Shareholders at Apple's annual meeting have voted down a proposal to create a board committee on human rights, in the wake of a string of scandals at the company's Taiwan-based supplier, Foxconn. Tough working conditions at Foxconn's Chinese factories have led to suicides and riots, and in October the firm was found to be employing children as young as 14 at one plant. At the same meeting, shareholders declined to back Apple’s executive pay, after the chief executive, Tim Cook, was given a 51 percent increase in his salary and other members of the management team received large equity awards. (Financial Times*, Independent)
Samsung dismisses child labour allegations
Samsung Electronics has rejected allegations of child labour at suppliers in China, after three French rights groups filed a lawsuit accusing it of deceiving consumers by claiming to be an “ethical” company. Last year China Labor Watch, a New York-based group, published a series of reports claiming violations, including the use of underage workers, at two of Samsung’s Chinese suppliers. It also alleged illegal practices at six factories wholly or mostly owned by the South Korean group, including working hours far in excess of the legal limit. These allegations formed the basis for the complaint filed in Paris by three NGOs. Sherpa, Peuples Solidaires and Indecosa-CGT argue that Samsung is guilty of deceptive trading practices and false advertising. (Financial Times*)
Finance & Banking
EU agrees to cap bankers' bonuses
EU officials have struck a provisional deal on new financial rules, including capping bankers’ bonuses. Under the agreement, bonuses will be capped at a year's salary, but can rise to two year's pay if there is explicit approval from shareholders. The UK, which hosts Europe's biggest financial services centre, was opposed to any of caps on bank bonuses. Prime Minister David Cameron said the EU should concentrate on tightening up banks in other ways. London argues that the EU's bonus rules would drive away talent and restrict growth in the financial sector. (BBC)
Responsible Investment
U.S. pension funds urge utilities to up renewable energy and efficiency
Major U.S. investors and pension funds have filed shareholder resolutions with five electric power utilities—Ameren, Cleco, DTE Energy, FirstEnergy, SCANA—urging them to increase deployment of renewable energy and energy efficiency to mitigate climate-related risks and to manage water use. “The electric power sector is facing a range of risks, from strong storms to drought to stricter controls on greenhouse gas emissions. In each case, shifting more resources to clean energy and efficiency will help reduce risk to utility customers and shareholders alike,” said Mindy Lubber, director of the $11 trillion Investor Network on Climate Risk. (CSR Wire)
Policy & Research
Levi’s, BBVA, Ebay top social media sustainability index
Levi Strauss, financial company BBVA, Ebay, Danone and General Electric have been highly placed in the SMI-WiznessSocial Media Sustainability Index 2012. This annual review analyses how major companies use social media to communicate sustainability and corporate social responsibility. Telefonica, IBM, Marks & Spencer, FedEx and Microsoft made up the rest of the top ten on the index. Consumer goods companies dominated the top 100 in the 2012 list and, of those, retailers, food and beverage, household goods and automobile were well represented. Facebook was the social media channel most favoured by corporate sustainability communicators, closely followed by Twitter. (Environmental Leader)
Consumers
Companies partner to encourage lifestyle change in Singapore
The World Wide Fund for Nature (WWF) is partnering with Singapore companies for this year's ‘Earth Hour’ to encourage Singaporeans to make four lifestyle changes in support of the environment. The four changes encouraged by the initiative are: reducing the use of plastic bags, turning up the air-conditioning by one degree, switching to energy-efficient LED lights, and taking short showers. Corporate partners IKEA, Philips Lighting and Marina Bay Sands have issued challenges to the Singapore public, and are contributing resources such as reusable bags and LED lighting to help consumers. (Channel News Asia)
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