 percent. The move follows several years during which bag use in England has increased, despite a voluntary agreement with retailers to curb the number of plastic bags being handed out. It also follows the introduction of a bag levy in Wales, Scotland, and Northern Ireland, which has widely been regarded as a success, reducing the number of bags being distributed by around 80 percent. The levy is expected to have minimal impact on overall waste levels, given plastic bag makes up only a fraction of domestic waste. But the government estimates the levy will help cut litter clean-up costs by £60 million a year, while the levy, which retailers are required to distribute to local charities, is expected to raise nearly £750 million for good causes over the next decade. (Business Green)

Employees

Report: Sports Direct headquarters ‘called ambulances dozens of times’

Ambulances were called to the headquarters of one of Europe’s largest sports retailers 76 times in two years, a BBC investigation has found. Many of the calls, for workers at Sports Direct’s complex at Shirebrook, England, were for “life-threatening” illnesses. Former workers said some staff were “too scared” to take sick leave because they feared losing their jobs. The firm has previously been criticised as “Dickensian” in its employment practices. Nearly half of the cases were classed as “life-threatening”, including chest pains, breathing problems, convulsions and strokes. The figures, which came from a Freedom of Information request, also revealed the service received three calls about women having pregnancy difficulties, including one who gave birth in toilets at the site. Sports Direct has also reported accidents in its warehouse have doubled in the past financial year. In a statement, Sports Direct said it aimed to provide safe working conditions for all. (BBC)

Image Source: Holloway N7 by Ewan Munro / CC BY-SA 2.0

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