Switzerland has announced that it will hold a referendum on the 24th of November 2013 which, if passed, will make it illegal for businesses operating in the country to pay any staff more than 12 times the wage paid to their lowest earners. Coming just eight months after Swiss citizens voted to ban “golden hellos” and “golden goodbye” bonuses, the so-called 1:12 initiative is proposed as a way of reducing income inequality and distributing jointly-created wealth more fairly. According to the Swiss Federation of Trade Unions, the wages of the top one percent of earners in Switzerland increased by 39 percent between 1996 and 2010, in contrast to the wages of middle and low earners, who received increases of between six and nine percent. However, Patrick Emmenegger, a professor at St Gallen University, said that the proposal would “massively weaken Switzerland’s competitiveness” and Walter Kielholz, the chairman of the global insurance company Swiss Re, has warned that the company could move top staff abroad if the initiative were accepted. (Financial Times*)
Supply Chain
Unilever to use only “traceable” palm oil
Unilever has announced that by the end of 2014, all of the palm oil used in its products will be traceable to identify whether it is sustainably sourced. The company said that once it can fully trace its palm oil, it will be able to identify and exclude suppliers that produce the ingredient illegally or unsustainably. The company, which is one of the major international buyers of palm, purchasing approximately 1.5 million tonnes per year, has committed to buying 100 percent certified sustainable and traceable palm oil by the end of 2020, compared to five percent in 2012. Unilever was criticised for its supply chain by environmental groups in 2008 following news that some of its oil has been harvested from plantations responsible for mass deforestation in countries such as Malaysia and Indonesia. However, since then the company has made a number of changes in order to source its ingredients more sustainably. Richard Holland, the director of the WWF’s market transformation initiative, said that “Unilever’s 2014 commitment marks a very promising step on the continuing journey towards real market transformation to sustainable palm oil.” (Wall Street Journal; Blue & Green Tomorrow)
Tax
Private contractors used by UK Government not paying tax
According to two new reports by the UK National Audit Office (NAO), Atos and G4S, two private contracting firms that are carrying out over £2 billion worth of work for the UK Government, paid no corporation tax last year. In the reports, the NAO warns that the UK Cabinet Office lacks “commercial experience and expertise below senior levels”, and said that the information on its 40 strategic suppliers was “inconsistent and incomplete.” Margaret Hodge, the chair of the UK Government Public Accounts Committee, said that Government “departments have a duty to ensure that the taxpayer is not being ripped off and that people, not profit, remain at the heart of our public services.” The Cabinet Office said that “we know that the Civil Service lacks commercial capability and that contract management needs to be improved.” (The Independent)
Environment
China cutting building energy consumption by 20%
As part of a nationwide campaign to reduce energy consumption systems in old public buildings, the Shanghai Government has announced plans to cut energy consumption in the city by 20 percent in old offices, hotels, hospitals, schools and theatres by the end of 2014. Building owners will receive 80 yuan ($13.10) per square metre if they renovate their premises and achieve the 20 percent reduction in energy consumption through changes such as modernising lighting, installing solar panels and increasing the efficiency of air conditioning systems. This move comes as China pledges to improve energy efficiency after falling short of official targets for the past two years. The Chinese Government had committed to reducing energy intensity by 16 percent from 2010 levels by the end of 2015 but China’s National Development and Reform Commission acknowledged that China has lagged behind its annual targets, achieving only a 5.5 percent efficiency gain in the first two years of the plan. (China.org; Radio Free Asia)
Waste
“FoodSave” push for London businesses
The mayor of London, Boris Johnson, has launched a “FoodSave” scheme in partnership with UK Sustainable Restaurant Association (SRA) and the food charity Sustain to help small businesses in London to reduce food waste levels by offering best practice advice for partnering with farmers and energy companies to ensure that unwanted food is reused. The aim of the initiative is to directly support 240 businesses and deliver overall savings totalling £360,000 by March 2015 through not sending more than 1,000 tonnes of food waste to landfill. This initiative follows a report from the UK circular economy and resource efficiency organisation WRAP showing that the UK throws away 4.2 million tonnes of edible food per year. The organisations have launched the scheme with a handful of firms from the UK hospitality sector on board, and are now looking to expand the initiative early next year and are inviting companies in the food and hospitality industry to express an interest in taking part. (Business Green)
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