Industry News Roundup March 2012

March 28, 2012

Natural Resources

Total gas leak in North Sea

Oil giant Total has confirmed that a major gas leak on one of its North Sea platforms could take several months to stop and admitted there was a risk of explosion. All 238 staff were evacuated from the Elgin platform after the gas leak was discovered on 25th March. Shell has also removed workers from two offshore installations close to the Elgin platform.

The Guardian http://www.guardian.co.uk/business/2012/mar/27/shell-evacuates-north-sea-workers

Charges filed against Chevron executives in Brazil

Brazilian federal prosecutors filed criminal charges against 17 Chevron and Transocean company executives for an oil leak in the Atlantic, a move deemed outrageous by those targeted but applauded by environmentalists. Prosecutors accused the executives of environmental crimes, of misleading Brazil’s oil regulator about safety plans and of not providing accurate information in the wake of the spill.

Houston Chronicle

http://www.chron.com/business/article/Charges-filed-against-Chevron-execs-in-Brazil-3422793.php

Transportation

EU carbon tax: India joins China in boycott of European emissions scheme

India formally joined China in asking its airlines to boycott the European Union’s carbon scheme. India’s opposition to the Emission Trading Scheme (ETS) could damage the chances of the Free Trade Agreement (FTA) it is negotiating with the EU. This agreement eliminates tariffs, import quotas and preferences on most goods and services traded between member countries of the Free Trade Area.  The EU’s Climate Commissioner has repeatedly said the EU will stand by the ETS unless the United Nations’ International Civil Aviation Organization can come up with a global plan to curb rising carbon emissions from aircraft.

Huffington Post

http://www.huffingtonpost.com/2012/03/22/eu-carbon-tax-india-boycott_n_1372300.html

Finance

Goldman employee criticises firm for ripping off clients

A departing Goldman Sachs Group Inc. employee mounted an unprecedented public attack on its “toxic and destructive” culture in a New York Times opinion piece, becoming the first serving insider to openly criticise the firm. The attack adds to criticism from politicians and protesters who blame the company for triggering the financial crisis and profiting at clients’ expense. Goldman Sachs has faced congressional hearings probing its role in the financial crisis and paid $550 million in 2010 to settle a lawsuit accusing it of misleading investors in a collateralised debt obligation.

The Washington Post http://washpost.bloomberg.com/Story?docId=1376-M0VGFD0YHQ0X01-2R66VG1U67FU9U11MHJS93BKS6

Cosmetics

Top cosmetic companies reportedly resuming animal testing

After nearly two decades of touting their “no animal testing” policies, cosmetic giants Avon, Estée Lauder, and Mary Kay have reportedly resumed paying for animal testing, without informing consumers about their change in practices. PETA has confirmed with each company that chemicals are being dripped into rabbits’ eyes and that substances are being rubbed onto animals’ skin because of requirements of the Chinese government which requires tests on animals before many cosmetics products can be marketed in China.

Huffington Post

http://www.huffingtonpost.com/2012/02/20/avon-estee-lauder-animal-testing_n_1289244.html

Pharmaceuticals

GSK and J&J launch €150 million fund with Index

GlaxoSmithKline and Johnson & Johnson are joining forces with a venture capital firm, Index Ventures, in a pioneering €150 million investment fund designed to accelerate successful drug discovery. By using its own global network of professional drug developers, Index seeks to advance with or abandon potential drugs as quickly as possible. This strategy is in contrast to the more traditional approach of investors, which supports the vested interests of medical researchers and managers keen to maintain their jobs and companies by prolonging clinical studies or identifying other pilot medicines to diversify risk.

Financial Times* http://www.ft.com/cms/s/0/f3416248-72ac-11e1-9be9-00144feab49a.html#axzz1pYLyb6Vf

India orders Bayer to license a patented drug

In a decision likely to upset Western pharmaceuticals, India effectively ended Bayer’s monopoly on a patented cancer drug, licensing a much cheaper generic under a unique law aimed at keeping costs affordable. Western pharmaceutical companies have been pushing for stronger patent protections and rules to clamp down on a $26 billion Indian generics industry they say is overstepping intellectual property rights. Aid groups counter that Indian generics are a lifesaving resource for patients in poor countries who cannot afford Western prices to treat diseases like cancer, malaria and HIV.

Washington Post

http://www.washingtonpost.com/world/asia_pacific/india-gives-generic-drug-maker-license-to-make-cancer-treatment-patented-by-bayer/2012/03/12/gIQAesN46R_story.html

Textiles/Apparel

Clothing giants slammed for use of ‘hazardous’ chemicals

Major clothing brands have been named and shamed in a new report which reveals that hazardous chemical residues in textiles are being released into public waterways. Adidas, Calvin Klein, Converse, H&M and Ralph Lauren are among those listed in the Greenpeace report as using harmful chemicals in their materials, which when washed by consumers enter rivers, lakes and seas.

Edie http://www.edie.net/news/news_story.asp?id=22127&title=Clothing+giants+slammed+for+use+of+%27hazardous%27+chemicals+

Food & Beverage

Nestlé joins the Fair Labor Association 

Nestlé has become the first company in the food industry to join the Fair Labor Association (FLA) following the approval of its application by the association’s board. The FLA is a non-profit multi-stakeholder initiative that works with major companies to improve working conditions in their supply chains.

Nestlé

http://www.nestle.com/Media/NewsAndFeatures/Pages/Starting-work-FLA.aspx

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