Chip maker Intel has led the way among US companies by releasing its first conflict minerals filing to the US Securities and Exchange Commission, ahead of the deadline of 31 May. Under the recently-passed Dodd-Frank Act, publicly-traded companies must submit a “Specialized Disclosure” report to the SEC, disclosing their use of conflict minerals originating in the Democratic Republic of Congo (DRC) or adjoining countries. One year ago, Intel set a goal to manufacture the world’s first conflict-free microprocessors, and in January 2014 Intel’s CEO Brian Krzanich announced that this had been achieved. The SEC filing provides details on the company’s long-term efforts to work with its supply chain and industry groups, including the Electronic Industry Citizenship Coalition and Global e-Sustainability Initiative, to source and certify tantalum, tin, tungsten and gold that has not financed or benefited armed groups. The filing has been released on the same day as Intel’s 2013 Corporate Responsibility report, which also includes updates on the company’s environmental sustainability, employee engagement and education initiatives. (Intel)
Retailers including H&M, New Look and Zara owner Inditex are to meet the Cambodian government early next week to seek better treatment of clothing factory workers in the country. The meeting, which will also be attended by international union IndustriALL, comes as workers campaigning for an increase in the national minimum wage and improved conditions in factories have faced detention and intimidation in a country where few trade unions operate. A series of mass faintings at clothing factories have also highlighted poor conditions. IndustriALL’s general secretary, Jyrki Raina, who will be attending the meeting and also representing the ITUC and Uni Global Union, said: “Despite assurances from the government in February, there have since been unprecedented levels of intimidation, violence and a declining respect for the rule of law, which together constitute a grave attack on union and worker rights. The concerted message from global unions and brands to the Cambodian government is clear: political stability and respect for human and worker rights are essential to maintaining sourcing in Cambodia.” (The Guardian)
Waste
EU moves to scrap ‘best before’ labels in bid to cut food waste
A group of European Union states led by the Netherlands and Sweden are calling on the European Commission to scrap ‘best before’ labels on a host of long life products in a bid to cut down on food waste. The proposal, backed by the governments of Austria, Denmark, Germany, Luxemburg, Sweden and the Netherlands, is designed to reduce the estimated 90 million tonnes of edible food that is thrown away throughout Europe each year. Under the plan, manufacturers would no longer have to put a best before date on foods that people keep in their cupboards for a long time such as rice and pasta. Dutch Minister for Agriculture Sharon Dijksma said: “It is a breakthrough that many countries have reached a decision about addressing food waste. Consumers are confused about the best before dates and that leads to many kilos of non-consumed food needlessly being thrown out. Addressing food shortages will increasingly become a huge challenge due to the growing world population. It is therefore important to take action now.” (Edie)
Policy
Corrupt British companies face fines of 400 percent of illicit profits
British companies that bribe foreign officials to win contracts, commit fraud, or launder money, face fines of up to 400 percent of their illicit profits, under new penalty guidelines. In the most serious cases companies will pay fines comparable with those meted out in the US, where penalties can be as high as hundreds of millions of dollars, legal experts said. The proposals for England and Wales, which are being set out today by the Sentencing Council, allow judges for the first time to weigh harm done to the victim rather than purely the financial amount defrauded. The plans, which were first floated last summer, are part of wider penalties for individuals found guilty of committing white-collar crime, and are expected to come into force in October. Current guidelines for financial crime do not cover corporate offences, which has led to varying sizes of financial penalties. “Because of the cross-border element to fraud and bribery investigations, it was really key in the UK that we get fines that have some sort of accord with what is going on in the States,” said Jonathan Fisher QC, who specialises in financial crime cases. (Financial Times*)
Innovation
Toyota develops chips for hybrid cars to boost fuel efficiency
Toyota Motor Corporation has developed a computer chip for its gas-electric hybrid cars that could boost fuel efficiency by 10 percent and allow the automaker to install the hybrid system on more of its vehicles. The maker of Prius hybrids, along with auto parts maker Denso Corp, has developed a semiconductor that limits power loss and allows for a smaller hybrid system. “A key way to improve fuel efficiency is to improve power semiconductor efficiency,” said Kimimori Hamada, a Toyota engineer. Toyota’s push in semiconductors highlights how carmakers’ competitiveness is increasingly tied to electronics rather than to traditional mechanical engineering. It also reveals the scope for further improvements in gas-electric hybrid technology nearly two decades after Toyota led the market with the launch of the Prius in 1997. (Reuters)
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