Nespresso to invest in $550 million sustainability program
Nespresso plans to spend $550 million in the next six years in an effort to improve the environmental and social impact of Europe’s biggest single-serve coffee brand. The Nestlé division’s farmer welfare and environmental programme will include investment in South Sudan, Ethiopia and Kenya. The company also plans to increase the recycling of Nespresso capsules, reduce its carbon footprint by 10 percent and become carbon-neutral. Nespresso says the investment will secure access to the best quality coffee produce in the world. “This approach also allows us to innovate thanks to the direct relationships we build with farmers”, said company CEO Jean-Marc Duvoisin. The commitment follows recent trends as large international agribusinesses and food companies increase their involvement with smallholder growers. Ray Jordan, chief executive of Self Help Africa, which helps farming communities negotiate with international businesses, said: “Maybe before it was lip service about corporate social responsibility, but the reality is that the needs of the big international companies and small agricultural operations are converging”. (Bloomberg; Financial Times*)
Regulation
Indian regulations drive demand for environment lawyers
Indian businesses are increasingly seeking the services of environment lawyers as the government has become more stringent about implementing environmental regulations. The National Green Tribunal (NGT) was set up in 2010 to challenge orders passed by the ministry of environment. Data from the NGT shows that 35 percent of cases between May 2011 and July 2014 related to environment impact assessment studies, while 31 percent related to pollution. As the government has cracked down on poor environmental compliance, Indian companies have faced cancellations of projects worth thousands of crore of rupees. Niche law firms such as Trust Legal and Enviro Legal Defence, which deal with environment and health litigation, have supported an increasing number of businesses in recent years. “Companies are increasingly doing a pre-feasibility environment audit with the help of social scientists, local communities and environment lawyers”, said Sudhir Mishra, founder of Trust Legal. (Eco-Business)
Tyson Foods’ Missouri problem risks millions in government contracts
Tyson Foods, one of the world’s largest meat producers, could lose around $500 million in government contracts if found guilty in an ongoing criminal probe by the US Environmental Protection Agency, following the recent release of toxic chemicals at a plant in Monett, Missouri. Wastewater tainted with Aliment, an additive used in chicken feed, was sent into the city’s wastewater plant, leading to the deaths of an estimated 100,000 fish, according to lawsuits filed in the case. Worth Sparkman, a corporate spokesman for Tyson Foods, said: “We’re cooperating with the Environmental Protection Agency in its investigation… Unfortunate events like this bring increased awareness to the environmental risks we manage”. Campaign group Food and Water Watch says the mishap is “nothing new”, adding that sanctions are not stringent enough. “[Tyson] will find a scapegoat to blame, pay the fines and move on. I will be shocked if they actually lose their government contracts given their influential lobby”, said Scott Edwards, a litigator for the Food & Water Justice arm. (The City Wire)
Tax
Burger King faces tax controversy after $11bn Tim Hortons purchase
Burger King has acquired the Canadian coffee-and-doughnut chain Tim Hortons for about $11 billion, in a deal that has re-ignited the controversy over American companies moving their headquarters abroad to secure lower tax rates. As part of the acquisition, the corporate headquarters of the new company will be in Canada, a move that may help Burger King lower its tax burden. The corporate tax rate in Ontario is 26.5%, more favourable than the 35% levied in the US. Burger King insisted the deal was not about tax. “We don’t expect our tax rate to change materially… This transaction is not about tax rate, it’s about growth”, said Daniel Schwartz, CEO of Burger King. The announcement met an immediate backlash on social media, however. Bernie Sanders, the independent junior senator from Vermont, wrote: “the American people are sick and tired of large corporations not paying their fair share of taxes”. Democratic Ohio senator, Sherrod Brown added: “Burger King’s decision to abandon the United States means consumers should turn to Wendy’s Old Fashioned Hamburgers or White Castle sliders”. (Guardian)
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