Child labour scandal at another Samsung supplier factory in China
Three weeks after Samsung reduced trade with a supplier accused of child labour, the US non-profit China Labor Watch (CLW) has found evidence of children working at another supplier. CLW claims to have found at least 10 children working at the HEG Electronics factory, which supplies both Samsung and Lenovo. HEG is also accused of exploitative conditions, including excessive shifts, lack of safety training, no overtime pay and workers not receiving due pay. HEG Electronics has denied the claims, and Samsung insists it did not find any evidence of child labour during its own investigations. This is the fourth case of alleged child labour in a Samsung supplier factory in the last two years. Earlier this month, the company found evidence at the Dongguan Shinyang factory and announced it would “further strengthen its monitoring process of its suppliers to prevent such a case from recurring”. (Blue and Green Tomorrow)
Smallholder cotton farmers urged to help reduce water footprint
More support is needed for smallholder cotton farmers in the developing world as they grapple with the effects of water scarcity which could put the global cotton industry at serious risk. The social enterprise Cotton Connect is calling for the cotton supply chain to increase farmer training to increase yields and reduce the water footprint in cotton growing regions such as India, Pakistan and West Africa. Cotton Connect has today released a report which asks big global brands to: map and ensure greater transparency and closer relationships across the supply chain; support farmer training programmes for basic interventions to reduce water footprints; collaborate and help to fund initiatives to help drive cotton supply chain sustainability at scale. Some brands have already taken action, like John Lewis which has launched a three-year farmer training programme with CottonConnect. In total, 1,500 farmers will be trained, giving the John Lewis buying team a full understanding of exactly where their cotton comes from. (Edie)
Burger King urged to use merger to introduce sustainable palm oil policies
Burger King‘s newly-announced $11bn acquisition of Canadian coffee and doughnuts chain Tim Horton already faced criticism over its tax arrangements, but now the deal is also taking flak over the two companies’ environmental track record. The Union of Concerned Scientists (UCS) this week called on both companies to use the planned merger as an opportunity to re-evaluate palm oil policies, which saw Burger King ranked at the bottom of the NGO’s recent league table on companies’ sustainable palm oil policies. Lael Goodman, an analyst with UCS’ Tropical Forests and Climate Initiative, said that both Burger King and Tim Hortons had an “appalling track records on palm oil”. On a positive note, she added that “A strong palm oil commitment could sow some positive headlines for the newly merged company and improve the global climate”. (Business Green)
Policy & Research
WWF launches guide to help Singapore banks implement ESG practice
The World Wide Fund for Nature (WWF) has released a report providing advice to help financial advisors and lenders in Singapore implement socially responsible banking practices and develop sustainable solutions to the risks of climate change and resource scarcity. The guide, The ESG Integration for Banks: A Guide to Starting Implementation says, “To ensure global long-term financial stability and economic development, the banking sector needs to significantly change its attitudes and actions to promote more responsible and sustainable business practices.” It emphasises the importance of sustainable and responsible investment (SRI), following recent analysis indicating that ethical investment is reaching the mainstream and is set to continue reaping good returns. September 9 will see a series of WWF workshops held by the Singapore Exchange (SGX) to discuss key environmental issues facing the banking sector, and explain how the guide can help implement environmental, social and governance (ESG) risk management. (Blue and Green Tomorrow)
Corporate Reputation
Shell submits new plan for Arctic oil drilling
Royal Dutch Shell has submitted a plan to the US federal government to try once again to explore for oil in the Alaskan Arctic, following years of legal and logistical setbacks as well as dogged opposition from environmentalists. A Shell spokesman, Curtis Smith, said that the new plan had fortified safety features, including new tugboats, an extra helicopter, additional offshore supply vessels and better management of contractors. The company announced in January that it would not make an effort to drill in Alaska this summer, given the legal obstacles. But in recent weeks, Shell has shown renewed interest in its Alaska efforts by signing an agreement with several Alaska Native corporations to share profits from offshore drilling. Shell emphasized that it had not made a final decision on whether to drill next summer. But it said that the filing with the Interior Department preserved its options. (NY Times)
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