Water shortages pose growing risk for American companies
US companies are taking water supplies into account when deciding where to locate their facilities amid growing concern about the resource, finds a report by California’s Pacific Institute and Vox Global. Based on 51 companies, the report found that AT&T and Hershey are among those taking such steps. The majority of companies surveyed said water was already affecting their decisions on where to locate facilities, and nearly 60 percent said water issues would affect both business growth and profitability in the next five years. Such measures represent a shift compared with the way companies thought about water a decade ago, said study co-author, Jason Morrison of the Pacific Institute. “Historically many companies have thought of it as a low-cost input and looked at it mostly within the context of their direct operations,” he said. “Now companies are increasingly thinking about water more broadly.” Companies also realise poor water use can affect their brand, Mr Morrison said. “Again, a decade ago, companies may not have thought about water and reputational risk in the way they do today”. (Financial Times)*
Human Rights
UN agency criticises Qatar over migrant workers’ rights
The International Labour Organisation has criticised Qatar over its policy towards overseas construction workers, as official figures revealed the death toll among migrants has not abated despite international pressure. The UN agency called for a series of reforms in the Gulf emirate to end the abuse of workers’ rights. Qatar is spending £123 billion in the next four years alone on a major infrastructure construction drive, of which the 2022 World Cup is part. Authorities have said they are investigating claims of migrant deaths and abuse of workers’ rights. The International Trade Union Confederation (ITUC) predict that 4,000 workers could die before a ball is kicked at the World Cup finals. “The ILO’s criticism of Qatar is exceptionally strong, and confirms the appalling lack of even the most basic legal protections for Qatar’s exploited migrant workforce,” said the ITUC general secretary, Sharan Burrow. “Qatar’s rulers must end their system of modern slavery and accept that their outdated and repressive labour laws have to change.” (The Guardian)
Energy
Unilever, Philips, 3M call for stronger energy-efficiency goals in Europe
Unilever, Philips, 3M and several other members of the European Alliance to Save Energy (EU-ASE) have signed a letter sent to the European Commission calling for a new set of competitiveness objectives to exploit all possible cost-effective energy-efficiency opportunities by 2030. In the letter, Monica Frassoni, President of EU-ASE, writes that the energy-efficiency goals set in the Commission’s recent White Paper are disappointing, and that a growing number of countries, including France and Germany, support taking stronger action. At the forthcoming European Council, major points of discussion will be European competiveness and the Commission’s proposals for a 2030 energy and climate change package. However, Frassoni says, the debate should not be framed as if there is a choice between the two. The business community represented by the EU-ASE believes that, by improving energy efficiency, Europe can improve its competiveness, shore up energy security and achieve climate-change objectives. (Sustainable Brands)
Norway leads EU renewable energy production; UK lags behind
The UK is the third lowest producer of renewable energy in the EU, and is far below its sustainable energy targets for 2020, a recent study has shown. The report, published by the European Commission‘s statistical body Eurostat, indicates that the UK is lagging far behind other EU countries with just 4.2 percent of its energy derived from green sources, in front of only Luxembourg (3.1 percent) and Malta (1.4 percent). In general, however, the report presents an upbeat view of EU energy consumption, recording that “Bulgaria, Estonia and Sweden have already achieved their 2020 targets” and that Europe’s overall share of renewables in energy consumption is up to 14 per cent in 2012. Topping the bill is Norway, for whom 64.5 percent of energy is produced sustainably, while France and Germany’s renewable contributions account for 13.4 per cent and 12.4 per cent respectively. (The Independent)
Tax
US companies stockpile nearly a trillion dollars offshore
US companies have stockpiled nearly a trillion dollars of cash offshore to avoid paying higher tax bills at home, according to an analysis released on Monday by Moody’s Investors Service, the credit rating agency. Business investment has not kept up with rising corporate profits in recent years, causing cash reserves to pile up, particularly in the tech sector, which accounts for nearly half of all the overseas cash. The highly conspicuous foreign holdings, which reached $947 billion last year, have brought an increase in shareholder activism as investors have pressed companies to pay out more of their financial reserves in dividends and stock buybacks. A strong corporate lobby has pushed for a tax holiday, which they argue would help the US economy. However, critics claim that much of the money that has built up offshore was the product of tax-avoidance measures and should not be allowed to escape higher US taxes in future. (Financial Times)*
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