Obama criticises US firms for becoming ‘magically Irish’
US President Barack Obama has accused firms of changing their mail address in order to take advantage of lower tax rates in the Republic of Ireland and other countries. Several large US companies have set up European bases in Dublin in recent years, including Google and Facebook. More recently there have been a series of controversial takeovers of Dublin-registered companies by US firms in a process known as “inversion”. “If you simply acquire a small company in Ireland or some other country to take advantage of the low tax rate, you start saying ‘we’re now magically an Irish company despite the fact that you may only have 100 employees there, and you’ve got 10,000 employees in the United States, you’re just gaming the system,” said Obama. Calls for change were also echoed by billionaire investor and Dallas Mavericks owner Mark Cuban, who suggested that investors should consider selling shares of companies that utilise the tactic. “When companies move off shore to save on taxes, you and I make up the tax shortfall elsewhere, sell those stocks and they won’t move,” he said. (BBC News) (Wall Street Journal)
Supply Chain
P&G studying smallholder practices to ensure deforestation-free palm oil
Procter & Gamble is attempting to eliminate non-sustainable sources in the production of its products, having recently upgraded its commitment to a zero-deforestation palm oil supply chain. The Company is conducting an in-field study, in partnership with the Malaysia Institute for Supply Chain Innovation (MISI) to understand the practices of smallholder farmers – and how they can be improved to protect local forests. Len Sauers, VP of Sustainability at P&G, said: “We want to make the sourcing of palm oil and palm kernel oil sustainable from start to finish – and still economically viable for local farmers who depend on the crop to support their families”. Mahender Singh of MISI believes that complexity of the supply chain, where the product changes hands many times between the growers, traders, millers, buyers, and ultimately the purchasing company, makes separating sustainable sources from non-sustainable sources “almost impossible”. Therefore, the study is “targeting zero deforestation by fostering an inclusive ecosystem that supports small farmers’ challenges.” (Sustainable Brands)
Environment
Beijing to stop polluting industries from further expanding in the city
The Chinese capital has decided to put an end to further expansion of resource-intensive and polluting industries in the city, in an effort to improve the quality of life of its inhabitants. Beijing’s economy grew an estimated 6.5 times from 1998 to 2012, significantly affecting the population and the environment. The local government said in a statement the city has grown too much: “Constantly-developing Beijing is now facing a series of problems, including overpopulation, congestion, water shortages and air pollution – these deep-rooted problems are related to the fact that the city has too many functions, and its economy is too big”. Under new rules, food processing, textile, construction materials, papermaking, chemical and oil refining companies will be prevented from further expanding in the city, in order to cut pollution and congestion. Restrictions will also be put in place on new construction projects. Air pollution problems in the city were exemplified earlier this year when smog reached 25 times the level considered safe by the World Health Organisation. (Blue & Green Tomorrow)
United Airlines offers carbon offsetting tool for cargo customers
United Airlines has launched a carbon offsetting tool for its corporate cargo customers to track and offset the emissions associated with their air freight accounts. Using the CarbonChoice tool, cargo customers with large-scale, regular shipments will be able to receive customised emissions reports with the option to offset their company’s carbon footprint through the airline’s partner, Sustainable Travel International. United Airlines said it was introducing the tool to assist its corporate customers in incorporating carbon-neutral business practices into their overall business strategy. Angela Foster-Rice, managing director of environmental affairs and sustainability, said: “Reducing United’s emissions through our fuel efficiency programs and helping our customers offset carbon emissions are some of the best ways United can be an environmentally responsible airline”. The airline has also partnered with Sustainable Travel International to ensure that all of its carbon offset projects have obtained independent third-party verification and are registered with recognised carbon offset programs. (Edie)
Corporate Reputation
US investor sues three banks over silver price
HSBC, Deutsche Bank and the Bank of Nova Scotia have been accused of attempting to rig the price of silver in the latest price fixing scandal to rock the banking industry. The banks, which set the silver price in London once a day via a conference call, are accused of conspiring to rig this price to reap large illegitimate profits. J Scott Nicholson, the investor who filed the law suit against the banks in New York, said: “The extreme level of secrecy creates an environment that is ripe for manipulation. Defendants have a strong financial incentive to establish positions in both physical silver and silver derivatives prior to the public release of silver fixing results”. Deutsche Bank is withdrawing from participating in setting gold and silver benchmarks in London on 14 August. A series of separate lawsuits have been filed recently, accusing banks of rigging the daily gold price. In May, the Financial Conduct Authority (FCA) fined Barclays £26 million for failing to prevent manipulation of the gold price in London. (The Guardian)
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