Report: responsible investment ‘increasingly important feature’ across EU
The European Union should support self-regulatory initiatives on transparency and highlight the benefits of responsible investment, the European Fund and Asset Management Association (EFAMA) has said. In its 2014 responsible investment report, the organisation said it recognises the need for the investment management industry to play its part in rebuilding investor confidence after the financial crisis. One of the issues highlighted by the organisation was the need for transparency so that investors could distinguish between different responsible investment offerings and make an informed decision. The report notes that at the end of 2011, the responsible investment market exceeded €6 trillion, up from €5 trillion at the end of 2009. EFAMA added that this highlighted that responsible investment was becoming an “increasingly important feature” of the European investment management industry and the association further called on the EU to recognise responsible investment as an incentive that can help encourage corporate responsibility. (Blue and Green Tomorrow)
Supply Chain
Primark to pay £6m more to victims of Rana Plaza factory in Bangladesh
Primark is to pay out a further $10 million (£6 million) in compensation to victims and families of the Rana Plaza factory collapse in Dhaka, Bangladesh, weeks before the anniversary of the disaster in which more than 1,100 garment workers lost their lives. The British retailer has agreed to pay $9m to the 581 workers, or their families, from New Wave Bottoms, Primark’s supplier, which was based on the second floor of the building and a further $1m will go into a communal compensation pot to be shared among all the 3,600 workers who suffered. Both payments will be made under a compensation scheme backed by the International Labour Organisation (ILO). Gilbert Houngbo, deputy director general of the ILO, said: “We hope that Primark’s payment will bring the debate out so that people will ask other brands ‘What are you doing?’”. Paul Lister, company secretary of Primark’s owner, Associated British Foods, said: “With the first anniversary of Rana Plaza fast approaching, we are determined to meet this responsibility to workers in our supply chain. We are therefore pleased to be in a position to now press ahead with payments.” (The Guardian)
The Rainforest Alliance (RA) has announced that it has lifted the suspension of IKEA subsidiary Swedwood’s Forest Stewardship Council (FSC) certificate, following an independent appeals committee evaluation of the company’s 2013 annual audit. Swedwood’s certificate, related to nearly 300,000 hectares (700,000 acres) in the Karelia Forest in northwestern Russia, one of the last remaining old-growth forests in Europe, was recently suspended after six major non-conformances were identified with the FSC standards following the last annual audit conducted by RA. “We are pleased to get the suspension of our FSC certificate withdrawn since it is important for us to demonstrate a responsible forest management. Our focus is now to continue our work with good forest management and make sure that the outstanding deviations are closed,” said Anders Hildeman, Forestry Manager at IKEA Group. (Sustainable Brands)
Environment
Malaysian plane disappearance puts spotlight on polluted seas
The search for missing Malaysia Airlines Flight 370 has highlighted pollution in the South China Sea and the lack of accurate data on its extent. A Vietnamese navy reported finding 6-mile and 9-mile slicks on the weekend; some observers had hoped they might provide clues to the missing plane, but the spills were determined to be bunker fuel from ships. Fishermen and rescue workers have also found life rafts, life jackets, a jet’s door, and plastic oil barrels, all of which turned out to be part of the baseline pollution of the water rather than debris from Flight MH370. The Chinese government reported in 2012 that the nation’s rivers dumped 93,000 tonnes of oil into surrounding oceans; however satellite imagery used in a 2012 study determined that this runoff accounted for only thirty-six percent of the oil found in China’s seas. According to the US Energy Information Administration a further forty-five percent of oil in the waters was from transportation, leading to oil slicks that generally garner little attention. (Clean Biz Asia, Bloomberg View)
Technology & Innovation
UK ‘lagging behind’ on water technology innovation
The UK’s share of the global water technology market could be worth £8.8 billion by 2030, providing 71,000 jobs and involving around 960 small and medium enterprises (SMEs), suggests a new report published this week by the UK Water Research & Innovation Partnership (UKWRIP). The report, HTech0: Tapping the Potential: A Fresh Vision for UK Water Technology, states that despite successful water privatisation, world class consultants and a reputation for fair dealing, the UK has just 3% share of the global water technology market and “lags way behind” pioneering countries such as France, the US, Japan and Germany. It also highlights global opportunities worth more than £30 billion in the next six years. Report lead Mark Lane, chair of British Water and UKWRIP business & economy action group leader, said: “The economic and environmental case for raising the UK’s global game on water technology innovation is compelling. But we must act fast. If we don’t make significant changes within the next three years, our competitors will have pulled too far ahead to catch up with.” (Edie)
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