Norway’s sovereign wealth fund accused of ‘pretend divestment’
The Norwegian Government Pension Fund, the world’s richest sovereign wealth fund has sunk more money into coal, just three months after a high-profile pledge to dump fossil fuels as part of its commitment to responsible investing, according to financial analysis by three environmental groups. While the Fund did withdraw from 32 companies last year for environment and climate reasons, it did not reduce its overall holdings in the industry, which increased by 3 billion Norwegian kroner. The Fund remains one of the biggest single investors in coal mining companies and coal-based utilities. On Wednesday, a parliamentary committee called on the Fund to quit coal, after an online petition garnered nearly 50,000 signatures. The committee cited financial reasons for divestment – coal stocks have plunged more than 70% in value over the past five years. (Guardian)
World Bank sets date for $25 million UN CO2 credit auction
The World Bank will on July 15 hold a first of its kind auction worth $25 million, for UN-backed carbon credits from projects designed to cut methane emissions, the bank announced on Thursday. The Pilot Auction Facility will offer tradable put options, giving project owners the right to sell credits to the bank’s Methane and Climate Change Fund at a set price. The auction comes at a time when investment in carbon-cutting investments under UN programmes has slowed as countries debate the design of a new global climate pact to come into force in 2020. Germany, Sweden, Switzerland and the United States have contributed around $50 million to the fund, which is hoping to raise $100 million to help finance schemes to cut greenhouse gas emissions. To be eligible for the auction projects need to be registered under the UN’s Clean Development Mechanism and meet the Bank’s own environmental health and safety social criteria. (Reuters)
Corporate Reputation
Unilever, Patagonia cement their positions as the world’s most sustainable brands, says new report
Unileverand Patagonia have cemented their position as the world’s most sustainable brands, topping the list of sustainability leaders in a new report. The 2015 Sustainability Leaders Report, produced by research consultancy GlobeScan and think tank SustainAbility, asked 816 sustainability experts in 82 countries which company they thought best integrated sustainability into its business strategy. Unilever drew top honours for the fifth year in a row, while Patagonia again ranked second. The two companies were followed, in order, by Interface, Marks and Spencer, Natura, Ikea and Nestle. Other top performers included GE, Nike, Coca-Cola and BASF. Two companies, Walmart and Puma, fell from last year’s top 10 list. A major trend reflected in the report is a growing divide between sustainability experts on the relative importance of a clear, well-defined statement of corporate values versus a business model that integrates sustainability. (Guardian)
Circular Economy
EU asks for public advice on circular economy
The European Commission has launched a 12-week public consultation to help inform its upcoming circular economy action plan, to be presented by the end of 2015. Ideas generated by the consultation will feed into a new strategy which aims to transform Europe into a “competitive resource-efficient economy”. The original proposal for a Circular Economy Package was scrapped in December 2014, amid claims it only addressed ‘half the circle’. The upcoming package will reportedly look beyond waste policy and address the full product lifecycle, including actions on intelligent product design, reuse and repair of products, recycling, sustainable consumption, waste policy, recycling levels, stronger markets for secondary raw materials and specific sectorial measures. (Edie)
Tax
BBC uncovers ‘aggressive’ tax avoidance scheme
Anderson Group, one of the UK recruitment industry’s most high-profile companies, is promoting an “aggressive” tax avoidance scheme which experts are calling “abusive”. The BBC secretly recorded Anderson Group’s sales manager, Ian Moran, promoting the scheme to a recruitment agency. He suggested that if they were to set up more than 100 limited companies with a couple of workers, each company could then claim the £2,000 Employment Allowance for small businesses. Moran suggested the agency, which has no intention of using the scheme, might like to spend the £300,000 on Bentleys and ski chalets. The BBC found on the Companies House website more than two thousand limited companies created by those behind the tax avoidance scheme. Anderson Group says that all of its services are fully compliant with UK tax laws, and denied that it was promoting the scheme. The government has promised to “pursue users and promoters” of the scheme. (BBC)
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