Activist groups challenging Signet to show its supply chain some love this Valentine’s Day
Signet, the world’s largest jewellery retailer, is being challenged by social and environmental groups across the world to demand that its major diamond and gold supplier, Rio Tinto, clean up its act this Valentine’s Day. International activist groups including IndustriALLGlobal Union, London MiningNetwork, Earthworks and LabourStart are teaming up to put pressure on Signet to demand that Rio Tinto ensures its practices respect the environment, worker rights and indigenous peoples. London Mining Network coordinator Richard Solly said: “Rio Tinto has a long history of violating indigenous peoples’ land rights, dividing communities, polluting land and water, and attacking unions.” The Responsible Jewellery Council (RJC) has provided certification for Rio Tinto for its operations, however Earthworks has called the integrity of the accrediting organisation into question: the RJC is governed by industrial players, excluding labour communities and civil society. (Sustainable Brands)
Corporate Reputation
Qualcomm to pay record $975 million in China antitrust case
US chipmaker Qualcomm will pay $975 million to Chinese authorities to end a 14 month anti-trust investigation into its patent licensing practices. The fine is the largest in China’s corporate history and will require the firm to its lower royalty rates on patents used in China’s mobile phone market. Qualcomm will not contest the ruling that it violated China’s anti-monopoly law. The firm, which is the biggest supplier of chips used in smartphones, will now charge royalties based on 65% of the selling price of phones in China, instead of on the entire price. China’s expanding high-speed 4G network is driving demand in the world’s largest smartphone market. Chief executive Steve Mollenkopf said he was pleased the resolution had removed “uncertainty” surroundings its business in China. (BBC News; Financial Times*)
Tax
Cutting mining and aviation tax breaks could save Australian Government £2.65 billion a year
The Australian government could save£ 2.65 billion a year by scaling back tax credits for the mining and aviation sectors, rather than putting the budgetary burden on families, the Australian Conservation Foundation (ACF) said. The ACF’s chief executive, Kelly O’Shanassy, said: “The last federal budget was widely seen as unfair and unwise” and that the credits allow “companies like BHP Billiton and Rio Tinto to pay virtually no tax on the diesel they use, while car drivers and small businesses are taxed 20p on every litre of fuel they buy”. The ACF has made a submission to the government on how it can cut spending in the upcoming budget. It says the government could save over £1.74 billion a year by reforming its fuel tax credit scheme. Abolishing tax breaks on aviation fuel could save around £660 million and scrapping the special treatment of assets in the oil and gas sector could save a further £250 million. (The Guardian)
Technology and Innovation
Straw eco homes spark rush of interest from prospective buyers
UK estate agents say they expect seven new eco houses made from straw to be “snapped up” when they go on the market in Bristol later this month. The new homes promise to cut fuel bills for residents by up to 90 per cent by replacing bricks with a new factory-built straw panel. The homes are the result of an engineering research project led by the University of Bath and specialist architectural firm ModCell. Professor Pete Walker, who led the project to develop and test the construction method, said: “the construction sector must reduce its energy consumption by 50% and its carbon emissions by 80% by 2050, so radical changes are needed to the way we approach house building.” The technology has received BM Trada’s Q mark certification, which means housing developers and house buyers can now insure their properties and secure mortgages against homes, schools, and offices built using the ModCell straw panels. (BusinessGreen; The Guardian)
Report: Japanese automakers leading the world in developing low emissions models
Japanese automakers are leading the world in developing low emissions models and are consequently the manufacturers least likely to be hit by penalties for failing to meet tightening government auto emissions targets. That is the conclusion of a new report from investor-backed group CDP, which asks firms to publicly disclose details about how they are adapting to environmental risks, in order to help inform investment decisions. The report reveals that three of the top five companies are Japanese — Nissan, Toyota and Mazda — while France’s Renault comes in third and Germany’s Daimler ranks joint fifth. The report also predicts that some of the worst performing companies could face penalties if they fail to accelerate efforts to curb vehicle emissions. For example, Ford, General Motors and Fiat Chrysler Automobiles risk significant penalties in both the E.U. and the U.S., CDP argues. (GreenBiz)
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