One of America’s biggest drugstore chains, CVS Caremark, has announced that it is planning to stop selling cigarettes and other tobacco products by October this year. The pharmacy chain estimates that it could lose $2 billion in annual sales from the decision, but called this incremental in its overall sales of $123 billion in 2012. Smoking is the leading cause of premature death in the US and whilst smoking rates have decreased from 42 percent of adults in 1965 to 18 percent today, the rate of reduction has stalled in the past decade. Troyen Brennan, chief medical officer of CVS, said that the paradox of pharmacies selling cigarettes had become more relevant as leading chains reposition themselves as an integral part of the healthcare system, through increased offerings of health advice and walk-in clinics. Abandoning tobacco products was “the right thing for us to do”, Larry Merlo, the president and chief executive of CVS Caremark, said; “put simply, the sale of tobacco products is inconsistent with our purpose.” (Times*, New York Times)
Corporate Reputation
Olympics protestors urge sponsors to condemn Russian gay laws
On the eve of the Winter Olympics in Russia, campaigners have urged major corporate sponsors to speak out about the way Russia is treating gay people, after a law passed last year that critics say fuels discrimination against gays and lesbians. The gay rights group, All Out, yesterday staged protests in 20 cities around the world, several of which took place outside branches of Olympic sponsor McDonald’s. Rights groups have also written to the heads of the 10 global Olympic sponsors, including Procter & Gamble, Samsung and Visa, calling on them to use their marketing to promote equality. Sponsors have said they are opposed to discrimination but say it is up to the International Olympic Committee (IOC) to ensure that the Games are free of prejudice. Meanwhile, clothing company American Apparel has teamed up with All Out to produce a range of protest merchandise which stresses ‘Principle 6’ of the IOC’s charter, which states that discrimination of any kind is “incompatible with belonging to the Olympic movement”. (Thomson Reuters, BBC, New York Times)
Underage workers in dangerous factories still linked to British labels
The British retailer BHS is reportedly still using factories in Bangladesh that are linked to unsafe conditions and the exploitation of workers. An undercover investigation, as part of ITV’s Exposure documentary series, has revealed that BHS, one of several brands in the Arcadia group, uses a contractor that owns factories guilty of serious safety abuses. Undercover footage of the Vase Apparels factory, which is owned by the same company that also owns BHS-authorised contractor Basic Shirts, shows managers coaching workers to lie to safety inspectors, and the building’s only fire exit padlocked shut. The footage reveals the failure of Western companies to implement the Bangladesh Safety Accord, which was signed by more than 100 retailers worldwide in response to the Rana Plaza collapse last April, in which more than 1,000 workers died. A spokesman from Arcadia said that, “our Group operates in over 40 countries and arranges inspections of hundreds of factories each year. We take our responsibilities seriously in all countries our suppliers source from.” (Times*)
Environment
Cities double climate change action
Sixty-three of the world’s biggest cities have almost doubled the measures they are taking to reduce climate change since 2011, according to a new report by the C40 Cities Climate Leadership Group. The 63 urban centres affiliated with the C40 have reported 8,000 climate actions that are currently underway, with 41 percent taking place on a citywide scale. These include introducing new energy efficiency regulations, public transport initiatives or flood mapping efforts in order to reduce greenhouse gas emissions and prepare for the impacts of climate change. C40 chairman and Rio de Janeiro mayor Eduardo Paes said that, “Mayors have real power to cut emissions and improve climate resilience, and they are taking action.” Michael Bloomberg, former New York City mayor and president of the C40 board, added, “by using data to show what works – and what’s possible – cities can inform the global conversation on climate change and contribute to aggressive national targets to reduce emissions. (BlueandGreenTomorrow)
Electric vehicles outsell conventional cars in Norway
Electric vehicles (EVs) are outselling conventional cars in Norway, with dealers predicting that within a year there will be more EVs in the capital, Oslo, than in Los Angeles and San Francisco combined. In the last three months of 2013, two electric cars – the Tesla Model S and the Nissan Leaf – outsold all conventional models. EVs currently make up over 10% of all car sales in the country. The Norwegian government has attempted to encourage an EV boom through incentives such as offering tax breaks and free parking and allowing drivers access to bus lanes. Snorre Sletvold, president of the Norwegian Electric Vehicle Association said that, “it is astonishing. We did not expect this. Electric cars started as an Oslo phenomenon but they are now selling all over Norway. By the end of February we expect to be the first country in the world where one in 100 cars on the road are electric.” (BlueandGreenTomorrow)
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