The U.S. administration has decided to disband a federal advisory panel on climate change. The panel, a group of academics and local officials, is part of the National Climate Assessment (NCA) and is aimed at helping policy makers translate the analysis provided by the assessment into concrete proposals and guidance for local authorities. A mandate for the Advisory Committee for the Sustained NCA is set to expire on August 28, and will not be renewed. The NCA is supposed to be released every four years, but it has only been put out three times since 1990, when a law calling for such analysis was created. The next NCA is due for release in 2018, but the report, which found evidence that more than half of the rise in temperatures over the past four decades has been caused by human activity, is expected to be a key part of the assessment and is currently under review by the Trump administration. (Independent)
Responsible Investment
Some asset managers ban investments in German carmakers
Asset managers Union Investment, Erste and Acadian have banned investments in German carmakers from some of their funds, after an investigation of alleged industry collusion was announced. It is believed that Volkswagen, Audi, Porsche, BMW and Daimler have been holding secret meetings for decades to collude on technology, components and suppliers. Other fund managers, including Deutsche Asset Management, Germany’s biggest asset manager, and Candriam, a Franco-Belgian firm, said they were reviewing their investments in carmakers. MSCI, Oekom-Research and Sustainalytics which provide research to understand non-financial risks, downgraded their ratings for German carmakers, warning investors were at risk of big losses if the claims were proved true. Deka, Germany’s fourth-largest asset manager, said it had not stopped from investing in carmakers however, saying that “ongoing engagement with companies” was “a much better way”. (Financial Times)*
Corporate Reputation
Johnson & Johnson faces $417m payout in latest talc case
Johnson & Johnson (J&J) has been ordered to pay $417 million to a woman who says she developed ovarian cancer after using products such as baby powder. The Los Angeles Superior Court’s decision was the largest yet in lawsuits alleging J&J failed to adequately warn consumers about the cancer risks of its talc-based products. Although the evidence around any link between talc use and cancer is inconclusive the firm has faced thousands of claims from women who say they developed cancer due to using the firm’s products for feminine hygiene. The firm said it would appeal because “guided by the science, which supports the safety of Johnson’s Baby Powder”. J&J has lost four of five previous cases tried before juries in Missouri, which have led to more than $300m in penalties. (BBC; Reuters)
Employees
Development Bank Singapore pumps S$20 million into employee digital skills training
The Development Bank of Singapore (DBS) has announced it is investing S$20 million over five years into an employee digital skills training programme, following Singapore Prime’s National Day Rally speech where he called employers to hire more skilled talents to become a “Smart Nation”. The initiative will attempt to equip the financial institution’s 10,000 employees with skills in digital banking and emerging technologies, enabling them to adapt to the future of work. The DBS programme comprises artificial intelligence-powered e-learning used to personalise courses, and help employees collaborate and engage in mobile education across the bank. Bank employees are also given the opportunity to go on paid sabbaticals to work on prototypes and start their own businesses as well as join an accelerator programme for intrapreneurs. (Singapore Business)
Supply Chain
EU moves to improve fairness in food supply chain
The European Commission (EC) has launched a 12-week online consultation to improve fairness in the EU’s food supply chain, following indications of inadequate redistribution across all levels of the chain because of imbalances in bargaining power between smaller businesses and their stronger commercial partners. Producers across all agricultural sectors in the EU are invited to point out the flaws and unfair practices they have experienced. The consultation follows the EC’s publication of an Inception Impact Assessment, which set out objectives and policy options for enhancing the functioning of the EU food supply chain —which employs over 44 million people. John Comer, president of the Irish Creamery Milk Suppliers Association, said unfair trading practices had systematically enriched retail and processing corporations —often at the “ruinous expense” of farmers and primary food producers. He called to advocate direct EU supervision to “face up to the fact that the offending corporations [are] very often beyond the control of one member state”. (CIPS)
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