In the wake of falling profits and spiralling exploration, increased shareholder pressure is urging oil and gas company Royal Dutch Shell to abandon plans for high-cost, high-risk drilling projects in the US Arctic Ocean. The campaign initiated by UK charity ShareAction, is expected to see thousands of people email their pension funds urging them to call for a change in Shell’s Arctic strategy. This push accompanies the publication of a new report, co-authored by ShareAction, Greenpeace, Platform, Oil Change International, Oceana, and Pacific Environment, which says that economic risks and operational questions arising from Shell’s planned Arctic projects “remain unanswered to the satisfaction of financial analysts”. Charlie Kronick, senior climate advisor at Greenpeace said that, “now is a good time for Shell to change direction on the Arctic. There is a growing divide within the oil industry over the feasibility of Arctic Drilling, and other majors have walked away from what they now recognise was a bad bet.” Louise Rouse, director of engagement at ShareAction added that, “this project demands that the investment community become more accountable to the people whose money they manage.” (Business Green, Share Action)
Employees
Honda appoints first woman to board
Japanese owned car manufacturer, Honda has announced that it is appointing a woman to its board for the first time. The appointment of Hideko Kunii to the board, along with the promotion of Issao Mizoguchi, a Brazilian of Japanese ancestry, to the position of operating officer, is seen as a bid to change perceptions of Honda’s corporate culture. Honda stressed that Kunii, who is also in charge of promoting gender equality at the University of Tokyo, was picked because she was the right person for the job, not because of her gender. Companies have come under fire within Japan for not promoting anyone other than Japanese men, leading Prime Minister Shinzo Abe to make increasing women in leadership positions a key government policy. However, while other Japanese companies such as Nissan have also taken steps to promote diversity, Honda is the first major Japanese company to appoint a woman to board-level. A variety of factors, including cultural expectations, the difficulties of finding childcare and a lack of role models, are blamed for the lack of women in the workforce, which is seen as affecting Japan’s potential for growth and innovation. (New York Times, Guardian)
Policy
Brussels poised to outline car emissions deal
The EU is today expected to set tough new targets for car emissions after striking a compromise deal giving carmakers an extra year to meet them. Last year member states agreed to rules to reduce carbon dioxide emissions from new cars by almost 30 percent by 2020, but the deal was later scuppered by Germany, Europe’s largest car producer. The new agreement will still require carmakers to reduce emissions by the same amount, but the deadline for full compliance has been pushed back to 2021. It also gives carmakers more flexibility on so-called “supercredits”, earned from selling low-emission cars, such as electric vehicles, which can then be used to reduce a carmaker’s overall emission rating. Emissions curbs are a significant issue for global carmakers given the investment required to bring down carbon dioxide output, with German carmakers including Daimler, Audi and BMW resisting previous curbs. Greg Archer, clean vehicles manager at environmental think-tank, Transport & Environment, said that, “whilst the one-year delay to the regulation was unnecessary, this is still a good deal for the EU economy, drivers and the environment.” (FT*)
Carbon capture scheme dragged into Scottish independence debate
A flagship project to combat climate change has been dragged into the Scottish independence debate after the UK energy secretary, Ed Davey, said its progress could be “more difficult” if Scotland votes to break away from the rest of the UK. The deal in question will allow Royal Dutch Shell to advance a carbon capture and storage scheme at a gas-fired power plant owned by Scottish and Southern Energy near Peterhead in Aberdeenshire. However, Mr Davey cast doubt on the future of the scheme if Scotland votes Yes in the September referendum on whether it should become an independent country, saying that, “it’s just a fact that if Scotland was to vote for independence and be by itself it would be more difficult because it would be more expensive.” The scheme is being funded from a pot of about £100 million as part of the UK’s efforts to become a world leader in carbon capture technology. Governments around the world have made similar commitments to carbon capture projects on power stations, but the high cost of such schemes has put a brake on many. (FT*)
Value Chain
Sainsbury’s makes packaging reductions with toilet roll
UK supermarket Sainsbury’s has announced that it has cut the amount of cardboard packaging used in its toilet rolls, leading to reduced carbon emissions. The supermarket introduced the environmental initiative to shrink the cardboard tubes inside its toilet paper rolls in 2012, in a bid to cut carbon emissions by taking 500 lorries off the road. In an update on the commitment, Sainsbury’s said that it had made its toilet rolls 24 percent smaller and saved 335 tonnes in packaging a year. This has been achieved by converting its own brand toilet paper range to a slimline model containing a smaller cardboard tube. The initiative forms part of Sainsbury’s ‘20 by 20 Sustainability Plan‘, which the supermarket launched two years ago. The retail giant has committed to making sure that its own packaging has been reduced by half compared to 2005 and has committed to send zero waste to landfill. (Edie)
COMMENTS