European sustainable investment growth outpacing the mainstream
The latest study by the European Sustainable Investment Forum (Eurosif) suggests that the rate of growth in sustainable and responsible investment (SRI) is outpacing that of mainstream investment. Eurosif found that sustainable investment in Europe has grown by almost 23 percent between 2011 and 2013, whilst mainstream growth stood at 21.7 percent. Impact investment was the fastest growing sector, rising by 132 percent with an estimated value of €20 billion. Investment using exclusion criteria – which take out of consideration certain industries considered unethical, such as fossil fuels, pornography or tobacco – grew by 91 percent. Eurosif’s executive director, Francois Passant, said: “The continuous growth of SRI practices in Europe signals a positive change in attitudes toward stewardship and the materiality of Environmental, Social and Governance matters. He added: “Discussions are shifting from whether SRI makes sense or not from a financial return standpoint, to how its tangible impacts can be measured”. (Blue and Green Tomorrow)
Glasgow University becomes first to divest from fossil fuel in Europe
The University of Glasgow has become the first scholastic institution in Europe to pledge to divest from the fossil fuel industry. The announcement follows a year of campaigning by more than 1,300 students led by the Glasgow Climate Action Society. Full divestment will mean the reallocation of around £18 million of current investments over a 10-year period. Glasgow joins 13 American universities and many other institutions who together have pledged to withdraw more than $50 billion in assets from fossil fuels. Campaigners say that, so far, 181 institutions and 656 individuals have agreed to withdraw their money. Last month, the heirs to the Rockefeller fortune announced they planned to pull their funds from fossil fuels. Over the past 12 months, student campaigning organisation People & Planet has launched more than 50 Fossil Free campaigns involving 15,000 students across the UK. People & Planet member, Andrew Taylor, added: “Divestment now has a firm foothold in the UK. Student and academic pressure to get out of fossil fuels is building across the sector”. (Edie; BBC)
Supply Chain
World’s largest retailers take stand against forced labour in Uzbek cotton harvesting
Some of the world’s largest retailers including Target, Walmart, Marks & Spencer, IKEA, and H&M, have signed a pledge in an attempt to reduce forced labour from Uzbekistan’s cotton industry. The most recent of the multinational retailers to sign the Responsible Sourcing Network (RSN)’s Cotton Pledge is Tesco, who banned the use of Uzbek cotton in their supply chain in 2007. “Eliminating cotton picked with forced labour is a critical step in the responsible sourcing process”, said Giles Bolton, Responsible Sourcing Director for Tesco. During the Uzbek cotton harvest, over four million Uzbek citizens are forced to pick cotton under threat of penalty. Everyone from nurses, to civil servants, to teachers are reportedly forced to leave their hospitals and classrooms to pick cotton or pay hefty fines. RSN director, Patricia Jurewicz, commended the retailers’ commitments. “Having the largest retailers in the world standing united shows that they are committed to doing their part to end forced labour, both of children and adults”, she added. (Sustainable Brands)
Strategy
Arcadia Power becomes first nationwide clean energy B Corporation
US clean energy company Arcadia Power has become the first nationwide clean energy company to be certified as a ‘B Corporation’, after meeting the rigorous social, environmental and legal standards set by B Lab. Driven by a mission to democratise clean energy, Arcadia Power allows businesses and individuals to upgrade their offices or homes to 100 percent clean energy, for just a 1.5 cents per kWh premium. Their proprietary software connects online utility accounts with a clean energy purchasing platform, imports all the energy data, and displays it in a web dashboard. To become a certified B Corporation, companies must meet rigorous standards of social and environmental performance; legally expand their corporate responsibilities to include consideration of stakeholder interests; and build collective voice through the B Corporation brand. “We all have to step up to combat climate change and build a better future, and B Corporations are helping lead the way”, said Arcadia Power CEO and co-founder, Kiran Bhatraju. (CSR Wire)
International Development
Obama’s Power Africa project awards Tanzanian firms
Four Tanzanian firms have each been awarded at least US$ 100,000 each to implement power projects in underserved rural areas. The companies – Lung’ali Natural Resources, Space Engineering, Jamii Power, and L’s Solution – are winners of the ‘Power Africa Off-Grid Energy Challenge’ that is part of US President Barack Obama’s larger Power Africa initiative. The competition is aimed at increasing electricity generation and access especially on off-grid or micro-grid solutions so as to serve rural populations. “In today’s Africa, we need new approaches to bringing power to every community, particularly reaching those that are underserved by conventional grid-based systems”, said US Ambassador to Tanzania, Mark Childress. Director General of Tanzania Electric Supply Company (TANESCO), Felichesmi Mramba, added: “I commend efforts made by the government of America in extending this help that will allow rural communities access to reliable power supply and thus support their social and economic development”. (IPP Media)
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