The United Nations International Labour Organisation (ILO) has urged Fifa, the governing body of football, to halt the exploitation and rising death toll of migrant construction workers in Qatar during the country’s preparation for the 2022 World Cup. Qatar is spending in excess of £100 billion on facilities and infrastructure ahead of the 2022 tournament and more than a million migrant workers are reported to be involved in the construction of nine new stadiums, motorways, metro systems, railways and several hundred thousand new hotel rooms. This week, the Nepalese Government announced that 70 nationals had died on building sites in Qatar since the beginning of 2012 and that hundreds more workers had been injured in falls and accidents with machinery and vehicles. Nada al-Nashif, the ILO Director for the Arab states, said that “Fifa’s power of persuasion is very big, bigger than the ILO, and they should use their influence. We mustn’t just make a few declarations and move on.” (The Guardian)
Ryanair fined for breaking French labour laws
A French court has ordered the Irish airline Ryanair to pay €9 million in damages and fines for breaking local labour laws after the airline employed staff on Irish contracts at a base in France. The court said that Ryanair’s operation amounted to “veritable social dumping” as employers in France are required to pay social charges in the region of 40-45 percent of employees’ wages, compared with 10.75 percent in Ireland. Ryanair has accused the French authorities of using the case to protect Air France-KLM from competition and said that it would appeal the decision “all the way to the European courts” as “people were employed on Irish contracts, operating on Irish registered aircraft [which is defined as Irish territory] and have already paid their taxes, social taxes and state pension contributions in Ireland, in full compliance with Irish and EU regulations.” Employment agencies and trade unions stated that Ryanair’s offices, equipment and management at the base near Marseille showed that its operation was implanted in France and consequently should be subject to French regulation. (Financial Times*; The Guardian)
Responsible Investment
PwC: Private equity firms focusing on sustainability risks instead of opportunities
According to a new report by PricewaterhouseCoopers (PwC), private equity firms are failing to recognise the value of environmental, social and governance (ESG) factors and are consequently missing out on opportunities to generate higher returns. The report, which is based on a survey of 103 private equity companies across 18 countries, found that less than 15 percent of participants calculate the value they create through ESG activity, even though more than 80 percent said that they monitored ESG activities. Phil Case, the Director of Sustainability and Climate Change Practice at PwC, said that “not only could PE houses generate more value through better ESG management, it is also possible for this value to be quantified and communicated to investors, acquirers and wider stakeholders.” PwC’s findings correspond with the recent UN Global Compact study by Accenture, which found that 79 percent of 1000 participating global chief executives said that understanding of ESG issues provided a competitive advantage in their industry. (Blue and Green Tomorrow)
Reporting
Study: only 52 companies in the FTSE 100 include carbon footprint in annual reports
The UK retailer Marks & Spencer has been ranked first in a study examining the extent and depth of carbon measurement and reporting practices of the UK’s 100 biggest listed companies, by the carbon management firm Carbon Clear. The other performers in the top 10 include BT Group, Aviva, Unilever,Sainsbury's, BSkyB, Whitbread and HSBC. The research found that although many businesses continue to take carbon management seriously, only 52 companies in the FTSE 100 include their carbon footprint in their annual reports. This is significant in light of the changes to the UK Companies Act which came into effect this week and will require UK listed companies to include global greenhouse gas emissions in their financial reports. The Chief Executive of Carbon Clear, Mark Chadwick, said that "the fact that a carbon footprint must now be included in the annual reports of publicly listed companies reminds us of the continued importance of a successful carbon programme. Companies will not be able to hide poor disclosure performance." (Edie)
Environment
Monsanto to utilise climate data to help farmers increase crop yields
Monsanto, the US chemical and agricultural biotechnology firm, has acquired the data science company Climate Corporation, with the aim of using data surrounding more extreme weather patterns to help to increase crop yields. The Chief Executive of Monsanto, Hugh Grant, said that “farmers today are challenged to make key decisions for their farms in the face of increasingly volatile weather conditions. Because of this we believe there is a real opportunity and value in working with farmers to manage the risks that affect them every year.” Climate Corporation’s weather forecasting and risk management tools are expected to be used alongside Monsanto’s FieldScripts product, which provides farmers with field mapping, soil data and seed recommendations. (Financial Times*)
Study: Singapore uses three billion plastics bags a year
According to a study by the NGO Singapore Environment Council (SEC), Singapore’s five million population uses three billion plastic bags a year. To tackle the wastage, the SEC said that “retailers should stand firm in their resolve to have cashiers ask if customers really need plastic bags.” The SEC has called for collaboration between the Singapore Government, retailers, restaurants and the public and has advised the Singapore Government to launch a mandatory nationwide “Bring Your Own Bag Everyday” programme in all commercial and retail establishments. Other recommendations include rethinking current waste management infrastructure, rebates for dining customers who reject plastic bags, and a “no-waste toolkit” for schools. (Eco Business)
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