World’s largest automakers reach landmark agreement on responsible supplier standards
The Automotive Industry Action Group (AIAG) and CSR Europe, facilitators of the European Automotive Working Group on Supply Chain Sustainability, have announced an unprecedented agreement among 14 global automakers on a set of standards outlining expectations for suppliers on key responsibility issues including human rights, environment, working conditions and business ethics. Participating members aligned with the Automotive Industry Guiding Principles to Enhance Sustainability Performance in the Supply Chain are BMW Group, Chrysler Group, Daimler, Fiat, Ford, GM, Honda, Jaguar Land Rover, PSA Peugeot Citroen,Scania, Toyota, Volkswagen, Volvo Cars and Volvo Group. “With a singularity of purpose and a common voice, the key players in our industry are collaboratively reinforcing the individual commitments each has made to doing business in a socially and environmental responsible way,” said J. Scot Sharland, executive director at AIAG. “It’s imperative that we work together to develop, socialize and deploy industry best practices on a range of issues for our global supply chains.” (Sustainable Brands)
Investors call for supply chain transparency legislation in UK modern slavery bill
Investors with a total of £195 billion in assets under management are calling for Transparency in Supply Chains (TISC) legislation to be embedded in the UK modern slavery bill. TISC legislation, which has been successfully piloted in California, would require companies to publish the steps they are taking to address the issue of modern slavery. The investors, who include Rathbone Investment Management, F&C and Ecclesiastical, argue that complex supply chains can leave business vulnerable to association with human rights abuses and that embedding transparency legislation will encourage companies to take action.. Failure to manage human rights abuses can “impact dramatically on companies and their shareholders” due to reputations being damaged and supply chains being disrupted, they added. Matt Crossman, of Rathbone Greenbank, said, “It is in the best interest of business to join the fight against modern slavery. A commitment to TISC means business reputations are enhanced and long term returns are safeguarded whilst transitioning at risk people out of forced labour and modern slavery.” (Blue and Green Tomorrow)
Tax
A fifth of UK big businesses pay no corporation tax
One in five of Britain’s large businesses paid no corporation tax last year, while more than half paid less than £10m, according to an official report into the mounting cost of tax reliefs. The National Audit Office calculated that the cost of tax reliefs had increased from 16 percent to 21 percent of gross domestic product since 2005. The government’s spending watchdog also found that 21 percent of all corporate tax in 2011-12 was paid by only 35 of the UK’s 975,000 companies. It said its figures showed the uneven distribution of corporation tax and the impact of trading conditions on individual companies. Patrick Stevens, of the Chartered Institute of Taxation, said companies often paid no corporation tax because of trading losses – a factor noted after the 2008 recession – and incentives such as capital allowances. (Financial Times)*
Renewable Energy
First China CERs come to market, sixth pilot exchange starts next week
China’s National Development and Reform Commission has given approval for two wind farm projects to supply carbon emission offsets to the country’s fledgling carbon markets. The two projects are expected collectively to generate around 1 million Chinese Certified Emissions Reductions (CCERs) offsets annually. This is the first approval of domestic carbon credits to be generated by the country’s large and fast growing clean energy sector. To date, carbon credit trading has been exclusively between industrial companies emitting greenhouse gases on the five pilot carbon markets currently in operation. From next Wednesday, 2 April, a sixth pilot market is due to come online for Hubei province, in central China. The province will issue around 300 million permits for the year 2014, making it China’s second biggest emissions market after Guangdong. PetroChina has already agreed to purchase CCERs for 16 yuan (USD2.58) each from one of the approved projects owned by power generatorLongyuan. (Clean Biz Asia )
Renewable electricity share at 15% in 2013 as UK emissions fall 2%
The UK government’s latest energy statistics reveal that the production of renewable electricity in the UK increased by 3.5 percentage points in 2013, with renewables now accounting for 15 percent of the UK’s needs. Data from the Department of Energy and Climate Change (DECC) said that renewable energy generation grew by 28 percent in 2013, while capacity increased by 25 percent. On the other hand, coal production was 25 percent lower than in 2012, oil production fell by 8.8 percent and natural gas experienced its lowest levels of productivity, although fossil fuels imports continued to rise. Overall, UK greenhouse gas emissions fell by nearly 2 percent in 2013, thanks to less coal being burnt. Wind power alone accounts for 50 percent of clean energy production, while regionally almost half of Scotland’s energy needs are now met by renewable power. Nina Skorupska, chief executive of the trade body the Renewable Energy Association (REA), commented, “Renewable power projects, from biomass plants to wind farms, are helping reduce the UK’s contribution to climate change, while also limiting our dependence on imports and creating jobs in the new green economy.” (Blue and Green Tomorrow)
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