IKEA pledges 1 billion euros to help slow climate change
IKEA, the world’s biggest furniture retailer, plans to spend 1 billion euros on renewable energy and steps to help poor nations cope with climate change, the latest example of firms showing leadership in efforts to slow warming. Chief Executive Peter Agnefjall said the measures would “absolutely not” push up prices at the Swedish group’s stores. The investments will be “good for customers, good for the climate and good for IKEA too.” He said the plan was motivated by a desire to tackle climate change, rather than to court favourable publicity. “Getting that message out to the customers is secondary,” he said. IKEA, which had sales of 30 billion Euros last year, wants to generate all the energy used in its shops and factories from clean sources by 2020. To that end, it will invest 600 million euros on wind and solar power installations. (Reuters)
Consumers
Nestlé withdraws Maggi noodles in India after state ban and lead fears
Nestlé is withdrawing all of its Maggi noodles from sale across India after a food scare erupted when some states banned the product for excess levels of lead. Nestlé said “an environment of confusion for consumers” had resulted from the bans and insisted the noodles were safe. But after coming under fire in local media for reacting too little and too late the group said it would recall the product regardless. “Unfortunately recent developments and unfounded concerns about the product have led to an environment of confusion for the consumer, to such an extent that we have decided to withdraw the product off the shelves, despite the product being safe,” Nestlé said in a statement on Friday. Major retail chains including Wal-Mart have temporarily suspended Maggi sales. Maggi noodles are a hugely popular snack in India, where instant noodles are served to children and in roadside shacks across the country. (Bloomberg; Guardian)
Tax
HSBC pays £28 million over money-laundering claims
HSBC has been ordered to pay a record £28 million and been given a final warning by the Geneva authorities for “organisational deficiencies” which allowed money laundering to take place in the bank’s Swiss subsidiary. Authorities in Geneva raided offices in February, after several media organisations published details of how HSBC’s Swiss private bank aided wealthy clients avoid tax and helped arms smugglers launder money. The settlement means the Swiss will not prosecute HSBC or publish the findings of their investigation into alleged aggravated money laundering. But Geneva’s chief prosecutor, Olivier Jornot, cautioned that the bank was on notice, saying: “This is an excuse which will only apply once.” “HSBC Private Bank [in Switzerland] has acknowledged that the compliance culture and standards of due diligence in place in the Bank in the past were not as robust as they are today,” the bank said in a statement. (Guardian; Telegraph)
Supply Chain
Retailers asked to challenge credibility of eco-labels
Businesses that use sustainability labels for their product will be able to test the credibility of their claims with a new tool developed to increase transparency throughout the supply chain. ‘Challenge the Label’ is a web-based tool developed by ISEAL Alliance, the global association for sustainability standards and labels, after 18 months of dialogue with retailers, policymakers and standard-setters from across the world. The initiative encourages companies to dig deeper and ask important questions of their sustainability partners to determine whether their products are really ‘biodegradable’ or ‘carbon-neutral’ as the label may suggest. “It’s a jungle of sustainability claims and labels out there and this makes it confusing for businesses who are trying to find the right suppliers and partners for their objectives,” said ISEAL executive director Karin Kreider. Statistics from the Ecolabel Index reveal that there are more than 400 eco-labels on the market. (Edie)
Renewable Energy
Shell CEO: We can’t ignore the importance of renewable energy
Shell boss Ben van Beurden has told an OPEC meeting on Thursday that traditional energy sources must integrate and work together with clean technologies to provide sustainable and economically-sensible power for the future. Van Beurden said that the global energy system is going through a transition from coal and oil to a low-carbon model, where renewables play a key role. “In a world where, as we heard recently, Saudi Arabia has ambitions to become a ‘global power in solar and wind energy’, the vision of a long-term future powered in the main by renewables is one none of us can ignore,” he said. “It’s also a vision I would encourage all OPEC members to take seriously. Not least because I believe twenty years from now, if we don’t act, global public opinion will be unforgiving.” Shell is among the energy giants that have called for a strong climate agreement ahead of UN talks in Paris later this year. (Blue & Green Tomorrow)
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