Talks chaired by the International Labour Organization and called for by IndustriALL, the global union, have failed to reach a deal on a compensation fund for the victims and their families of two Bangladeshi factory disasters. Over 1,100 people died in the April Rana Plaza building collapse and 112 workers were killed by the November 2012 Tazreen factory fire. Of all retailers who used the factories, only one third participated in the Geneva talks: Primark, part of Associated British Foods, was the only company reported as making a firm commitment on the funding proposals. The proposed fund sought to address loss of earnings, medical and funeral costs, and other costs incurred by victims and bereaved families. Companies absent from the talks described the proposals as being unclear and are seeking to deal directly with the victims and their families. (BBC)
Goldman Sachs investigated over working hours
The Zurich offices of Goldman Sachs have been inspected by a labour watchdog, following complaints by an employee group. The complaint states that the company does not keep adequate records of working hours nor make payments for overtime. The allegation, if proved correct, would constitute an abuse of trust-based working hours. Trust-based hours are normally reserved for employees on higher salaries near the top of an organisation: this complaint originated from Schweizerischer Bankpersonalverband, a union representing 10-15% of Switzerland’s lower-paid bank employees. This follows the recent suicide of two Swiss bank executives, and the death of an intern in London, leading to greater scrutiny on the personal effects of the heavy workloads and high-pressure associated with the banking industry. (The Guardian)
Policy
China plans to limit use of coal and vehicles
The Chinese government has announced ambitious plans to curb air pollution through limits on coal and high-polluting vehicle use. The plan, released by China’s Cabinet, is the culmination of a broad outline issued this year and comes in response to growing criticism of the condition of the country’s air, soil and water quality. All cities will be required to reduce the levels larger particulates by 10%. In addition to this, compared to 2012 levels, fine particulate matter levels must be reduced by 25% in the Beijing-Tianjian-Hebei area of Northern, by 20% in the Yangtze River Delta and by 15% in the Pearl River Delta. The NGO Greenpeace has accused the plans of being “very conservative”, requiring only a 2% reduction in coal’s share of energy use by 2017. The plan will also seek to remove all high-polluting vehicles that were registered before 2006 from roads by 2015. (The New York Times)
Responsible Investment
ESG factors are material in the sovereign debt market
A new study by the UN Principles for Responsible Investment (PRI) initiative, Sovereign Bonds: Spotlight on ESG Risks, has determined that environmental, social and governance (ESG) factors are material in the $47 trillion sovereign debt market. The report says that investors want analysts to include ESG factors in their analyses of different asset classes, in the same way that they would account for the state of a particular economy or the stability of the government. The report gives further weight to the argument that ESG factors play an important role in both investment performance and creditworthiness. PRI’s executive director James Gifford stated that “few have put [ESG analysis] to the test in fixed income until now.” (Blue and Green Tomorrow)
Standards
Sustainability accreditation developed for food destinations
The Sustainable Restaurant Association (SRA) has developed the first ever sustainability accreditation for food destinations. The rating developed as retailers and restaurants increasingly demonstrated their approach to responsible business. Hammerson Retail’s WestQuay shopping centre, Southampton, was the first to achieve the Sustainable Restaurant Association Food Destination, and has now achieved Three Star Sustainability Champion Status, the highest possible rating. According to Hammerson’s portfolio director, the “initiative will help drive sales over the long term as the provenance and behaviour of brands is becoming increasingly more important for consumers”. SRA research shows that 70% of consumers would choose a sustainable restaurant given the option, whilst 52% would be willing to pay more for a ‘sustainable’ meal. (edie)
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