European Parliament passes “landmark” environmental and social reporting law
A reform to strengthen reporting of policies, risks and results regarding the impact of businesses’ activities on human rights, the environment and society has been adopted by the European Parliament. For the around 6,000 large European listed companies, credit institutions and insurance enterprises affected by the legislation, the disclosure of non-financial information will be part of their annual management report and will include issues arising from their supply chains. European Coalition for Corporate Justice‘s Jerome Chaplier said: “This is an important step forward. The reform recognises that the environmental and human rights impacts of companies are of key concern for society as a whole.” Amnesty International‘s European Institutions Office director Nicolas Beger added: “In cases such as the collapsed garment factory Rana Plaza in Bangladesh in April last year, proper reporting of risks could have rung the alarm bell in time.” The 599-55 vote in Strasbourg was welcomed by the European Parliament Rapporteur on Corporate Social Responsibility, Richard Howitt MEP, who first proposed the change and is welcoming the decision as a major step towards ‘integrated reporting’ by business worldwide. (Edie; S&D)
Supply Chain
Global auto industry accelerates action on conflict minerals
At a corporate responsibility summit for global automakers and suppliers near Detroit last week, the Automotive Industry Action Group (AIAG) announced an initiative to accelerate action on conflict minerals, which was identified in a new survey as the most significant issue facing the industry this year. The 2014 AIAG Global Automotive Corporate Responsibility Survey of more than 550 professionals working on corporate responsibility in automotive, manufacturing, and other industries in 40 countries illuminates the progress the industry has made on CR initiatives while also highlighting areas for improvement. According to the survey, nearly half of companies polled have a policy on conflict minerals reporting — yet only half of those companies with a policy said they will meet the May 31 deadline to file a Conflict Minerals Report with the U.S. Securities and Exchange Commission (SEC), as required by law. To accelerate industry action on the issue, AIAG has launched a conflict minerals awareness campaign with a microsite that explains this complex issue, the many uses for the minerals in automotive, and a plan for eliminating conflict from supply chains. (Sustainable Brands)
Climate Change
U.S. greenhouse gas emissions fall 10% since 2005
U.S. greenhouse gas emissions fell nearly 10 percent from 2005 to 2012, more than halfway toward the United States’ 2020 target pledged at United Nations climate talks, according to the latest national emissions inventory. The report showed that emissions dropped 3.4 percent from 2011 to 2012, mostly due to a decrease in energy consumption and fuel switching from coal to natural gas. The Environmental Protection Agency on Tuesday published the United States’ 19th annual emissions tally to the UN Framework Convention on Climate Change. The United States uses 2005 pollution levels as its benchmark to measure emissions cuts, and has a target to lower emissions by 17 percent from that starting point by 2020. Since 1990, the first year the United States kept the inventory, carbon dioxide emissions have risen just 5.4 percent. (Reuters)
Corporate Reputation
UK money transfer firms accused of excessive charges on Africa remittances
Britain’s leading money transfer companies are imposing a “super tax” on remittances to Africa and should be investigated by the government’s consumer watchdog, the UK’s leading international development thinktank said on Wednesday. The Overseas Development Institute called on the Financial Conduct Authority to look into Western Union and Moneygram as it issued a report which said Africa was losing $1.8bn a year from excessive charges on money sent home by workers in the rest of the world. Latest World Bank figures show that remittances from foreign workers are expected to be $436bn this year, more than three times what poor countries receive in overseas aid, but the ODI said the cost of sending money back to Africa was far higher in the UK than the global average. “Migrants sending $200 home can expect to pay 12% in charges, which is almost double the global average. While the governments of the G8 and the G20 have pledged to reduce charges to 5%, there is no evidence of any decline in the fees incurred by Africa’s diaspora. There is no justification for the high charges incurred by African migrants.” (The Guardian)
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