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October 29, 2015

Supply Chain

Mitsubishi seeks Olam’s sustainable approach in $1.1bn deal

Mitsubishi Corporation, Japan’s largest trading company, acquired a fifth of agricultural trader Olam in August, in a $1.1 billion investment driven by growing demand for food, as well as demand for food grown sustainably. “[Mitsubishi] placed a big importance on Olam’s sustainable and traceable sourcing of agricultural products,” says Hiroaki Nakayama of Mitsubishi’s living essential resources division. “It was one of the key attractions.” The Japanese group hopes to access Singapore-based Olam’s expertise and engagement with smallholder farmers and producers in remote regions in Asia and Africa. With leading food groups such as Nestlé, Unilever and Mondelez pledging to increase sustainable sourcing on commodities including coffee, cocoa, and palm oil, having access to sustainable production is crucial for trading companies and producers looking to secure supply contracts, say sustainability experts. Friedel Hütz-Adams, researcher at Südwind, a German supply chain research and consulting firm says in some cases, “if [a buyer] knows you don’t have sustainable coffee or cocoa, they will have no interest in doing business with you”. (FT)*

Corporate Reputation

Fans send Ai Weiwei Lego bricks after company’s “act of censorship”

Lego fans have come to the rescue of dissident Chinese artist Ai Weiwei after the Danish toy firm refused to supply any bricks to his latest installation, fearing that it would be used as a political statement. The snub has prompted a number of collection points around the world, including Beijing, London, Berlin, Melbourne and New York. Weiwei’s fallout with Lego was revealed earlier this week when the artist posted a picture of Lego bricks in a toilet. He said: “As a powerful corporation, Lego is an influential cultural and political actor in the globalised economy with questionable values. Lego’s refusal to sell its product to the artist is an act of censorship and discrimination.” Weiwei suggested the refusal may be connected with plans to construct a Legoland theme park in China – something the company denies. A Lego spokesperson said that the company chooses to refrain from actively engaging in political activities – a policy that has been in place for decades – but that Weiwei was still free to use Lego bricks as a paying customer. (The Drum; Fast Company)

Natural Capital

Reintroducing the lynx to the UK ‘could have economic and environmental benefits’

Bringing back the lynx, which vanished from the UK more than 1,300 years ago, could generate £68 million over 25 years in net benefits, according to a report for the Lynx UK Trust. The trust is launching a national consultation for farmers and landowners on a trial reintroduction of the cat at several sites in the UK over a five-year period. There is an “overwhelmingly strong” case for the move as it will boost the economy, wildlife, forestry and farming while posing no risk to people and little to no threat to livestock and pets, the Trust believes. The analysis by AECOM looks at the impacts of reintroducing the Eurasian lynx at two proposed sites and finds economic benefits deriving from eco-tourism, creating jobs in the rural economy, and improving crop yields and woodland management by keeping down deer. Chris White, senior environmental economist at AECOM, said: “Our cost-benefit analysis shows that the argument for reintroducing lynx to the UK is compelling from an economic, social and environmental perspective.” (BT)

Policy

Climate deal important for public health, says WHO official

A new global agreement to combat climate change, due to be reached in December in Paris, is more important for everyone’s health than many people realise, a senior World Health Organization (WHO) official said on Tuesday. Apart from the direct impact, disasters like heatwaves and floods increase the risk of infectious diseases spreading, while air pollution in cities causes diseases such as lung cancer and strokes, said Maria Neira, the head of public health at WHO. The WHO estimates that 7 million people a year die as a result of air pollution, which is made worse by rising temperatures, especially in cities. Tackling the causes of climate change offers a path to healthier lives by reducing the spread of diseases and limiting the risk of disasters, which can destroy people’s access to food, water and shelter, Neira said. Health experts warned in June that the threat to human health from climate change is so great that it could undermine the last 50 years of gains in development and global health. (Eco-Business)

 

Malaysia urges Indonesia not to compromise with companies carrying out forest fires

Malaysia has urged the Indonesian government to take stern action against companies including those from Malaysia found to carry out forest and estate burning there, resulting in the region’s haze problem. Minister of Natural Resources and Environment, Wan Junaidi said Malaysia’s stance was clear: that it would not side with any Malaysian company which committed offences and did not follow the law in other countries. “Malaysian companies which operate here are subject to Indonesian law, so it is up to the government of the republic to take appropriate action on them if they are guilty,” he said. Wan Junaidi said Indonesia must be stern and not compromise with any individual or estate company from any country which purposely burnt forest and agricultural areas. He said Malaysia also hoped a memorandum of understanding on efforts to resolve the haze issue in ASEAN nations, scheduled for last July, would be signed soon. (Eco-Business)

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Image Source: Lynx Langerberg by Elchhaus / CC BY SA 3.0

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