American firm DuPont has topped a new league table from CDP which ranks chemical companies in terms of their preparedness for a “low-carbon future”. The research ranked 18 chemicals companies, representing over $500 billion in market cap, on seven emissions-related metrics, including product innovation, energy efficiency, water risk and carbon regulation. DuPont was described as the “comfortable leader”, with Dutch companies DSM and AkzoNobel in second and third respectively. The largest company by 2015 market cap – German firm Bayer at $120 billion – ranked 6th. CDP executive chairman Paul Dickinson said: “We are seeing investors become increasingly aware of the significance of environmental factors to the bottom line… CDP’s sector research series is core to a set of tools we are building that investors can adapt as needed to engage with companies on material issues.” (Edie)
Norway’s oil fund excludes four companies on environment risks
Norway’s sovereign-wealth fund, the world’s biggest, said on Monday that it would exclude four companies from its investment portfolio on concerns that the companies could create severe environmental damage as they convert tropical forest into palm-oil plantations. The excluded companies are South Korea’s Posco and Daewoo International as well as Malaysia’s IJM and Genting. The Norwegian central bank manages the $880 billion fund on behalf of the government, and took over responsibility for the fund’s ethically based exclusions this year. The decisions were previously made by the country’s Ministry of Finance. The fund has previously excluded more than 60 companies for reasons including the production of land mines, tobacco or nuclear weapons, the violation of human rights, or the risk of severe environmental damage. (WSJ*)
Governance
Business ethics no longer just compliance issue, say accountants
Growing numbers of finance professionals feel under pressure to compromise their ethical standards, according to a new report from the Chartered Institute of Management Accountants (CIMA). The third annual Managing Responsible Business report polled 2,498 professionals across the world. It found that countries where members face the highest levels of pressure to compromise professional ethics are Sri Lanka (61%), Malaysia (58%) and Pakistan (54%). Respondents in the UK, US and Ireland reported the lowest levels, although the proportion of UK-based workers reporting such pressure jumped from 18% in 2012 to 30% in 2015. Worryingly, a fifth of respondents agreed that those who report concerns about unethical behaviour are seen as troublemakers by management. (Ethical Performance)
Security
Uber to expand security team in push to strengthen data safety
Uber, the ride-hailing service provider, is to significantly expand its security team as it seeks to soothe worries about data privacy, defend against hackers and even protect its offices and employees from physical attack. The group, most recently valued at about $50 billion, plans to end the year with more than 100 staff in its security team, an increase from about 25. In February, it said the personal information of about 50,000 Uber drivers had been accessed in a data breach by an unknown party. Uber employees might need protection as they could be “polarising figures in their communities”, chief security officer, Joe Sullivan said. The company has faced opposition from taxi drivers, including high-profile clashes on the streets of Paris, and governments from New York to Hong Kong. (CNBC)
Policy
Australia aims to shield mining projects from green groups
Australia’s conservative government plans to amend environmental laws to prevent green groups from challenging mining projects in which they have no direct involvement. Opening another front in what has been a long-running battle with the environmental movement, Industry Minister Ian Macfarlane told Parliament on Tuesday that “there is a strategy to destroy jobs,” and resource projects were being blocked by activists “regardless of the economic impact on the community.” The push to amend environmental laws comes after a court decision earlier this month overturning approval for Indian conglomerate Adani Group to build one of the world’s biggest new coal mines on scrubland near the Great Barrier Reef. (WSJ*)
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