ICAP, the world’s largest interdealer broker, is being investigated by the UK watchdog, the Financial Service’s Authority (FSA), for alleged involvement in the Libor rate-fixing scandal. Whilst ICAP brokers have previously been linked to the Libor probe, a leaked internal memo from the FSA has confirmed that part of the firm has been an FSA target since at least March 2012. The news comes following months of investigation in to the fixing of the Libor rate, with companies such as UBS, Barclays, and RBS all paying hefty fines for their role in the scandal. (Financial Times*, Times*)
Cut bankers’ pay or risk another crash, IMF chief tells WEF
Christine Lagarde, the managing director of the IMF, has warned that “corrosive” inequality is hindering the world’s economic recovery. In a combative speech to an audience at the World Economic Forum (WEF), Ms Lagarde said that bankers’ pay should be cut to close the gap between the rich and poor, and that it might be necessary for nations to impose minimum wages in order to reduce income gaps. She also decried the fact that necessary reforms of the multinational banking sector were being watered down by industry lobbying. “Ultimately, this is all about accountability: we need a financial sector that is accountable to the real economy– one that adds value, not destroys it”, she said. (Independent)
Supply Chain
Victoria’s Secret detoxes
The parent company of Victoria’s Secret, Limited Brands, has committed to eliminating all hazardous chemicals from its supply chain and products by the end of the decade, becoming the latest organisation to respond to Greenpeace‘s high profile ‘Detox’ campaign. Limited Brands follows high street brands Benetton and Uniqlo in joining the programme in 2013, following in the footsteps of Zara, Mango, Espirit and Levi’s, all of which made the same pledge in 2012. In total, 14 international clothing retailers have now committed to phase out the use of toxic chemicals in their products and supply chain since the campaign. (Business Green)
Environment
Unilever reduces waste by one million household bins
Unilever has announced that is has managed to reduce the amount of waste sent to landfill by its operations by the equivalent of one million household bins, whilst simultaneously seeing a boost in sales and profit. This year over 130 Unilever factories across the world will send no waste to landfill, up from 74 at the start of 2012. The company is now well on its way to seeing total waste sent for disposal at or below 2008 levels, and has decided to bring this target forward to 2015, by which time it expects all 252 Unilever factories not to send any non-hazardous waste to landfill. (CSR Wire)
China boosts renewable energy to help fight the smog
Record-breaking levels of air pollution in north-eastern China, particularly in Beijing, appear to have spurred the Government to undertake a major programme to boost renewable energy use. Record smog is estimated to have caused 8,000 premature deaths in four Chinese cities in 2012. At some points, the concentration of hazardous particles per cubic meter of smog peaked at 993, nearly 40 times the hazard limit set by the World Health Organisation (WHO). The National Energy Work Conference held in Beijing this month sought to commit China to expand its global leadership in renewable energy. This year China is looking to add another 21 gigawatts (GW) of hydroelectric generator capacity, 18 GW of wind farms, and 10 GW of solar power plants, as part of its commitment for the biggest annual jump in capacity in these sectors for five years. (Asia Sentinel)
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