SSE becomes first FTSE 100 company to be awarded Fair Tax Mark
UK energy company SSE has become the first FTSE 100 business to be awarded the Fair Tax Mark, a scheme that aims to hold companies to account over their tax affairs. SSE, which has nine million customers, has published retrospective accounts showing how much corporation tax it pays alongside pledges to stay away from tax havens and aggressive tax avoidance schemes. Last year SSE was fined £10.5m by the regulator Ofgem for misleading customers with false statements about rivals gas and electricity charges and inaccurate information about its own tariffs. The group said its new tax policy will mean rejecting the use of tax avoidance schemes and the use of tax havens to reduce its tax liabilities. It has also become the first UK company to publish a country-by-country report that complies with new OECD guidelines, which call on firms to supply details of their tax payments to their respective tax authorities. Richard Murphy, Director of the Fair Tax Mark, welcomed the move, and predicted that other companies will follow. (Guardian)
Lax emissions reporting makes green firms hard to find in emerging markets
Global investors are increasingly seeking green assets as they become more concerned about the potential financial cost of climate change, but inadequate disclosure standards in emerging markets make such assets difficult to find. Companies reporting emissions and assessing climate-related risk will attract overseas investment, finance executives and asset managers said at the Reuters Global Climate Change Summit last week. Yet, despite the difficult barriers to investing in low-carbon projects, the demand for green investments in emerging markets remains high. The Bombay Stock Exchange (BSE) is trying to tap that demand with an exchange-traded fund tracking its S&P Carbonex – a share index that places greater emphasis on greener companies. As BSE CEO Ashishkumar Chauhan said at the Reuters summit in Mumbai, “[Investors] look at the annual reports in more detail, they also have some influence over company decisions, so they tend to influence companies in a more ethical, environmental and socially acceptable direction.” (Eco-Business)
Strategy
World’s leading alcohol producers launch alliance for responsible drinking
The International Centre for Alcohol Policies and the Global Alcohol Producers Group, which together include some of the world’s largest alcohol producers, have launched a new organisation called the International Alliance for Responsible Drinking (IARD). Central to IARD’s mission will be to help reduce harmful drinking and promote responsible drinking through research, programs and advocacy around the world. The organization will promote effective policies and programs, as well as contribute to an informed debate by providing balanced and evidence-based science. The formation of IARD is an extension of member companies’ work over the last two decades to build the evidence base, inform decision-makers and advance hands-on programs to reduce harmful drinking. The organisation will advocate for the most effective policies and programmes, communicate the views and perspectives of member companies and serve as a single global point of contact for international and national agencies, member states, NGOs and other stakeholders. (Sustainable Brands)
Responsible Investment
UK positive investment market grows to £3.25 billion
The UK’s positive investment market has grown by a third since early 2012, with 1.75 million investors and savers directly supporting businesses that create social and environmental impact, according to a new report. Make Money Do Good, launched by the online positive investment marketplace Ethex, reveals that the market is now worth £3.25 billion. Savers make up most of the record-breaking sum, with £2.1 billion saved in credit unions and £862 million in ethical banks and building societies. Meanwhile, £249 million has been directly invested in community share offers, charities and social enterprises, as investors increasingly look towards local projects and businesses. Community-owned renewable energy schemes have proved the most popular investment, with 56 projects raising £29 million. The report also notes that younger people are investing more, while individual investors are increasingly looking to build a diverse portfolio. Some 9% of the investors who use Ethex are now aged between 20-29, up from 3% in 2013. (Blue and Green Tomorrow)
Inclusive Business
How partnerships can pay for business and rural workers
Czech footwear manufacturer Bata and CAREBangladesh have launched an innovative partnership aimed at finding a way around the challenge of local distribution. By turning enterprising villagers into sale agents, the partnership overcomes the problem of accessing consumers at the so-called Base of the Pyramid. Since 2005, the two organisations have been working together to recruit and train local women to sell Bata’s $1 flip-flops door to door. For every sale, the women receive between 10-15% commission. That translates to an average income of about $80 per month, more than double the country’s minimum wage. For the two partners, the alliance is mutually beneficial. Bata enjoys access into a new tranche of future consumers. Turnover remains small compared to Bata’s established markets, but sales are increasing at 120% per year, resulting in recognition for the Bata brand and customer loyalty. As for CARE, it points to the additional income and enhanced status enjoyed by the 3,000 or so women involved in the programme. To ensure long-term sustainability, the charity has created a stand-alone social enterprise to manage the whole process. (Guardian)
Image Source: “Alternative Energies’ by John R. / CC By SA 2.0
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