Report: Developing countries lose 10% of GDP through illicit financial flows and aggressive tax avoidance
A report published by the European Network on Debt and Development (Eurodad) says that “lost resources”, money that should have been invested but instead left the country, accounted for more than 10% of gross domestic product (GDP) for developing countries since the 2008 financial crash. “When you compare these lost resources to the size of the economies, it’s a huge proportion of their income that they’re losing.” said Jesse Griffiths, director of Eurodad and the report’s author. The largest losses were illicit financial flows, which accounted for $634 billion in 2011. Griffiths said this encompassed illegal activities, but did not include aggressive tax avoidance, suggesting the real figure could be higher. “There’s a huge amount that isn’t technically illegal but is hugely damaging,” he said, referring to recent revelations about Luxembourg’s tax deals for large corporations. Eurodad is pushing for greater transparency, international cooperation and an end to tax evasion and aggressive tax avoidance. (Guardian)
Campaigns
LEGO turns its attention to girls with call to #KeepBuilding
LEGO has aimed to deflect years of criticism with a new TV ad that focuses on the imaginative powers of play in young girls and a call for them to #KeepBuilding. LEGO, alongside other toy brands, has been criticised by groups such as the Let Toys Be Toys campaign, not only over its infrequent marketing toward girls but also a general lack of female characters, aside from those dressed in pink and focused on appearance and beauty. The pressure previously led the brand to embrace a crowd-sourced effort to get more non-traditional female characters into its play sets. But with its new ad, LEGO has shown a more inclusive stance in recognising the potential of this demographic. A young girl is shown at play: among her creative activities (using LEGO) are building and flying a helicopter, making a maze for her hamster and putting on a play for her parents starring a homemade cast of characters. (Sustainable Brands)
Strategy
Diageo sets new responsible drinking, social and environmental goals for 2020
Global alcoholic beverage company Diageo has announced 20 new sustainability and responsibility targets in three core areas to be achieved by 2020: leadership in alcohol in society; building thriving communities; and reducing environmental impact. Diageo has committed to creating one million “ambassadors” for responsible drinking, who will go on to become advocates for a responsible and positive role for alcohol in society long after they have taken part in a Diageo initiative. Meanwhile, the company aims to develop further partnerships with local farmers and agricultural communities to enable more sustainable supply chains and raw material sourcing, and to better manage water stewardship and carbon emissions across its supply chain. Diageo says the targets focus on the areas of greatest material impact to its business and represent an evolution of its approach to better measure and evaluate the tangible difference its programmes make to people’s lives. (Sustainable Brands)
Environment
China’s largest coal power plant violating air pollution levels every week
China’s largest coal-fired power plant, Waigaoqiao, has been violating China’s national standards for nitrogen oxides every week since new standards came into force in July, according to researchers at Greenpeace East Asia. The plant has been emitting nitrogen oxides in excess of emission standards used by the local environmental protection bureau 18% of the time. Research by Greenpeace also shows that the local regulator is not yet using the national standards on nitrogen oxides, and if it were the plant would be in violation almost all of the time. Lauri Myllyvirta, a senior global coal campaigner with Greenpeace, said: “the systematic violations, in a mega power plant in the middle of China’s most important economic centre and the failure by the regulator to effectively intervene illustrate the challenge that China faces in controlling emissions from its massive coal industry”. (Guardian)
Diversity
Six environmental NGOs pledge to go public on diversity
A number of prominent North American environmental groups have long admitted that the movement needs diversity in its representation. But until recently there hasn’t been much of a global roadmap on how to attain that goal. Tracking diversity numbers has largely been left up to organisations with little public transparency. However, six of the world’s largest environmental organisations: The Sierra Club, NRDC, Audubon Society, Environmental Defense Fund, Resources Media and EarthJustice have now pledged to release their diversity numbers by February 2015. The announcement was made by Green 2.0 at the Breaking the Green Ceiling forum. When polled on whether there should be mechanisms set up to increase the numbers of minorities and low-income residents in activities and organizational boards: 74 percent of managers agreed that “it should be done.” Fifty percent said they would be “likely or very likely to support”. (Triple Pundit)
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