Top Stories

October 21, 2013

Supply Chain

Tesco vows to act after study reveals 28,500 tonnes of food wasted

The UK supermarket chain Tesco has announced that it is changing its sales tactics in a bid to reduce in-store and household waste, following the results of a food waste “footprint” study in collaboration with the UK circular economy and resource efficiency organisation WRAP. The findings show that between January and June 2013, Tesco generated 28,500 tonnes of food waste across its operations, with 40 percent of apples and bakery items wasted, as well as 68 percent of bagged salad.  As a result, the retailer has announced that it is ending multi-buy offers on large bags of salad, removing “display until” dates from fresh fruit and vegetables and rearranging 600 in-store bakeries in a bid to reduce food wastage.  Tesco’s commercial director of group food, Matt Simister, said that “this is just the start and we’ll be reviewing what else we can do. We’re working with our suppliers to try to cut waste at all stages of the journey from farm to fork.”  (The Guardian; The Independent)

 

Employees

Bangladesh factory owners offer pay rises but workers say it is not enough

In an attempt to end a wave of employee strikes that have affected nearly a fifth of garment factories in Bangladesh, factory owners have proposed an increase in minimum wage of between 50 and 80 percent and are asking retailers to pay an increase of between 5 and 15 percent to defray the cost.  Following international pressure after accidents put factory employees’ poor working conditions and pay into the spotlight, factory owners have formally offered a minimum wage of 3,600 taka, however workers are calling for this to increase to 8,000 taka (£63) per month.  According to a survey by the Centre for Policy Dialogue, a think tank based in Dhaka, garment factory workers need approximately 6,450 taka per month just to cover their basic living costs.  Kalpona Akter, the executive director of the Bangladesh Centre for Workers Solidarity, said that any pay offer less than 6,000 taka is likely to spark widespread protests. (Reuters)

 

Female graduates in Saudi Arabia hitting “walls of tradition”

According to the Dubai based think tank, the Ideation Center, despite the Saudi Arabian Government’s priority for more women to be employed in the private sector, the private sector is not growing fast enough to employ the number of women that are finishing their education.  Additionally, many small and medium sized businesses have stated that they cannot afford to hire women because of the costs of complying with government segregation rules, which include having a separate female entrance and a security guard to stop men entering designated female-only areas.  Hala al-Dosari, who returned to Saudi Arabia after earning a PhD in the US, said that “employment is based on personal relationships and family ties, especially for the scarce female jobs. If not, it is a man’s world where even if you are hired, you remain unseen and static.” (Financial Times*)

 

Strategy

Sustainability gap widening between companies, says report

According to the Tomorrow Value’s Rating (TVR) 2013, which is compiled by the international corporate sustainability agency Two Tomorrows, the gap is widening between the companies that are leading in sustainable business practice and the rest of the pack. Now in its tenth year, the TVR assesses the sustainability performance of leading businesses worldwide, using a “probing methodology” to assess 50 companies in the Dow Jones Sustainability Index. The latest rating shows the top ten most sustainable companies scored an average of 83 percent, while the overall average was 63 percent.  The director of TVR, Jon Woodhead, said that leaders in the TVR, which include Unilever and Vodafone, “are characterised by the clarity of their vision when using market forces and societal trends to build a more sustainable business model.” (Edie)

Environment

Shanghai announces plans to combat air pollution

The Shanghai Municipal Transport and Port Authority has announced that it is considering imposing a traffic congestion charge as part of a broader plan to combat air pollution in China.  This follows the municipal government’s pledge to cut air pollution levels by 20 percent from last year’s levels by 2017. According to the World Health Organisation, China, which is the world’s largest carbon emitter, is home to some of the most polluted cities across the globe. Shanghai’s plan follows a move by the Beijing municipal government, which last week announced rules that will reduce the number of government and private vehicles on the roads, as well as reducing coal consumption and closing steel plants. As part of its anti-pollution plan, Shanghai Municipal Transport and Port Authority also announced that the city will focus on building infrastructure to promote the use of alternative-energy vehicles led by public transportation, consider raising emission standards and provide incentives to companies that use cleaner vehicles.  (Bloomberg)

 

 

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