Merkel and Hollande pledge an end to fossil fuel pollution
Angela Merkel and François Hollande have pledged to strive for an end to fossil fuel pollution as part of a “profound transformation” of the global economy this century. The leaders of the EU’s two largest economies said they had “firmly decided to take all efforts to reach an ambitious, comprehensive and binding” global climate deal at a UN meeting of almost 200 countries in Paris in December. “We will strive to decarbonise fully the global economy over the course of this century,” they said in a joint statement in Berlin, after talks with other country representatives ahead of the Paris summit. World leaders have been reluctant until now to spell out so clearly the idea of including a goal to end carbon emissions in the Paris agreement, a move some analysts say could mark a turning point. “We have to make a complete shift to a carbon-free economy,” Ms Merkel said. (FT*)
Responsible Investment
Report: Asset managers often side with management on controversial issues
Some of the world’s best-known asset managers often side with company management on controversial votes even when there is a strong case for challenging the company’s position, claims a report by responsible investment charity ShareAction. The report examined the voting records of the UK’s 33 largest asset managers at company AGMs in 2014, including those of AstraZeneca, Reckitt Benckiser and ExxonMobil. ShareAction says there is a disconnect between asset managers’ commitments to the UK Stewardship Code and UN Principles for Responsible Investment, and their actual voting record in 2014. Catherine Howarth, ShareAction’s CEO, commented that “investors should on the whole support company management. However, they should be willing to vote against management’s voting recommendations to protect the long-term interests of their clients and their beneficiaries.” (Third Sector; ShareAction)
Climate change dominates Shell annual general meeting
Shell shareholders have voted through a resolution requiring it to test its business against international goals to limit climate change – but Britain’s biggest oil company faced a barrage of questions over its commitment to battle global warming. At its annual general meeting in The Hague, 98.9% of votes supported the call for Shell to report on whether its activities were compatible with a pledge by governments to limit global warming to a 2C rise. It includes a ban on corporate bonuses for activities that damage the climate and a requirement to invest in renewable energy. Several investors who backed the proposal praised Shell’s board for supporting the resolution, which was also passed last month at BP. But the annual meeting, which lasted four and a half hours, was dominated by shareholders casting doubt on Shell’s climate change credentials. (Guardian)
Corporate Reputation
Facing media storm, Thomas Cook expresses regret for death of children
Travel firm Thomas Cook has expressed regret for the deaths of two British children on one of its holidays in 2006, seeking to end damaging headlines over its handling of the case. Social media users have called for a boycott of the company following reports that the parents of the children had not received an apology and that the company had received more in compensation for the children’s deaths than their parents. “I feel deeply sorry about the tragic death of these two children,” Thomas Cook CEO Peter Fankhauser said. “In the past it is obvious that there have been a lot of mistakes in regards to managing the relationship with this family”. The media storm over the children’s deaths has threatened to overshadow Thomas Cook’s otherwise positive trading update. (Reuters; The Independent)
International Development
Chinese companies accused of West African fish pillage
Chinese fishing companies are engaged in systematic “pillaging” of west African fisheries on a huge scale, according to a new report from Greenpeace, which also accuses the companies of taking advantage of weak and chaotic governance resulting from last year’s Ebola outbreak. A two-year investigation by the environmental group found that four Chinese fishing companies, including state-owned China National Fisheries Corporation, carried out persistent “illegal, unreported and unregulated fishing activities and gross tonnage fraud” in west Africa. These include 16 illegal fishing activities by 12 Chinese vessels in Guinea’s exclusive economic zone in October and November last year, while the Ebola outbreak was raging. The number of Chinese fishing vessels in Africa has grown from just 13 in 1985 to 462 in 2013, accounting for a fifth of China’s entire long-range fishing fleet. (FT*)
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