Corporate sponsors of the 2012 London Olympics have come under intense fire this month from campaign groups over claims of “greenwashing” and tax avoidance. BP, Dow Chemical and the mining group Rio Tinto were the target of protests and online campaigns for allegedly attempting to use the Games to greenwash their patchy environmental and human rights records. Meanwhile, the role of long-time sponsors McDonald’s and Coca-Cola in the modern games has been called into question amid mounting concern over the global obesity crisis. The president of the International Olympic Committee (IOC), Jacques Rogge, admitted in an interview that there had been a “question mark” over the sponsorship of the Olympics by the companies, but that their “grassroots-level” support for the games had won over the committee.
Campaigners also targeted generous tax exemptions which were granted to sponsors by the UK government. So far, campaign groups 38 Degrees and Ethical Consumer have collected more than 225,000 signatures on an online petition, leading nine major sponsors including Coca-Cola, McDonald’s, Visa and P&G to turn down the exemptions, worth tens of millions of pounds. UK authorities said that taxpayers were not losing out because London would not have won its Olympic bid without the tax breaks, which were demanded by the IOC. (BusinessGreen; Financial Times*; The Independent)
US food aid programme criticised as ‘corporate welfare’
Two-thirds of food for the billion-dollar US food aid programme last year was bought from just three US-based multinationals – ADM, Cargill and Bunge – according to an exposé by the Guardian. Critics of the US system of food aid have complained for years that the programme is as much about corporate welfare for American companies as helping the hungry overseas. Legislation dictates that the vast majority of US food aid must be purchased, processed and shipped by American companies, and it is estimated that only 40 cents of every taxpayer dollar is spent on food. Eric Munoz, agriculture policy analyst for Oxfam America, said: “This new information makes it abundantly clear that it is massive multinational firms – not rural America and not farmers – that are the direct beneficiaries of the rigged rules governing the US food aid programme.” The European Union changed its food-aid policy in 1996, shifting to cash donations, while Canada fully “untied” its food aid budget in 2010 – a move that has been commended internationally, including by the OECD. (The Guardian)
Asia-Pacific
Abbott enters Burma responsibly
As the EU temporarily lifts its trade sanctions against Burma, and the US signals that it is ready to do the same, foreign companies are lining up to do business there in a situation similar to Cambodia in the late 1990s. However, while Cambodia was marked by unrest, poor working conditions and international scrutiny as apparel makers entered in search of cheap labour, some companies are looking to enter Burma in a more responsible way. One is pharma company Abbott, which this month announced a $1 million partnership in the country with the U.S. Secretary of State’s International Fund for Women and Girls through its charitable foundation. “During our recent trip to Burma we met dozens of women who are leading local organisations, making significant contributions to address critical community needs,” said Katherine Pickus, vice president, the Abbott Fund. “The Abbott Fund aims to further strengthen the capabilities of these organisations to advance health, education and economic opportunities for women – at a transformational time that holds great promise for the country’s future.” (The Guardian, CSR Wire)
Average Chinese person’s carbon footprint now equals European’s
The average Chinese person’s carbon footprint is now almost on a par with the average European’s, new figures reveal. China became the largest national emitter of CO2 in 2006, though its emissions per person have always been lower than those in developed countries. The new report, by the PBL Netherlands Environmental Assessment Agency and the European commission’s Joint Research Centre, finds that Chinese per capita emissions from energy rose to 7.2 tonnes per person in 2011 – just shy of the EU average of 7.5. Rising coal use in China, despite high-profile investments in renewables and smart cities, has closed the gap with the EU. However, one important factor in China’s emissions is the production of goods for export, account for almost a fifth of the total. A recent UK select committee report argued that it was important to account for the import and export of goods when considering national responsibility for climate change. (The Guardian)
Australia introduces controversial carbon tax
Australia this month introduced its highly controversial carbon tax, after years of bitter political wrangling. For Prime Minister Julia Gillard, the carbon tax is the centrepiece of the country’s “clean energy future”. But the tax, which will affect about 300 of the worst-polluting firms, has seen widespread protests and has pushed the Labour government to a 40-year low in opinion polls. The opposition, led by Tony Abbott, calls it a “toxic tax” that will cost jobs and raise the cost of living. Government plans for compensation to low-income earners have failed to sway Abbott, a climate sceptic, who has promised to repeal the tax if elected next year. Businesses have criticised the resulting uncertainty, with many reluctant to make long-term investments in carbon reduction. (BBC; The Guardian)
Africa
Africans urge China to help create sustainable development
African leaders and independent groups at this month’s China-Africa Forum in Beijing are pressing China to prioritise sustainable development in its trade with African countries. Chinese investments in environmentally sensitive sectors have spurred anti-Chinese sentiment in many African countries. Chinese mining projects have also caused serious environmental problems, and demand in Asia for rhino horn and ivory has spurred the illegal wildlife trade. As Chinese investments grow, environmentalists say sustainable development is essential to maintaining and improving ties with Africa. Jiaman Jin, executive director of the Global Environmental Institute, says Chinese government leaders are taking notice. “At first, [opposition to] these kinds of projects are about environmental dangers, but then that affects the diplomacy, politics and even the relationship between the two countries,” she said. (Voice of America)
Latin America
Five protesters die in Peru clash over Newmont mine
Five protesters died this month following two days of clashes with Peruvian police, as critics said President Ollanta Humala’s crackdown on a rally against a $5 billion gold mine proposed by Newmont had gone too far. Protesters accuse Humala, who has been in office for a year, of reneging on a campaign promise to put access to clean water ahead of mining projects. Humala has not spoken about the events, but appears to have lost patience with protesters, having suspended civil liberties to curb demonstrations at least three times. Newmont’s local office said on Tuesday that the violence was unfortunate, but that it was “reaffirming its commitment” to the project. (Reuters; The Guardian)
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