Nearly half of the world’s largest investors are disregarding climate risks entirely, according to the Asset Owners Disclosure Project (AODP). AODP’s annual Global Climate 500 Index, which tracks the 500 largest funds in the world, found that 246 investors managing $14.3 trillion are doing nothing to address the investment risks related to climate change. The biggest investors accused of ignoring climate risks include sovereign wealth funds in the oil states of Abu Dhabi and Saudi Arabia, as well as China and Hong Kong. However, a fifth of the 500 investors assessed are taking tangible action to mitigate climate change risks to their portfolios. When looked at by country, the ranking puts the UK in seventh place in the world for investor action on climate change, with Sweden then Norway claiming first and second place, followed by Australia, France, Denmark then the Netherlands. (Business Green; Chief Investment Officer)
Strategy
Timberland puts best foot forward with new sustainability goals
Clothing and shoe brand Timberland has unveiled a new suite of environmental goals designed to ensure the bootmaker takes serious strides towards becoming a greener, more ethical company by 2020. The new 2020 targets include a commitment to source 50 percent of energy used in its facilities from renewable sources, ensure all footwear products include some recycled, organic or renewable material, and use 100 percent organic clothing. In addition, Timberland also announced a set of new formal environmental standards that will apply across all of its categories to help curb the environmental impact of its products. “At Timberland, we hold ourselves accountable for what goes into our products as well as how they’re made, and we’re constantly seeking innovative solutions to reduce their environmental impact,” said Colleen Vien, sustainability director for Timberland. (Business Green)
Environment
World Bank: Global water shortages to deliver ‘severe hit’ to economies
Water shortages will deliver a “severe hit” to the economies of the Middle East, central Asia, and Africa by the middle of the century, taking double digits off their GDP, the World Bank warns in its latest report. By 2050, growing demand for cities and for agriculture could put water in short supply in regions where it is now plentiful – and worsen shortages across a vast swath of Africa and Asia, spurring conflict and migration. Without a radical shift in management, water shortages could strip off 14 percent of GDP in the Middle East, nearly 12 percent of GDP in the Sahel and 7 percent in East Asia, according to the bank’s projections. The report also warns that competition from other uses could reduce water availability in cities by as much as two thirds by 2050, and could multiply the risk of conflict. (Guardian; World Bank)
Corporate Reputation
Tobacco companies lose EU court appeal over plain packaging rules
Tobacco firms have lost a legal challenge against EU rules that force them to put graphic images on cigarette packages warning people of the dangers of smoking. Europe’s highest court rejected the challenge brought by Philip Morris International and British American Tobacco (BAT), setting a precedent that could see other governments launch a crackdown on the habit that kills six million people a year. The measures do not go “beyond the limits of what is appropriate and necessary,” the EU Court of Justice said. The Luxembourg-based court’s decision cannot be appealed. The case stems from a UK court case. In 2014, British judges sought the EU tribunal’s view on whether the new European rules are valid. Philip Morris, BAT, and Japan Tobacco went to court again, this time claiming British measures violate the companies’ intellectual property rights. (Independent; Bloomberg)
Google and eBay refuse to ban ads offering to remove car pollution filters
Google, Gumtree and eBay have refused to ban adverts in the UK for a service which removes crucial pollution filters from the exhausts of diesel cars, sending toxic emissions soaring. Replacing diesel particulate filters can be expensive, leading garages to offer to remove the filters completely. The service exploits a loophole in the law which means that driving a diesel car without a filter is an offence, but the act of removing it is not. Over a thousand diesel car owners have already been caught after removing the filter, though experts warn the problem may be far more widespread. Campaigners are now complaining to the Advertising Standards Authority (ASA) that such adverts break its code, which bans motoring “practices that condone or encourage anti-social behaviour”. Particulate pollution causes 40,000 to 50,000 early deaths every year in the UK, and ministers have labelled the removal of filters “unacceptable” and “clearly detrimental to people’s health”. (Guardian)
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