UK ethical consumer market now worth £54 billion – up 12% in 2012
The UK ethical consumer market, most notably the food and drink sector, grew by more than 12% in 2012 despite the global recession, according to findings by Ethical Consumer magazine. Its latest Ethical Consumer Markets Report says that the food and drink sector alone grew by 36% in 2012 and is now worth over £10 billion, while sale of products certified by the Rainforest Alliance grew by 47%. The figures follow data from the Fairtrade Foundation in February that said the Fairtrade sector grew by 14% in 2013. Rob Harrison, director at Ethical Consumer magazine, commented, “The annual Ethical Consumer Markets Reports have shown significant growth each year since the onset of the recession. This clearly demonstrates that the trend towards ethical buying is not a luxury, which consumers choose to drop when the going gets tough, but is an established and increasingly important consumer sector.” The report also found that consumers boycotted £3.6 billion worth of goods and services on ethical grounds in 2012 – a 37% increase since 2010. Top reasons for boycott were human rights abuse and tax avoidance by corporations. (Blue and Green Tomorrow)
Human Rights
India’s Congress party pledges jobs for low-caste workers
India’s governing Congress party has promised in its election manifesto to move towards affirmative action in private companies for low-caste and tribal people, a step that prompted immediate criticism from the private sector. But the manifesto also pledged to promote “a more flexible labour policy” – a longstanding demand of business groups that say the near-impossibility of suspending or firing non-performing workers discourages job creation. The conflicting promises highlight the growing importance of jobs and investment in Indian politics. The Congress manifesto launched on Wednesday said “the Indian National Congress is committed to creating national consensus on affirmative action for scheduled castes and scheduled tribes in the private sector”, upsetting corporate executives who complain that skills shortages, onerous labour laws and government bureaucracy already make India one of the hardest countries in the world in which to do business. (Financial Times)*
Innovation
GSK ‘public-private’ deal heralds revolution in search for new drug treatments
Multinational pharma company GlaxoSmithKline (GSK) has signed a pioneering deal with two public research institutes to develop new medicines based on patient DNA in the hope of discovering lucrative treatments for a range of illnesses with a genetic basis, from cancer to heart disease. GSK has promised to publicly release any early research findings for free in return for the expertise and help offered by the Wellcome Trust Sanger Institute and the European Bioinformatics Institute (EBI). The aim of the unique collaboration is to identify potential targets in the body for new drugs. In return for its investment, GSK hopes to develop drugs that have less risk of failure at the early stages of clinical trials, said Ewan Birney, associate director of the EBI. Patrick Vallance, president of pharmaceuticals research and development at GSK, said that by changing its business model and sharing information in a collaborative way, the company hopes to accelerate the development of new medicines. (The Independent)
Corporate Reputation
UK announces competition inquiry into ‘Big Six’ energy firms
The UK’s big six energy suppliers face the prospect of being broken up when the government regulator Ofgemannounces a shake-up of the industry today. A day after Britain’s second biggest gas and electricity supplier,SSE, announced an unconditional two-year price freeze, Ofgem will kick off a process that is likely to involve a full-scale competition investigation into the energy sector. This would probe whether British Gas, Scottish Powerand the other four ‘Big Six’ providers should be broken up into completely separate retail and energy generation businesses, in order to address persistent allegations that they disguise profits by hiding some of it in the accounts of their generation operations, and have contributed to a “cost of living crisis” across the UK. The investigation is also expected to cover why the main energy companies typically tend to increase and decrease their prices within a few weeks of one another – which has raised concerns about industry collusion – and to delve into British Gas’ dominating 41 percent share of the gas market. (The Independent)
Supply Chain
Draft principles for sustainable beef production open for public comment
The Global Roundtable for Sustainable Beef (GRSB), members of which include Walmart, McDonalds,WWF and the Rainforest Alliance, has announced that its Draft principles and criteria for global sustainable beef (production, processing and retail) are open for public comment and review until May 16, 2014. The document defines sustainable beef as a socially responsible, environmentally sound and economically viable product that prioritizes the planet, people, animals and progress. “GRSB does not intend to set standards or create a certification program but to provide a common baseline understanding of sustainable beef that national roundtables and other initiatives can use to meet their needs,” reads the report. The comments submitted on the GRSB draft document will be taken into account, redrafted and available for another review at the end of June. (Sustainable Brands)
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