World business leaders call for global carbon pricing policies
A half dozen heads of state have joined forces with leaders of states, cities and corporations to call for wider adoption of carbon pricing policies ahead of the United Nations climate change summit in Paris in December. German Chancellor Angela Merkel, Philippines President Benigno Aquino III and French President Francois Hollande were among the world leaders who issued a joint statement through the World Bank urging governments and businesses to set up carbon markets and tax carbon emissions. Representatives from 190 countries are meeting in Bonn, Germany this week, for last-round discussions on the language of a global climate change agreement. A draft of the agreement to be approved in Paris currently excludes language on carbon pricing because some countries are opposed to the use of markets to address climate change. “We should advance our effort along this path further so that we can actually reach our goal,” German Chancellor Angela Merkel said in the statement. (Eco-Business)
Responsible Investment
Report: Ethical funds booming as fossil fuel shares plunge
Ethical investment funds appear to have benefited from their low or non-existent exposure to sectors such as mining and oil, where share prices have collapsed in recent months. A new report from ethical investment advice firm Castlefield, launched to coincide with Good Money Week, ranks performance of UK funds. The winner is FP WHEB Sustainability Fund, a £79 million fund launched in 2009 which “invests exclusively in companies providing solutions to sustainability challenges”, and which is up almost 41 percent over three years. The other winners are Alliance Trust Investments, ConBrio B.E.S.T Income and Quilter Cheviot Climate Assets Fund. Castlefield also warns that some funds claim to be ethical but still invest in environmentally damaging industries such as oil and gas. This means customers may not be getting the green or responsible investment they thought they’d signed up for. Castlefield’s ‘villains’ list names the major funds it says “contain investments which would trouble many responsible investors, such as fossil fuel companies”. They are: Aberdeen Ethical World Equity, Prudential Socially Responsible, Legal & General Ethical Trust and Virgin Money Climate Change Fund.(Guardian)
Corporate Reputation
US drug makers sidestep barriers on pricing
Sales of high-priced drugs are growing in the United States as drug companies circumvent the efforts of insurers and pharmacists to switch patients to cheaper generics, according to a New York Times investigation. Drug makers such as Horizon Pharma and Valeant Pharmaceuticals are increasingly using specialty mail-order pharmacies in order to encourage doctors to prescribe high-priced drugs, according to the paper. The pharmacy mails the drug to the patient and deals with the insurance companies, relieving the doctor of the reimbursement hassle that might otherwise discourage them from prescribing such an expensive drug. “They are all trying to get rid of the sticker shock of using their drugs,” said Dr. Kenneth Beer, a dermatologist in West Palm Beach, Fla. He said Valeant’s program, which he had used, buffered physicians from insurers and complaints from their patients about high prices. “It lowers one barrier to using their products,” he said. (NY Times)
Policy
UK to probe impact of EU environmental policies ahead of Brexit referendum
UK MPs are set to investigate the role that European green policies have played in helping to improve the UK environment ahead of the country’s planned referendum on EU membership, due to take place by the end of 2017. The House of Commons’ Environmental Audit Committee (EAC) has announced the new inquiry to examine the contribution of EU environmental objectives and policies in tackling environmental issues in the UK. The EAC said the inquiry will look at the pros and cons for the UK of environmental policy being determined at an EU level, as well as examining the implications of EU policies on UK environmental protection. Other ongoing inquiries by the committee include an assessment of the Green Investment Bank’s future, and investigating the impact of diesel emissions on air quality and the accuracy of diesel emission data. (Business Green)
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