The first-ever social impact bond aimed at retail investors will begin fundraising this week. The Future for Children Bond, launched by Allia, a charitable social investment organisation in the UK, will aim to improve the lives of adolescents at risk of being taken into local authority care, as well as providing a financial return for investors. A fifth of the money raised will be used by Action for Children to provide “intensive support” to 380 children and their families identified by Essex county council. A further 78 per cent of the money will be used to provide a loan to a housing association, with the aim of ensuring that investors, at worst, receive their capital back in nominal terms at the end of the bond’s eight-year term. (Financial Times)
Corporate Reputation
Taxpayers face £500m bill over drug patent loophole
The Times has been told that the British National Health Service (NHS) and the UK taxpayer are being forced to pay an extra £500m because of a loophole in the drug patent system. Drug companies have been accused of making hundreds of millions of pounds through an EU children’s health scheme intended to transform medication for the young. The EU Paediatric Regulation, which has been signed by companies including GlaxoSmithKline, Pfizer and AstraZeneca, works by granting a six month extension to patents owned by companies, in order to encourage them to invest in the research and development of child medication. However, there is a concern that the scheme has bolstered drug company profits by making the NHS pay over the odds for medicines. (Times*)
Water
World Resources Institute encourages water management tool
The environmental think tank World Resources Institute (WRI) has published a global water risk map. It allows organisations to assess the kinds of risks associated with water in almost every part of the world. Several multinational firms have already begun using the tool, with McDonalds requiring 353 of its suppliers to assess their water risk and Procter & Gamble using it to understand water risk at each of its manufacturing sites. The online tool, called Aqueduct, identifies 12 different indicators that could contribute to water risk, including flood occurrence, drought severity, threatened wildlife and media attention. Len Sauers, Vice President of global sustainability at Procter & Gamble stated that "We want to make sure all of our operations are in locations that are best for both our business and the environment." (BusinessGreen)
Environment
Unilever freshens up deodorant packaging with compressed cans
Unilever will today unveil a major packaging breakthrough, after scientists spent years designing a more efficient compressed aerosol deodorant can. The new 75ml can is half the size of the traditional one, but lasts just as long. The product will be available for the Sure, Dove and Vaseline brands, and will hit shelves today. Unilever claims the new cans are the first major packaging reduction initiative for aerosol deodorants since they were introduced in the late 1960s. A spokeswoman for Unilever said the company had no plans to discourage consumers from using aerosols, but was instead keen to cut the environmental impacts of its packaging by reducing size and encouraging recycling. (BusinessGreen)
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