97 percent of companies fail to provide data on key sustainability indicators
Only 128 of the 4,609 largest companies listed on the world’s stock exchanges disclose the most basic information on how they meet their responsibilities to society, according to a new report. The study by Canadian investment advisory firm Corporate Knights Capital, says 97 percent of companies are failing to provide data on employee turnover, energy, greenhouse gas emissions (GHGs), injury rate, pay equity, waste and water. More than 60 percent of companies currently fail to disclose their GHGs, three quarters are not transparent about their water consumption and 88 percent do not divulge their employee turnover rate. Paul Druckman, who heads up the International Integrated Reporting Council, said: “We know that reporting influences behaviour, so corporate reporting reform should encourage behaviour that focuses on longer-term value creation in order to achieve financial stability and sustainability”. Druckman added that while progress has been slow, the report does highlight the progress being made by stock exchanges in emerging markets, where the disclosure gap between themselves and listed companies trading in developed markets is narrowing. (Guardian)
Campaigns
Employers have an exaggerated fear of employing ex-offenders, says BITC
Business in the Community (BITC) is calling on more UK employers to remove the criminal record disclosure ‘tick box’ from application forms, as part of its Ban the Box campaign. Since its launch a year ago, 25 employers – including large construction firm Carillion and law-firm Freshfields – have removed the criminal record tick box from their recruitment process, enabling ex-offenders to compete fairly for roles based on an assessment of their skills first. Yet BITC says too few employers are taking action to make their workforces accessible to the 1 in 5 unemployed jobseekers with a criminal conviction. “Too many companies have an exaggerated fear of recruiting people with criminal convictions and a misconception that employing them is risky business”, said Catherine Sermon, Employment Director at the charity. “Removing the tick box doesn’t remove disclosure. It simply moves asking about convictions to later in the recruitment process – assessing candidates on their suitability, skills and ability first”. (BITC)
Supply Chain
McDonald’s allays meat rumours by inviting cameras into a burger factory
McDonald’s has invited an external camera crew inside its factories for the first time to show consumers exactly what goes into their burgers. The fast food group welcomed a crew from TV show Good Morning America (GMA) into its California plant as it launched its new ‘Our Food. Your Questions’ series. McDonald’s is hoping the campaign will dispel the unappetising rumours about ‘pink slime’, worm meat and other burger fillers that have long haunted the chain. In the video, the chain makes clear that so-called ‘pink slime’, or lean textured beef trimmings treated with ammonia, has not been used in McDonald’s burgers since 2011. The company did however confess to sourcing its beef from cattle that are treated with growth hormones, dispelling the action as “a common practice in the US that ranchers use to promote growth”. The chain insists its new turn towards transparency is not linked to business performance. Instead, chief brand manager, Kevin Newell, told GMA the decision is linked to “making sure our customers truly know the story about McDonald’s food”. (Independent)
The Phone Co-op debuts Fairphone ‘ethical’ smartphone
The Fairphone, the first smartphone to be marketed as being free of “conflict minerals”, has arrived in the UK this week, after The Phone Co-op inked an exclusive distribution deal for the new technology. “We are delighted that our partnership with Fairphone means we are able to build on our reputation as the leading ethical provider of telecoms”, said Vivian Woodell, chief executive of The Phone Co-op, which is the UK’s only consumer-owned phone and broadband operator. The development of the Fairphone came as a response to concerns that mainstream smartphones are often reliant on minerals sourced from conflict zones and can be manufactured in factories that fail to meet high labour and environmental standards. The tin and tantalum in the Fairphone are sourced through the Conflict Free Tin and Solutions for Hope sustainable supply chain initiatives, and the phone is manufactured under an innovative contract that funds a worker-controlled welfare fund for investment in the local community. “Fairphone’s initiative raises awareness of important issues about the supply chain for products we use every day”, added Woodell. (Business Green)
Strategy
82 percent of ‘Generation Fairtrade’ teens want companies to behave responsibly
Young Britons who have grown up in the era of a flourishing fairtrade market are highly sensitive to global issues and want to see businesses taking responsible action, according to a new analysis from the Fairtrade Foundation. The survey found that 82 percent of UK teens think companies need to act more responsibly – taking action to end poverty, inequality and climate change – while just 45 percent say they trust businesses to do so. Caroline Holme, director at GlobeScan, who carried out the survey, said: “Young people are just as switched onto global issues as older generations and we see a similar gap in perceptions between trust and expectations of companies”. The study also found that almost all the youngsters surveyed (97 percent) said they are familiar with the fairtrade mark and system. Michael Gidney, chief executive of the Fairtrade Foundation, added: “’Generation Fairtrade’ are aware that by taking a simple action such as buying fairtrade or signing an online petition, they can persuade businesses and governments to act more ethically”. (Blue and Green Tomorrow)
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