Pharmaceuticals companies risk a backlash similar to the one experienced by banks after the financial crisis if they fail to invest more in new antibiotics, according to the head of a UK government-backed commission. Jim O’Neill, former chief economist at Goldman Sachs, said drug companies would be blamed for the rising number of deaths from drug-resistant superbugs if they refused to contribute to global efforts to develop a new generation of anti-infective medicines. Drug companies have cut investment in antibiotic research in recent decades and focused instead on higher-margin products such as cancer drugs. Mr O’Neill said this reminded him of the way banks concentrated on exotic financial instruments before the 2008 crash, while neglecting their broader social responsibilities. The warning came as he unveiled a multi-billion dollar plan to revive antibiotic research and development — with industry expected to help finance the scheme. (Financial Times*)
White House and labour advocates praise move by Facebook for higher wages
Labour groups and the White House on Wednesday praised Facebook’s plan to require its contractors to pay workers at least $15 an hour and offer paid time off. Josh Earnest, the White House press secretary, said in a news briefing on Wednesday that Facebook thinks “it’s good for business, and the president thinks it’s good for business, too.” By making the change, Facebook joins some other well-known brands that have pushed higher wages. In April, both Walmart and McDonald’sraised their minimum pay, following criticism. Silicon Valley has faced a debate over inequality in recent years, with tech workers often paid handsomely while those who provide them with child care, gourmet meals and transportation services earn minimum wage. Some labor groups took some of the credit, saying the company’s move was partly a response to pressure from workers. (New York Times)
Environment
Apple leads the pack in Greenpeace’s 2015 clean tech update
Apple continues to be a leader in environmental initiatives among tech companies, according to a new report issued by Greenpeace. Among the top 13 tech companies listed, Apple is the only one to score 100 percent on the Clean Energy Index, which includes all of its planned data centre expansions. This past year, Apple has announced plans to build a new data HQ in Arizona, which will be powered by solar which Apple is helping bring on-line. The company also announced initiatives to expand its renewable energy plans to China , and revealed plans to build green data centres in both Ireland and Denmark back in February. Apple ranked above companies including Amazon, Facebook and Google as the only one to earn A grades across the board for transparency in its energy sources, commitment and policy around renewable energy, energy efficiency and migration, and renewable energy advocacy and deployment. (Techcrunch)
Governance
Only 60% of financial companies have board-level risk management discussions, research shows
Nearly half of the world’s biggest financial institutions are still not doing enough at board level to address risk management and bonuses, even as regulators clamp down. Despite a wave of new regulations around the world introduced in the wake of the financial crisis that focus on improving culture from the top down, just 60 per cent of boards have “open discussions” about their risk management, new research shows. Deloitte’s biennial risk survey surveyed 71 financial institutions with a total of $18 trillion of aggregate assets. Only half of respondents thought it was their risk management team’s responsibilities to assess pay against culture. Tougher regulations include new ‘qualitative assessments’ of risk management in the US, which are soon to be emulated in the UK. Meanwhile the UK, which has introduced a criminal offence of recklessly mismanaging a bank, has some of the toughest laws on remuneration in the world. (Financial Times*)
WWF: ASEAN banks and investors behind on environmental, social and governance standards
A WWF report finds an alarming gap between regional ASEAN financial institutions and the environmental, social and governance (ESG) standards adopted by their international counterparts. Moreover, WWF reports a similar shortfall exists between regional financial regulations on responsible lending guidelines and corporate sustainability disclosure requirements as compared to their counterparts in Brazil, China, South Africa and Hong Kong. The report argues strongly for regional financiers to act in their own long-term interests and adopt ESG practices with urgency, and calls for sustainable banking guidelines and more prescriptive sustainability disclosure requirements to be issued by regulatory authorities. The risks presented by commercial logging and plantations for palm oil and pulp are adopted as a central case in the report supporting the call to action. The industries contribute significantly to regional economic growth but are also linked to the destruction of globally important tropical forests and the annual haze blighting the region. (WWF)
COMMENTS