Oil major Royal Dutch Shell has been forced to abandon its plans to drill wells in the Arctic this year, after a vital piece of safety equipment was damaged during testing, highlighting the difficulties of drilling in the icy Arctic sea. The dome that has been damaged could be used to contain oil in the event of a spill and will take time to repair. Shell still awaits a full drilling permit for its exploration programme in the area and the paperwork is dependent on successful testing of its Arctic containment system, which includes the now damaged dome. Environmental campaigners including Greenpeace have repeatedly warned about the high risks involved in Arctic drilling in a region already badly impacted by climate change. (Reuters, Financial Times*, Business Green)
Corporate Reputation
Two South Africa mines reopen, yet investors pull out
Aquarius Platinum's Kroondal platinum mine and Xstrata's chrome mine near Rustenburg have reopened after suspending operations last week as a precaution against the labour unrest sweeping through the region's platinum belt, although the situation on the ground remained tense. A total of 45 people have been killed. This is whilst leading international fund managers have reduced their holdings in South Africa’s natural resources sector, with some investors making a strategic decision to unwind their exposure in the country indefinitely. (Reuters, Financial Times*)
Diversity
UK musters support to block EU women quota
Britain has mustered sufficient support from European Union member states to block a proposal by Brussels to impose a 40% female quota on listed company boards across the 27 country bloc, according to a letter sent to the European Commission’s president from nine countries. The joint effort may force Brussels to drop the legislation, as the nine countries opposed to the proposal now have sufficient votes to block the plan under the EU’s complex majority voting process. “We agree with the commission’s stance that there are still too few women on the boards of publicly listed companies,” said the letter which was signed by nine labour and business ministers. “[But] we reiterate that any targeted measures in this area should be devised and implemented at national level”. Business Europe, the EU’s largest employers group, said that one-size-fits-all quotas failed to address the real problems that women faced when trying to advance their careers. (Financial Times*)
Supply Chain
Honda, Ford spearhead new conflict minerals reporting tool
The United States Securities and Exchange Commission passed a ruling in August requiring public companies to examine their supply chains and disclose if their products use tin, tungsten, tantalum or gold from the Democratic Republic of Congo, minerals that are said to fuel the conflict in the Central African nation. More than two dozen auto companies, including Honda, Ford and the Chrysler Group, worked since last year to develop an online tool, which enables businesses to publish their conflict mineral status and helps them create reports that adhere to governmental requirements. (Green Biz)
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