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September 18, 2012

Corporate Reputation

South Africa warns of cost of unrest

Mining unrest in South Africa continues as London-listed platinum miner Lonmin is halting the construction of a new mine shaft, putting 1,200 people out of work. Jacob Zuma, South Africa’s president, has called for a speedy resolution to strikes in the nation’s vital mining sector. Mr Zuma said the value of production in the gold and platinum sectors lost to stoppages over the last nine months was close to R4.5 billion ($548 million), while the indirect impact of strike actions had cost the national fiscus R3.1 billion. (Financial Times*, Financial Times*)

Business leaders turn to Catholic Church

Business leaders including Vodafone’s chief executive Vittorio Colao and Unilever’s Paul Polman will on Tuesday join the Archbishop of Westminster in a drive to restore business’s battered reputation for ethical behaviour. With several ongoing scandals in the financial, pharmaceutical and mining sectors, executives are concerned about restoring public trust. Nearly 200 executives from companies including BAE Systems, Centrica and Tesco will meet at the conference in London to discuss ways to put moral principles at the heart of business behaviour. The church believes it can play a role because it stands outside the market, business and government and is international. The initiative is also supported by the Archbishop of Canterbury and the Chief Rabbi. (Financial Times*)

Environment

Brussels rethinks rules on biofuels

The European Commission is to overhaul rules encouraging the use of biofuels amid concerns that the policies may have contributed to deforestation and a surge in global food prices. The new changes, to be proposed as early as next month, will cap the amount of transport fuels made from food crops that member states can use to achieve binding EU targets to 5% down from 10%. A study released on Monday by Oxfam estimated that the land needed to power EU cars with biofuels for a year could be used to feed 127 million people. Key industry figures, including the CEOs of Unilever and Nestlé have added their voices to NGO concern that diverting food crops to fuel for American and European cars may trigger a food crisis. (Financial Times*, Guardian, Business Green)

Blue Transmission in line for £482m offshore wind grid link

The ‘Blue Transmission’ consortium which includes Macquarie Capital Group and Frontier Power, as well as Barclays and Mitsubishi, has been named as the preferred bidder to own and operate the multi-million pound transmission link that will transport power from the giant London Array offshore wind farm in the Thames Estuary. The 630MW London Array, phase one, wind farm is being developed by Dong Energy, E.ON and Masdar in the Thames Estuary. Its transmission assets will be the largest project of their kind, with an estimated value of £482 million. (Business Green)

Policy & Research

Two thirds of firms concerned energy infrastructure won’t improve

In a survey conducted by CBI and KPMG, it was found that around two-thirds (67%) of companies believe the UK’s energy infrastructure is unlikely to improve over the next five years despite a pressing need for investment in new greener networks. Confidence is also ebbing away over improvements to Britain’s water, transport and building infrastructure. The survey of 568 businesses, found businesses were concerned improvements were not happening quickly enough and a lack of Government action on policy was holding up investment. Almost all businesses polled (97%) viewed the UK’s planning system as the main barrier to delivering new infrastructure. (GreenWise Business)

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