Report: Five seismic shifts to shake global electricity over the next 25 years
Five dominant trends are set to put unprecedented pressure on energy companies, utilities and policy-makers over the next 25 years, according to Bloomberg’s New Energy Outlook 2015. According to the report, the five major shifts that will take place between now and 2040 include the proliferation of solar power, an increase in rooftop and other local solar systems and a decrease in global energy demand as energy-efficiency rises. Solar will begin to outcompete fossil fuels, attracting $3.7 trillion in investment between now and 2040. Furthermore, the report predicts, natural gas will not be the “transition fuel” to wean the world off coal, as most countries will opt for a twin-track of coal and renewables. Finally, the report warns, the shift to renewables will not be fast enough to prevent perilous levels of global warming, with enough investment in fossil fuels in developing countries to ensure global CO2 emissions continue rising until 2029. (Business Green)
Corporate Reputation
Top US retailers drop confederate flag merchandise
Walmart, Sears, eBay, Amazon and Google are removing all Confederate flag merchandise in the wake of the murder of nine black churchgoers by a white man who had been photographed posing next to the controversial civil war era insignia. The decision by some of the US’s largest retailers follows the push by South Carolina’s governor to remove the flag, which is increasingly seen as a racist symbol, from the state capitol after the massacre last week. The retailers’ moves are significant given the market share they command. Walmart is the largest retailer in the US, Sears the third-largest department store by sales in the country, and Amazon and eBay have a commanding share of online retailing. “We never want to offend anyone with the products that we offer. We have taken steps to remove all items promoting the Confederate flag from our assortment – whether in our stores or on our website,” Walmart said. (Financial Times*)
GSK and Unilever among 17 companies fined for historical price-fixing in Belgium
Unilever and GSK are among 17 companies fined a total of £126 million for fixing the prices of personal care products such as deodorants and soaps in Belgium between 2002 and 2007. Nurofen maker Reckitt Benckiser, L’Oreal and Carrefour were also involved in what is thought to be one of the first times grocers have been penalised by Belgium’s competition authority for colluding with manufacturers. In 2006, Colgate-Palmolive acted as whistleblower and was granted immunity from fines. Subsequently, GSK and Reckitt Benckiser also applied for leniency and were granted a reduction of penalties. A spokesman for Unilever said: “The settlement relates to a historical industry-wide investigation into potential competition law infringements. Unilever fully co-operated with the competition authorities.” The fines come less than six months after similar fines were issued in France. (This is Money)
Circular Economy
Circular economy could boost UK GDP by £29 billion
Closed loop economic systems could boost UK GDP by £29 billion and create 175,000 jobs over the next decade, according to new research from Imperial College London, commissioned by Veolia. The study shows £23.7 billion could be derived through reprocessing and recycling waste materials with a further £3.1 billion created through service-based business models. Businesses would save £2.3 billion in taxes currently paid on waste sent to landfill, while incinerating materials that cannot be reprocessed would generate £1.1 billion worth of power. A number of major companies including Marks & Spencer, IKEA and Unilever have already implemented closed loop systems in recognition of dwindling resources and spiralling commodity prices, but companies must do more to take advantage of the commercial and risk management benefits offered by circular economy models. (Business Green)
Governance
UK regulators plan to extend bank bonus clawback to 10 years
Banks will be able to claw back bonuses from their most senior managers for up to a decade under rules published on Tuesday by UK regulators. The Prudential Regulation Authority and Financial Conduct Authority said in a joint statement on Tuesday that they were pushing ahead with rules for a wider seven-year clawback period, but that a further three years is being considered for the top tier of banks’ management where regulators find problems, to run concurrently with a seven-year bonus-deferral period. The rules give the UK one of the most stringent regimes governing bonuses and pay. The requirements are part of a wider set of measures introduced in the UK to try to improve accountability at the top and ameliorate culture in the City of London after a string of scandals, including the Libor and foreign-exchange rigging scandals. (Financial Times*)
COMMENTS