The President of the World Bank, Jim Yong Kim, has made an urgent plea for action to address the “devastating” risks of climate change. The development body has just released a study into what would happen if the world warmed by 4°C from pre-industrial levels. In Dr Kim’s foreword to the study, he speaks of his “hope that this report shocks us into action” and outlines the stark assessment of the potential impact of such a rise in global temperatures. Heat waves such as the one in Russia in 2010 which led to thousands of deaths and an estimated $15bn of economic losses “are likely to become the new normal summer in a 4°C world” the study predicts. It also concludes that there is “no certainty that adaptation to a 4°C world is possible”. The World Bank study is the third in 10 days from a prominent international body to warn of the potential dangers of climate change unless faster moves are made to rein in greenhouse gas emissions. Reports by the CIA and the International Energy Agency released in early November both highlighted the critical position the world faces. (Financial Times*, Huffington Post)
Electronics firms urged to clean up their supply chains
Consumer electronics giants such as Apple and Nokia must do more to curb carbon impacts in their manufacturing and supply chains, according to a Greenpeace report released today. The Guide to Greener Electronics ranked 16 electronics companies based on their commitment and progress in three environmental criteria: energy and climate, greener products and sustainable operations. Indian technology firm Wipro topped the ranking, due to its efforts to embrace renewable energy and advocacy for greener energy policies in India. However, many electronics companies are failing to see through important changes to their supply chains. According to the study, while most companies have made progress at removing toxic chemicals from the products they produce, their manufacturing and supply chains are still too heavily dependent on energy-intensive sources that are contributing to climate change. Greenpeace IT analyst, Casey Harrell, said that consumers “want greener electronics, which means high functioning gadgets that are built and powered by renewable energy”. (Edie)
M&S reaches a billion sustainable products
Over a third of Marks & Spencer products sold, amounting to over a billion items a year, now boast some form of sustainability credential. Interim results for the retailer’s pioneering ‘Plan A’ sustainability strategy show 35 percent of its products have an eco or ethical feature that goes beyond the market norm. Adam Elman, head of ‘Plan A’ delivery at M&S, said the company was confident it would reach its targets of embedding sustainability features into half of its products by 2015 and its entire range by the end of the decade, but he also acknowledged there was still “work to do”. Plan A contributed savings of £105m for M&S last year and while Elman declined to discuss figures, he said the company is still looking for new areas of opportunity for its Plan A push, which could include investment in renewable energy. (Business Green)
Employees
Ikea regrets using prison labour
Ikea used forced labour from political prisoners in the former East Germany for three decades, in the latest damaging development to hit the furniture retailer. The Swedish company said it deeply regretted the use of political and other prisoners to produce furniture from 1960 to 1990, which was detailed in an investigation by the auditors, Ernst & Young. The investigation was commissioned by Ikea after media reports in Sweden and Germany. The E&Y report suggests that from about 1978-1981 some Ikea managers were aware of the use of prisoners but did nothing to stop it. In an apologetic statement to the press, Ikea said it would make a donation to a scientific research project on forced labour in East Germany after consultation with UOKG, an association of victims of communist despotism. The Swedish retailer has substantially overhauled how it sources and produces furniture after damaging claims over the use of child labour in the 1990s. Since 2000, it has introduced a supplier code of conduct, known as ‘IWAY’, and conducts about 1,000 annual audits. (Guardian, Financial Times*)
Dissent over executive pay declines
The ‘shareholder spring’ revolt was nothing more than a mirage, according to latest research, which shows dissent over executive pay declined by more than two-thirds in 2012 compared to the year before. “The actual story of the ‘shareholder spring’ is not one of a mass demonstration of shareholder discontent [but] the public demonstration of shareholder disapproval towards a limited number of companies relating to specific circumstances and issues,” said David Ellis, head of reward at KPMG in the UK and author of the report, What Shareholder Spring? While criticism of executive pay directed at companies such as Aviva and Barclays put the issue in the limelight this year, only 10 FTSE 100 companies experienced serious dissent on remuneration report votes, down from 34 companies in 2011, according to KPMG. In addition, the overall average level of shareholder support remained above 90 percent in 2012. However the report did warn that there could be more shareholder discontent to come as companies put off voting on new remuneration plans, in anticipation of future opposition. (Financial Times*)
COMMENTS