Energy ministers from across the EU are to meet in Brussels today to discuss plans for new energy policies, amidst calls from a group of leading energy companies for the introduction of a new renewables target for 2030. SSE, Dong Energy and Acciona are amongst those calling for a greater commitment to targets for renewable energy use after the current, binding targets are reached in 2020. The fear is that without a new target for the post-2020 period confidence in long-term projects and supply chain investments could be undermined. The group of nine leading European energy companies, dubbed the Coalition of Progressive European Energy Companies, issued a statement ahead of today’s meeting arguing for the “continuation of targeted and ambitious renewables policies and measures towards 2030, such as new binding targets”. (Business Green)
Osborne to cut red tape on green tax
The Chancellor, George Osborne, is set to announce this week that he is cutting the bureaucracy surrounding a £1bn green tax, but has ruled out scrapping the levy, known as the carbon reduction commitment (CRC). Mr Osborn said in the Spring Budget that he would either revise or scrap the CRC, which is levied on all companies with energy bills of more than £500,000 a year. However, he is expected to announce in Wednesday’s Autumn Statement that rather than replace the CRC he will amend the scheme. Mr Osborne is also expected to give tax breaks to companies hoping to carry out “fracking”, the controversial process of extracting shale gas that was halted last year after the technique triggered two earthquakes in Lancashire. Mr Osborne is also expected to set up a body, Ofshale (Office for Shale Gas), to oversee the industry and allay concerns from environmentalists. (Financial Times*)
Corporate Reputation
Amazon, Google and Starbucks attacked over tax avoidance
Amazon, Google and Starbucks have been accused, by a committee of MPs, of an “immoral” use of secretive jurisdictions, royalties and complex company structures to avoid paying tax on British profits. The report released on Monday by the Public Accounts Committee (PAC), also criticises HM Revenue & Customs for being “way too lenient” in negotiations with corporations which pay little or no corporation tax. It calls on the UK Government to draw up laws to close loopholes and name and shame companies that fail to pay their fair share. The report’s scheduled release prompted press releases from companies such as Starbucks, which announced that it is reviewing its tax approach to Britain with a view to paying more. In response, The Chancellor, George Osborne, is set to announce an extra £77m a year for two years for more staff at HMRC to pursue companies which avoid paying tax. (Times*, Guardian,Reuters)
Environmental disasters hurt companies more than illegality
Environmental disasters or product recalls hit companies’ values more than the actions of rogue workers or illegal corporate activity, according to a study out today. Analysis published by the lawyers Freshfields Bruckhaus Deringer shows that while behavioural crises – triggered by companies acting illegally or by rogue employee activity – create lurid headlines that can cause share prices to crash by 50 percent on the day they become public, the majority of companies see their share price value recover within six months. In contrast, shares suffer very little in the first 48 hours of an operational crisis, such as significant product recalls or environmental disasters. However, the subsequent drop in share price can prove lengthy, with more than half of firms that have experienced such a crisis having to wait more than a year to see shares recover to their pre-crisis value. (Independent)
Food & Beverage
‘60 day bread’ could help cut food waste
Breakthrough technology that claims to keep bread edible for up to two months has been hailed as a food waste saviour in the US. American firm Microzap has developed a technique capable of keeping bread mould-free for up to 60 days. Typically bread goes mouldy in around 10 days, but by preserving its life the technology could slash the amount of wasted bread – which in the UK equates to almost a third of loaves purchased. However there are concerns that consumers may not show an appetite for such longevity over what is considered a ‘fresh’ product. The technology works by zapping bread in a sophisticated microwave array to kill off the mould spores. Microzap’s chief executive, Don Stull, claims the technique can also be used with a wide range of foods including fresh turkey and many fruits and vegetables. The technology could also impact bread in other ways, by enabling bakers to reduce the use of additives in their products. (Edie)
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