Nestlé chairman, Peter Braback-Letmathe, has argued that more value must be put on water use through market pricing mechanisms that could drive greater efficiency measures. Braback-Letmathe outlined three options that could help accelerate resource savings across business and industry, but cautioned that the notion of pricing was "a very delicate issue" in terms of how water is perceived.
Acknowledging that pricing regulation could be one way forward for water management, he also pointed to two other possible solutions – cost curving and shadow pricing. All three were "not necessarily conflictive" he added. He highlighted India as an example, where the work of Water Resources Group – a global public-private collaborative platform – has shown that for a total cost of $5.6bn per year, the country's water demand and supply needs could be balanced out. (Edie)
Investors call for sustainable food solutions
The Food and Agriculture Organisation (FAO) estimates $83bn per year needs to be spent over the next 30 to 40 years to meet the global population's food requirements by 2050. At the Climate Change and Ethical Investment conference, held by Investment Week, the organisation stressed the increasing need for new solutions that are both sustainable and ethical. The social consequences of rising wheat, oil and dairy prices, which are set to increase between 15 and 45 percent over the next decade, puts food security along with climate change and GM crop technology high on the agenda of challenges facing food production. The role of business in managing future risk was outlined by Ecclesiastical Investment Management which identified mechanisation, fertilisers, crop protection, plants, seeds and livestock, and aquaculture, as key themes underpinning food production issues. (Business Green)
Corporate Reputation
Pressure on gun industry after school shooting
America's thriving gun industry, which has been riding high on a surge in sales, is under increasing pressure in the wake of last week’s primary school shooting. Responding to a national wave of revulsion over the 27 murders in Connecticut, the retail chain, Dick's Sporting Goods, suspended sales of semiautomatic rifles at its 480 stores, while Wal-Mart deleted from its website a listing for a similar rifle. Private-equity firm Cerberus Capital Management also said that it would try to sell Freedom Group, the manufacturer of the Bushmaster rifle that police say was used in last week's shootings. Shares of gun makers and some retailers have been affected, for example Smith & Wesson Holding Corporation, whose stock had nearly doubled this year, fell ten percent on Tuesday. (Wall Street Journal, CNBC)
Penguin settles with US over claims of e-book price setting
Penguin has agreed to settle with the United States government over allegations of price-setting with Apple in the e-book market. The British books group is the latest publisher to settle with the Department of Justice, after Hachette, HarperCollins and Simon & Schuster agreed similar deals in April. Apple and five publishers faced accusations that they illegally colluded over prices, as part of an effort to fight price-cutting by Amazon, the dominant player in e-books. US authorities alleged the publishers were using the "agency model" to allow them to set the cost of e-books at a potentially higher price, while letting Apple benefit by taking its usual 30 percent cut. Pearson, the owner of Penguin, strongly denied any suggestion of price-fixing. But, under the terms of the settlement, Penguin will drop any agreements with Apple that prevent price-discounting. It has also agreed to set up "a strong anti-trust compliance programme" to tackle competition issues. (Independent)
Finance & Banking
Fannie Mae and Freddie Mac in '$3bn Libor loss'
US mortgage lenders, Fannie Mae and Freddie Mac, may have lost more than $3bn (£1.8bn) as a result of the Libor scandal, regulators have said. The estimated loss was given in an unpublished internal memo from a federal regulator responsible for overseeing the two state-owned lenders. It also said legal action against banks involved in fixing the Libor rate should be considered. Dozens of institutions are under scrutiny for allegedly rigging Libor. This week UBS agreed to pay a total of $1.5bn to UK, US and Swiss regulators after admitting its traders tried to manipulate Libor, while Barclays was fined £290m by US and UK authorities in June. The potential loss to Fannie Mae and Freddie Mac estimated by the Federal Housing Finance Agency (FHFA) is among the largest so far reported, according to the Wall Street Journal. (BBC)
COMMENTS