UK Government publishes regulations on mandatory carbon reporting
The UK Government has announced that companies listed on the main market of the London Stock Exchange must report their organisation's carbon emissions, as part of a reform shake-up to the Companies Act. From this year, company reports will now need to include disclosures on greenhouse gas emissions, in order to encourage the companies to think about ways in which these can be reduced. According to carbon management company Carbon Clear, the requirement is likely to be just the first step in a more ambitious programme, with the Government reviewing progress in 2015 and potentially rolling the scheme out to include all large companies by 2016. (Edie)
Inaccuracy revealed in Orange's CSR report
Telecommunications giant Orange has revealed that its water consumption increased by 7.8 percent in 2012 from 2011, despite the company reporting a reduction of 36 percent. Orange explained that the figure for Egypt's water consumption, amounting to 1,697,429 m3 for the year, was mistakenly left off the 2012 CSR report because "the cut off line for reporting was such that the information hadn't been recorded properly on time". Although the report was externally assured using the AA1000 standard, the data in the report was not independently verified. (Edie)
Indices & Rankings
Barclays and MSCI issue fixed-income sustainability indices
Barclays and MSCI Inc. have launched a family of fixed-income indices based primarily on environmental, social, and governance (ESG) factors, which could spur growth in sustainable investing by bond investors. The set of ESG indices is reported to be the first of its kind for bonds. The organisations issued three sets of indices. One set excludes companies engaged in particular activities, such as tobacco, nuclear power, or genetically modified organisms, which investors may want to screen out. Another set will only include companies with high ESG ratings determined by MSCI relative to their competitors and the third set will not exclude any companies, but will overweight or underweight issuers within a bond index based on ESG ratings. (Bloomberg)
Environment
Sainsbury's achieves zero waste to landfill in three years
British supermarket Sainsbury's has achieved its target of diverting all of its waste from landfill in three years, as part of its 20×20 sustainability plan. Surplus food that Sainsbury's cannot donate to its charity partners to feed vulnerable people is now processed into animal feed to support British farmers or used to generate energy through anaerobic digestion. In addition, all the general waste from its stores is recycled or turned into fuel. Sainsbury's chief executive Justin King said: "We know times are tough for many customers but they still rightly expect Sainsbury's to lead the way on the things that will always matter to all of us including caring for our environment." (Edie)
Tax
UK MPs demand Google tax revamp
UK MPs have demanded urgent changes to Google’s “highly contrived” tax arrangements in a hard-hitting report that said the internet giant’s tax avoidance had damaged its reputation and that of HM Revenue & Customs. The public accounts committee said Google put the “enormous profit” derived from the UK out of reach of its tax system. It said Google’s defence of its tax position by claiming that its sales of advertising space to UK clients take place in Ireland was “deeply unconvincing”. Google generated $18bn revenue from the UK between 2006 and 2011, a period when the company paid the equivalent of $16m of UK corporation taxes. (Financial Times*, BBC)
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