CSR an “essential ingredient” to business performance
New research by the Centre for Corporate Citizenship at Boston College has found that sustainability is becoming more embedded into business operations. The study of over 200 companies found that above-average industry performers are more likely to have a formal CSR department, a programme led at executive level, and higher budgets allocated for it. Almost 100 percent of the companies surveyed have funds in place for CSR, compared to 81% in 2010. Reputation enhancement was cited by the majority of firms as an important business goal attached to sustainability, followed by improving employee retention and recruitment, attracting new customers, and improving risk management. Commenting on the findings from the survey, a spokesman said that, “these are all signs that CSR continues to be more deeply embedded in business as more executives realize that positive environmental, social and governance measures correlate to positive financial performance, improved reputation, and solid risk management.” (Edie)
Tax
Special tax rules for internet companies ‘not viable’
Proposals for a tax crackdown on digital companies such as Google and Amazon are to be dropped. The Organisation for Economic Co-operation and Development (OECD) has concluded that designing special tax rules for internet companies would not be viable, given the growing digital presence in large parts of the economy. The analysis by the OECD comes as part of a G20-led push to overhaul the international tax system, with requests for ‘common principles’ to apply whether companies operate online or from physical premises. However, technology companies have opposed specific rules for the digital industry, which include the idea of giving taxing rights to countries where businesses merely have a virtual presence. UK retailer John Lewis has warned of companies such as Amazon “destroying the UK tax base” by out-trading its competitors. Britain collected just £54 million in corporate tax in 2012 from seven US high-tech businesses with aggregate sales of over $15 billion. (FT*)
Health & Nutrition
UK schools urged to ban high-caffeine, sugary energy drinks
Government advisor, John Vincent, co-founder of UK restaurant chain Leon has spoken out about the effects that energy drinks such as Red Bull and Lucozade can have on young people. Vincent, who compiled the government-supported School Food Plan, claims that these drinks can cause major behavioural problems in children and should be banned from schools and possibly from sale to young people. The British Soft Drinks Association states that high-caffeine energy drinks are not recommended for consumption by children, however little is being done to prevent children buying them and they are often the targets of marketing campaigns. A 500ml can of Red Bull contains around 13 teaspoons of sugar and the equivalent caffeine of two cups of coffee. Teachers have reported that pupils’ behaviour suffers and they are unable to learn with some head teachers already banning the drinks. Vincent said that, “the short-term high is causing disruption to children’s behaviour; our objective is to stop children drinking them.” (Guardian)
Energy
Boeing looks to green diesel to make aviation more sustainable
Aviation company Boeing, is working with the US Federal Aviation Administration to obtain approval for its planes to fly on green diesel. The company named green diesel as a “significant” new source of aviation biofuel; with at least 50 percent less carbon dioxide emissions than fossil fuel. Boeing’s researchers have found that green diesel is chemically similar to current aviation biofuel, and if approved it could be blended with traditional aviation fuel and used in any diesel engine. If approved, green diesel production from America, Europe, and Singapore could supply up to one percent of the world’s jet fuel demand. James Kinder from Boeing said that, “green diesel approval would be a major breakthrough in the availability of competitively priced, sustainable aviation fuel.” (JustMeans)
19 African countries form Clean Energy Corridor
Nineteen countries have committed to developing an ‘Africa Clean Energy Corridor’ to help the continent leap frog to renewable energy in the face of rising energy demand. Led by the International Renewable Energy Agency (IRENA), stakeholders believe a regional approach will attract the most investment and optimise the renewable energy mix. The corridor will span eastern Africa, from Cairo to Capetown, to meet growing energy demand. Demand for electricity is expected to triple in southern Africa, and quadruple in eastern Africa over the next 25 years, making the region’s current dependence on fossil fuels increasingly unsustainable. IRENA plans to facilitate the initiative through identifying new renewable energy development zones, facilitating government planning so that renewable energy has a bigger share of the energy mix, and fostering new financial investment frameworks to rapidly get projects off the ground. (Sustainable Business)
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