Top Stories

May 05, 2016

Responsible Investment

Report: Embrace 2°C climate target to boost value, oil majors told

A major new report from the Carbon Tracker Initiative, an independent financial think tank, argues oil and gas companies could boost market caps by $100 billion by ditching most high risk projects. At today’s prices, the report found, the seven biggest oil majors’ portfolios would be worth around US$140 billion more if they stuck to projects compatible with a 2°C warming limit. “A lot of the socially responsible investors we were speaking to wanted to know what an oil company would look like if it was managed in line with a 2°C business model,” said Paul Spedding, the co-author of the report. “A simple carbon sensitivity analysis shows that oil majors pursuing volume at all costs can deliver lower shareholder value than a more disciplined approach,” said James Leaton, research director at Carbon Tracker. “That is why financial regulators need to make 2°C stress tests standard practice for the energy sector to help avoid companies wasting capital.” (Business Green; Climate Home)

 

Bloomberg launches Financial Services Gender-Equality Index

Bloomberg has announced the launch of the Bloomberg Financial Services Gender-Equality Index (BFGEI), providing investors and organisations with standardised aggregate data across financial services firms’ gender statistics, employee policies, gender-conscious product offerings, and external community support and engagement. “Evidence demonstrates that gender-equality policies and practices can affect a company’s financial performance, productivity and ability to retain top talent,” said Angela Sun, Head of Strategy and Corporate Development at Bloomberg. The 26 firms included in the inaugural index scored at or above 60 points, a threshold designed to reflect disclosure and the achievement or adoption of best-in-class statistics and policies. They include Banco Santander, Barclays, Deutsche Bank, Old Mutual, Prudential and Standard Chartered. (Bloomberg)

Waste

Nespresso expands recycling partnership with UPS to the entire continental US

Single-serve coffee company Nespresso has announced it has expanded its partnership with UPS from 20 to 48 states to significantly extend the reach of its US recycling program.  By adding additional collection points in more locations across the country, it is now easier than ever for consumers to recycle used Nespresso capsules. “By using aluminium packaging – which is recyclable – everyone who enjoys Nespresso has an option to recycle their used capsules. We will continue investing to make it easier for our consumers to recycle, as their participation is essential to make our recycling efforts a success,” said Guillaume Le Cunff, President of Nespresso USA and member of the Nespresso Sustainability Advisory Board. (3BL MEDIA)

Climate Change

Report: UN finds progress on global climate efforts

The growth of greenhouse gas emissions will slow “substantially” by 2030 as a result of a range of new policies, laws and promises by governments, says a new UN report. The study picks through climate plans submitted by 189 countries before and after the 2015 Paris Agreement, and determines there is a global will to tackle climate change. Those 189 plans cover nearly 100 percent of global emissions linked to countries, offering a clearer picture of the challenge ahead. The study found emissions from the burning of oil, gas and coal together with changes in land use are expected to grow 16 percent from 2010-2030, compared with 24 percent from 1990-2010. Still, there is a gulf between policy commitments and the steep emissions cuts atmospheric science dictates. The report suggests systems for measuring, reporting and verifying vital climate data such as emissions should be standardised to make evaluating progress easier. (Climate Home)

Corporate Reputation

BHP Billiton faces £30 billion compensation claim over Brazil dam disaster

Mining group BHP Billiton and its partner Vale are facing a £30 billion claim from Brazilian prosecutors over an iron ore mine dam collapse last year that released a torrent of toxic mud, killing 19 people and leaving 700 homeless. Shares in the London-listed BHP plunged almost 10 percent after the charges were revealed over what is being called Brazil’s worst ever environmental disaster. The damages claim has been based on the clean-up costs of BP’s Deepwater Horizon accident in the US. “Preliminary studies show the human, economic and socio-environmental impacts of the collapse of the dam are, at least, equivalent to those verified in the Gulf of Mexico,” the prosecutors said. “It does not seem credible, neither technically nor morally, that the value of the human, cultural and physical environment in Brazil should be worth less than other countries.” (Guardian)

 

Image source: Cápsulas de café Nespresso by Andrés Nieto Porras / CC BY-SA 2.0

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