Food and drink manufacturers reap rewards of water reduction
Members of the UK food and drink manufacturing industry have saved more than £2 million in the purchase of water alone between 2012 and 2013. Signatories of the Federation House Commitment (FHC), including Britvic, Mars, Unilever and Coca Cola Enterprises, have made significant water reductions since 2007, despite an increase in production of 8.2 percent during this time. Reductions in water have been achieved through a range of water management initiatives, such as a reverse osmosis water treatment system implemented by Kellogg which reduced water use at its Manchester manufacturing site by 26 percent in one year. The figures come as part of the Commitment’s annual progress report, published by resource efficiency organisation WRAP. The FHC helps companies in the food and drink sector reduce water use across their manufacturing sites. Environment Minister Dan Rogerson said: “Becoming more water efficient is not only good for the environment but passes on savings to companies which in turn helps create a stronger economy and fairer society”. (Edie)
Cargill to cut off suppliers who don’t provide deforestation-free palm oil
Agricultural giant Cargill, America’s largest palm oil importer, will no longer buy palm oil from sources associated with deforestation, conversion of peatlands, and social conflict. Their updated policy follows similar commitments made by other major palm oil buyers, including Unilever and Nestle, and comes after years of direct campaigning led by the Rainforest Action Network (RAN). The policy states: “We will work to ensure that all palm oil and palm products that Cargill produces, trades or processes are in line with these commitments”. Environmental groups have cautiously welcomed the move. “While the policy is a step in the right direction, it’s not as strong as the commitments made by the Palm Oil Innovation Group and lacks clearer targets for compliance, along with plans for independent verification,” Greenpeace said in a press release. Over the past two decades, palm oil has become one of the biggest drivers of deforestation in Malaysia and Indonesia. Cargill’s policy issues a warning to their suppliers, “we have removed suppliers in the past for non-compliance and will do so again in the future if necessary.” (Mongabay)
Governance
Gender diversity and the ‘leaking pipeline’ in Asia
In a number of Asian countries, women make up nearly half the formal workforce, according to national labour surveys. Yet on average, less than a quarter make it into senior positions and in some countries the figure is as low as one in ten. A recent Community Business study calls on companies to avoid a ‘leaking pipeline’ of female talent in their organisations. The research draws on employee data from 32 multinationals across six key markets: China, Hong Kong, India, Japan, Malaysia and Singapore. The problem is most severe in Japan, with women accounting for 59.2 percent of junior-level employees, 28.4 percent of mid-level workers and only 11 percent of senior colleagues. The report stresses that to address challenges of the leaking pipeline, creating an enabling environment is critical, but more challenging is addressing embedded cultural assumptions and behaviours. It urges companies to engage others in their dialogue, including business partners, and provide clear evidence of the link between gender diversity and business performance. (CSR Asia)
Corporate Reputation
Luxury cruise line accused of offering ‘environmental disaster tourism’ with high-carbon footprint Arctic voyage
Luxury US travel operator, Crystal Cruises, has announced it will offer a “once-in-a-lifetime” trip to experience the environmental devastation of the Arctic – using a mode of transport that emits three times more CO2 per passenger per mile than a jumbo jet. It will be the first ever leisure cruise through the Northwest Passage, only accessible now because of the melting of polar ice, and is being marketed at those with an interest in witnessing the effects of climate change first-hand. The voyage will take place on the Crystal Serenity, a 68,000-ton ship, yet there is no mention from the company of the boat’s own carbon footprint.Popular Science described the trip as “environmental disaster tourism”, quoting research which suggests that the carbon footprint of a cruise ship is triple that of a Boeing 747 flight. Company executive Thomas Mazloum said: “During this voyage, speakers will enlighten guests on information regarding climate change… With the recent retreat of polar ice, the time is right for us to lead the way within the travel industry”. (Independent)
UK energy firms accused of profiteering after profit margins predicted to double next year
The Big Six energy firms will double their profit margins in the next year, increasing accusations that they are profiteering while millions of households are struggling to afford to heat their homes. Energy regulator Ofgem is set to publish the results of its Supply Market Indicator (SMI), estimating that energy firms will pocket £106 for each customer in the next 12 months, up from an estimated £53 a year ago. The watchdog has told suppliers to explain to consumers why, when wholesale prices are falling for this winter, they are not seeing cuts in energy prices. “If [price reductions] are not passed on, we could expect further questions and stricter remedies for retailers if competition is not being seen to work”, said Dermot Nolan, Ofgem chief executive. British Gas has accepted the price settlement: “Ofgem’s proposal is welcome. We will now be reviewing these suggestions in more detail”, said Andy Manning, head of network regulation. (Independent) (Financial Times*)
Image source: “Fruit oil palm” by Maksim (Public domain)
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