Prince of Wales launches CFO sustainability network
Chief Financial Officers (CFOs) from a number of European businesses, including BUPA, Burberry, Sainsbury’s and Unilever, have joined a network aimed at embedding environmental and social issues into company strategy and finances. The Chief Financial Officer Leadership Network will focus on developing and sharing successful strategies which will include improved modelling of future risk and uncertainty, as well as engagement with investors and other stakeholders to increase understanding of the commercial benefits of sustainable business models. Commenting on the Network, His Royal Highness the Prince of Wales said that, “CFOs have a vital role to play in making sure their businesses thrive… The bottom line is that sustainable business equals good business.” The CFO of Sainsbury’s, John Rogers, added that “HRH the Prince of Wales has rightly recognised the vital importance of bringing sustainability issues into the very heart of corporate governance and accounting.” (Edie)
Fuel efficiency reaches record high in the US
The average fuel economy of new vehicles sold in the US hit a record high of 23.6 miles per gallon (mpg) according to the Environmental Protection Agency (EPA). The EPA said that this shows an increase of 1.2 mpg from last year and is the second largest increase in the last 30 years. This boost is believed to be part of a trend that has seen fuel economy increase by 12 percent since 2008, and 22 percent since 2004. Oil traders and analysts have said that improved fuel economy could curb fuel demand growth, the effects of which should appear as drivers replace older vehicles with newer, more efficient models. (Eco-Business)
Reporting
Less than 10 percent of Hong Kong’s listed companies reporting on carbon
A new report by Carbon Care Asia, a carbon strategy company, shows that less than 10 percent of Hong Kong listed companies are measuring or reporting on their carbon footprints. Research of 216 listed companies found that 26 had issued formal reports on their carbon emissions and only five had set clear targets on reduction. Many smaller firms were largely unaware of their carbon footprints. The survey suggested that the business sector in Hong Kong was dragging its heels over global warming and risked falling behind rivals in Singapore. Albert Lai, CEO of Carbon Care Asia, said that, “Hong Kong needs bold action to tackle the climate change challenge. Carbon reporting is not only the first step towards a low-carbon economy, but also a wake-up call for company executives.” (CleanBiz.Asia)
Human Rights
Companies in Middle East must put human rights above the bottom line
A new report by the Business & Human Rights Resource Centre, an international human rights organisation, is urging companies operating across the Middle East to uphold human rights. The report examines how businesses operating in the region are meeting their responsibilities to respect the human rights of workers and communities. The report highlights positive steps taken by some companies but also flags a string of abuses still occurring. Phil Bloomer, Director of the Business & Human Rights Resource Centre said that “for too long, human rights have been ignored by too many businesses operating in the Middle East and North Africa…there is hope that the tide is turning, and scrutiny of business conduct is on the rise in many countries.” (Ethical Performance)
Employees
UK gender pay gap widens
The gender pay gap has widened for the first time in five years according to the Office for National Statistics. The pay gap for full time workers rose to 10 percent from 9.5 percent last year. Men’s median gross hourly earnings, excluding overtime, grew by 2.5 percent to £13.60, whilst women’s hourly earnings rose by 1.9 percent to £12.24. These figures followed an earlier report by PwC which showed that progress in encouraging more women into work and closing the gender pay gap had ground to a halt since the financial crisis struck in 2008. The national trade union centre in the UK, the TUC, called for tougher action to force companies to look at their pay gaps, and urged the government to lead the way by making all new jobs available on a part-time or flexible basis. (The Times*)
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