Telenor uncovers child labour among Myanmar suppliers
Telenor, a Norwegian telecommunications firm, has discovered the use of child labour by its suppliers that are helping it build Myanmar’s first national mobile phone network, in a sign of the pitfalls facing investors in the fast-opening Asian frontier economy. Telenor said in its sustainability report published this week that the underage worker problems came to light after it carried out more than 700 unannounced health and safety inspections on companies and subcontractors building transmission towers. Five cases involving young people aged 12 to 14, plus another 19 confirmed or suspected instances of teenagers of between 15 and 18 working in potentially hazardous construction jobs, were reported. “[Child labour] is a real problem in Myanmar,” said Petter Furberg, Telenor’s country chief executive, adding: “Despite this, we have entered Myanmar with the same standards and requirements as in all the other countries where we are operating”. Telenor said it was educating all its suppliers, whilst the young people it identified were removed from the building sites. (Financial Times*)
Heinz recalls four batches of infant food in China
Food-processing giant H.J. Heinz Co has recalled four batches of infant food in eastern China after it was found to contain lead in excess of the allowable limit. The move comes after the Zhejiang Food and Drug Administration reported to have found “excessive amounts of lead” in the company’s AD Calcium Hi-Protein Cereal. Experts say exposure to lead is particularly dangerous for children, inhibiting intellectual and physical development. It can cause poor concentration, disruptive behaviour and even death when subjected to high levels. The problem has affected 1,472 boxes in Zhejiang which have been destroyed, in what the company describes as an “isolated regional withdrawal”. Chinese consumers are highly sensitive to safety concerns relating to infant products after a 2008 scandal involving melamine-contaminated baby milk powder. A soil survey in April showed that about a fifth of China’s farmland was contaminated by toxic heavy metals and chemicals. Heinz company spokesman, Michael Mullen said: “Extensive testing confirmed that no other Heinz baby food varieties are affected”. (Reuters)
Consumers
Sharing economy poised to hit £9 billion in the UK by 2025
The ‘sharing economy’ is set to grow 18-fold over the next decade, as resource efficient peer-to-peer business models, such as those pioneered by AirBnB and Zipcar, are set for rapid growth. According to a new study from PwC, the market could be worth £9 billion a year by 2025. Sharing sectors include; finance, online staffing, accommodation, car sharing and music/video streaming. “The sharing economy is a result of long-term megatrends colliding together, driven mainly by advances in technology, resource scarcity and social change”, said Robert Vaughan, an economist at PwC. Sharing economy business models have been broadly welcomed by green groups as they can drastically reduce demand for new products, leading to increased resource efficiency. Car club pioneer Zipcar are helping to curb car ownership, whilst accommodation sharing site AirBnB calculated its model helped avoid 350,000 tonnes of carbon emissions across Europe in 2013. John Hawksworth, chief economist at PwC, said: “We think this model could spread to other sectors such as energy, telecoms and retailing”. (Business Green)
Technology & Innovation
Veolia seeks to turn rubbish dump into solar farm
Waste management firm Veolia and REG Solarpower have teamed up in a bid to turn a disused UK quarry and landfill site into a giant solar farm. The companies plan to install a 38MW solar array at the landfill site in Essex, as part of its efforts to restore the land. Any revenues from the project would be used to help fund the upkeep of the site and Veolia’s local activities, the company said. The planned plant would be expected to produce enough power for more than 8,000 homes per year, helping to cut carbon emissions by 15,000 tonnes in the process. “The proposal will make an important contribution to addressing the risks posed by climate change to Thurrock where the impacts are likely to be relatively pronounced,” the companies said in a statement. “It will also help with energy security by providing an alternative to declining reserves and the increasingly volatile costs associated with fossil fuels and the growing global demand for energy”. (Business Green)
Policy & Research
WEF blueprint defines the corporate sustainability spectrum
The World Economic Forum (WEF) has released a White Paper on business sustainability to deepen understanding of its breadth and potential impacts. Within the paper, the WEF’s network of global agenda councils – comprising some 1,500 thought leaders from across academia, business, government and society – have published joint statements relating to various aspects of sustainability, from climate change through supply chain logistics to human rights. “Many companies have embarked on a journey towards net positive impacts… By taking this step, companies discover and capture opportunities to reduce costs, minimise risks and increase resilience,” the paper states. It adds that this success may encourage politicians to promote policies that grow the economy in a green, low-carbon and sustainable manner. The impact of globalisation meanwhile has led to an outsourcing of production by Western manufacturers and the consequent industrialisation of developing countries. The report highlights companies “duty to ensure that they are fully aware of their suppliers’ environmental practices and working conditions, and take steps to comply with a globally acceptable standard”. (Edie)
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