Coca-Cola suspends advertising campaign to donate budget to typhoon relief efforts
Coca-Cola has announced that it is suspending its brand in the Philippines so that it can donate its $2.5 million advertising budget to the typhoon relief efforts. Carlos Salazar Lomelín, the chief executive of Coca-Cola FEMSA, the retailer’s bottling company in the Philippines, said that the company “wish to express our heartfelt solidarity to all Filipinos in these difficult times.” It is estimated that more than 5,000 people died in Typhoon Haiyan, and more than 1,600 people are still reported as missing. The cost of rebuilding houses, schools, roads and bridges is estimated to be $5.8 billion. Coca-Cola Philippines and the Coca-Cola Foundation have made donations of $2 million in cash as well as over 129,000 cases of water to affected areas. (Huffington Post)
Policy and Research
UN calls for companies and aid agencies to invest directly to cut risk of corruption
According to a new study by the UN, a crackdown on corruption and higher spending on water supplies would yield more than $1 trillion a year in economic, health and environmental benefits. The report states that investments between $840 billion to $1.8 trillion a year over 20 years would provide universal access to safe drinking water and sanitation. However, according to a study conducted by the NGO Transparency International in 2008, 30 percent of spending on water-related infrastructure in developing nations is lost to corruption. Zafar Adeel, the director of the UN Institute for Water, Environment and Health, said that “corruption is the elephant in the room” for improved water supplies and the UN is calling for companies and aid agencies to bypass central governments and invest directly in local projects to limit the risk of corruption. (Reuters)
UK construction sector launches initiative to cut 24 million tonnes carbon per year by 2050
In partnership with the UK Government, UK construction and infrastructure firms, including Carillion, Network Rail, Thames Water and National Grid, have launched an initiative that aims to cut 24 million tonnes of carbon emissions from infrastructure projects by 2050. The Infrastructure Carbon Review, which has been produced jointly by industry and the UK Government, sets out a series of actions for clients and suppliers, including commitments to cut the volume of materials used in construction and suggestions on how to use existing resources more efficiently. The report presents the business case for reducing infrastructure emissions as a means of reducing costs, driving innovation and resource efficiency, and providing competitive advantages, and estimates that the UK economy could save up to £1.46 billion if carbon emissions are reduced and resources are used more efficiently. (Edie)
Corporate Reputation
Survey: Corporate tax avoidance is top of UK consumer concerns over business ethics
According to the latest annual ethical business survey by the UK Institute of Business Ethics, corporate tax avoidance has risen to the top of UK public concern about business behaviour, replacing executive remuneration as the top concern for the first time in six years. The findings follow global controversy over the low level of tax paid by companies including Amazon, Google and Starbucks. The ability of employees to speak out about company wrongdoing was rated the third most significant concern at 22 percent, with business attitudes to the environment and human rights coming in lower at 16 percent and 15 percent respectively. 35 percent of participants said that businesses are behaving less ethically than they did a year ago, an increase of seven percent. Business ethics continue to dominate UK consumer concerns, amid allegations that Royal Bank of Scotland has defrauded companies by putting them out of business, of profiteering by energy companies and of corporate governance failures at the Co-operative Bank. (Financial Times*)
Environment
WRAP: UK supermarkets cut waste by 1.7 million tonnes
The Courtauld Commitment, a UK Government initiative that aims to reduce the weight and carbon impact of household food waste, grocery product and packaging waste, has resulted in a reduction of food and packaging waste by 1.7 million tonnes. The agreement, which is delivered by the UK circular economy and resource efficiency organisation WRAP, is supported by over 50 retailers and manufacturers within the UK grocery sector. According to research by WRAP, despite increases in production and sales volumes, supply chain product and packaging waste across the UK grocery sector has been reduced by 7.4 percent, and UK household food waste has been reduced by 3.7 percent, saving approximately £3.1 billion. To reduce waste, Asda increased the shelf life of over 500 products to reduce waste and Premier Foods has introduced lightweight packaging for Hovis and Sun-Pat products. The chief executive of WRAP, Dr Liz Goodwin, said that the outcomes “show how collaborative working achieves results that have financial benefits to the UK and deliver significant reductions in environmental impact.” (WRAP)
Veolia launches tool to help companies manage water risks
The French company Veolia Water has launched a new tool to help companies and water utilities to understand water-related risks. According to the World Economic Forum’s Global Risks Report 2013, water crises are the second largest global risk for businesses over the next ten years. The True Cost of Water tool puts into monetary terms the direct costs, indirect costs and costs relating to water usage and risk to help businesses and municipalities to assess the financial implications of water risks and impacts to improve water management. Johann Clere, Veolia’s global director for business development, said that “with this tool, financial and high level decision-makers will be able to make better, more calculated choices when investing in industrial water sustainability solutions around the world.” (Eco Business)
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