PwC warns companies must act now to limit climate risks
The growing threat posed by climate change to business operations demands that companies invest in assessing their vulnerabilities and taking steps to mitigate risks, analysts have warned. Consultancy giant PwC has published a new report examining climate change impacts around the world, which concludes that the international threats and opportunities for UK business and investment are likely to be "an order of magnitude" larger than the domestic impacts. PwC said the concentration of key imports, such as food or materials used to manufacture high-tech products, from a handful of countries leaves overseas supply chains particularly vulnerable to changing climate patterns, which in turn directly exposes UK investors to climate change risks. (Business Green)
Directors to be liable for breaches of pay policy
Directors who serve on remuneration committees will be personally liable for overpayments that fall outside a company’s pay policy under the new “say on pay” regime that comes into force in October. Under the plans, quoted companies must obtain shareholder approval for pay policy at least once every three years. The final draft of the unpublished regulations, which are due to be laid before parliament this month, specifies that remuneration committee members will be liable both for the amounts of any overpayments and any claims for damages, unless they can prove they have acted honestly and reasonably. (Financial Times*)
Supply Chain
Indian Tea Board introduces sustainability code for tea industry
The Chairman of India’s Tea Board, a state agency of the government of India has said the board will unveil a 'sustainability code' for the tea industry and redefine the way it operates. The code will encompass all aspects of tea production from certification to maintenance of global safety standards. A spokesperson from the board said: “The aim of the initiative is to sustain the tea industry keeping globally accepted sustainability principles in mind to improve the social and economic conditions of the plantations." The code will also include parameters to be adopted to boost productivity, introduce labour welfare measures, maintain safety standards in factories and limit use of pesticides in the plantations. (Economic Times, India)
Tax
G8 summit aims to make “real difference” on tax avoidance
David Cameron, the UK prime minister, has said that action will be taken at the G8 summit to make "a real difference" to the amount of tax paid by corporations. He stated that steps to improve sharing of information by countries and to reveal the true owners of companies "would lead to a fairer tax system". The UK Government has already announced plans to require all UK companies by law to register full details of their beneficial owners, including offshore subsidiaries, with Companies House. The prime minister also said every country at the G8 would be signing up to an action plan on beneficial ownership and would be discussing ways to better share details between countries about the tax paid by firms in different jurisdictions. (BBC)
Corporate Reputation
Singapore authorities rap banks in rate rigging probe
Singapore's central bank has censured 20 banks for attempting to rig benchmark interest rates, including UBS, Royal Bank of Scotland and ING. The Monetary Authority of Singapore found that 133 traders had tried to influence the rates in an echo of the 2012 US/UK Libor rigging scandal. The banks have been advised to set aside funds of over S$1bn (£500m) each. Another 16 banks have also been ordered to set aside lesser amounts, including Barclays, DeutscheBank, JPMorgan and HSBC. The central bank ordered a review into the way banks located in the country set benchmark rates for borrowing and foreign exchange transactions. (BBC)
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