High-street clothing brand Zara is considering taking fresh steps to detox its supply chain, after it was highlighted as one of the worst users of hazardous chemicals among 20 retailers assessed by Greenpeace. The research, published on Tuesday, tested 141 clothing items from major brands for nonylphenol ethoxylates (NPEs) and carcinogenic amines. NPes can break down into hormone-disrupting chemicals when released into the environment and water supplies – in some countries their use has been banned for almost 20 years. Greenpeace said all of the brands had several items containing NPEs, while Zara was the only retailer selling items contaminated with both NPEs and toxic amines. (Business Green)
Corporate Reputation
Chevron seeks probe over Ecuador case
Chevron, the US oil group, is calling for an investigation in to the comptroller of New York state, alleging that he acted improperly in urging the company to settle a $19bn claim for environmental damage in Ecuador. The company alleges that comptroller, Thomas DiNapoli, backed shareholders’ resolutions and made public statements to put pressure on Chevron, as an “apparent quid pro quo exchange” for campaign contributions. The comptroller denied the allegations, describing them as “a baseless attempt by big oil to intimidate me”. The company’s complaint comes as it is under growing pressure from the legal action over pollution in the Amazon region of Ecuador. The plaintiffs are suing over chemicals and oil spilled by a joint venture that included Texaco, which was acquired by Chevron in 2001. An Ecuadorian court ruled last year that Chevron was liable for $19bn in damages. The company has refused to pay, and has few assets in Ecuador, so the plaintiffs’s lawyers have been pursuing the company in other countries. An attempt by Chevron to secure a US injunction putting a worldwide block on efforts to collect those damages was rejected by the Supreme Court last month.(Financial Times*)
Wal-mart eases pain of fiscal cliff
Deciding to bring forward the payment of Wal-Mart’s quarterly dividend by six days could save the family of its founder Sam Walton about $185m in taxes. The world’s largest retailer is among companies in the US that have decided to pay their dividend early to avoid a possible increase in dividend taxes at the end of the year. Others are seeking to avoid the tax increase by paying money that they would have returned to shareholders next year as a special dividend this year. The tax rate on dividends was cut to 15 percent as part of a package of measures introduced by President Bush in 2001. That cut is due to lapse on December 31 as part of a series of tax increases and spending cuts that have been dubbed the “fiscal cliff” because of their potential impact on the American economy. Assuming that the Bush cuts are eliminated, the tax on dividends will rise to 39.6 percent for higher-rate taxpayers and 44 percent for the very rich. More than 59 companies have said they will pay a special dividend in the final quarter of this year, compared with 15 last year. (Times*)
Environment
CCS to compete with renewables ‘as early as the 2020s’
Fossil fuel power generation with carbon capture and storage (CCS) has the potential to compete cost-effectively with other low-carbon forms of energy in the 2020s, according to a report published today. Commissioned as a collaboration between the Department of Energy and Climate Change (DECC), TheCrown Estate and industry members, the report claims the sector will be able to generate electricity at an average cost approaching £100 per MWh by the early 2020s, and at a cost significantly below £100 per MWh soon after. The report states that reductions in the cost of CCS electricity can be achieved in the early 2020s through investment in new capacity and technologies. In the early 2020s, progressive improvements in CO2 capture technology capacity should be available at large power stations, according to the report. The Secretary of State for Energy and Climate Change, Ed Davey, claimed the report’s findings demonstrated great potential for the future of the industry. (Edie, Independent)
Unilever, Shell, Swiss Re, Skanska back Carbon Pricing
More than 100 international corporations including Unilever, Royal Dutch Shell, Statoil, Swiss Re and Skanska have called on policymakers to develop a clear, transparent and unambiguous global carbon price to reduce greenhouse gas emissions. The joint statement was coordinated by The Prince of Wales’ Corporate Leaders Group on Climate with contributions from The World Business Council for Sustainable Development and The International Emissions Trading Association. The Carbon Pricing Communique, as the statement is known, was issued in advance of the UN Framework Convention on Climate Change in Doha next week. Market-driven carbon prices would offer regulatory certainty and create a level playing field to drive low-carbon investment and innovation, said the businesses in the joint statement. The companies prefer market-based approaches, such as emissions trading, “which offer both environmental integrity and flexibility for business.”(Environmental Leader)
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