Cargill and Bunge refuse to cut ties with palm oil trader
Cargill and Bunge, two of the world’s largest agricultural commodity traders, are refusing to cut ties with a leading Malaysian palm oil producer and trader, IOI Group, in spite of allegations that it failed to prevent its subsidiaries’ involvement in deforestation in Indonesia. The decision to continue trading with IOI Group is in marked contrast to large consumer groups, including Unilever, Nestlé, Kellogg and Mars, which have ceased trading with it after its sustainability certificates were suspended in March. Both Cargill and Bunge said they believed that it would be easier to drive change at IOI if they remained trading partners. IOI has become the first palm oil company to face a significant business impact as a result of not adhering to environmental codes. Moody’s last month announced that it was reviewing IOI’s credit rating for a possible downgrade after RSPO’s suspension and the subsequent customers’ reaction. (Financial Times*)
Responsible Investment
$4.8 trillion investor coalition announces support for world’s first business & human rights benchmark
A coalition of over 80 investors, with $4.8 trillion in assets under management, has pledged support for the Corporate Human Rights Benchmark, currently in its pilot stage. Included in the statement are some of the world’s largest investors including: Boston Common Asset Management, Aviva Investors, APG Asset Management, BNP Paribas Investment Partners, Church of Sweden and Australian Ethical Investment. The coalition argues that those companies that do not proactively assess and manage human rights issues face potential legal, reputational and other financial risks; while those who meet the ‘corporate responsibility to respect human rights’ gain competitive advantage. This coalition originally came together in February 2015 to support the UN Guiding Principles Reporting Framework, as a critical means to advance meaningful disclosure of companies’ human rights performance. (Business & Human Rights)
Ineffective red tape hampering green bonds, WWF warns
The confidence needed for the expanding green bonds market to thrive is being hampered by inadequate standards, frameworks and guidelines, as well as diverse market practices, according to new research by WWF. A lack of effective standards has also heightened the risk of ‘greenwashing’ said WWF, warning that not all green bonds are fulfilling their green promise. The NGO found increasingly varied regulations, definitions and requirements for green bonds are creating complexity and confusion among both issuers and investors, which it said could hamper the burgeoning green bond market. “Green bonds are vital for the future of a sustainable economy, but not everything labelled ‘green’ fulfils its promise,” said Nicole Clucas, sustainable finance specialist at WWF-UK. (Business Green)
Corruption
Singapore to form new body to fight money laundering
Singapore has said it will overhaul its system to combat money laundering, weeks after it ordered the local arm of a Swiss bank, BSI Bank, to shut down operations in relation to a laundering and bribery probe. The announcement comes as prosecutors in Singapore investigate what they said was the city-state’s largest-ever money-laundering investigation. The country’s central bank said it will establish a dedicated anti-money-laundering department in order to streamline the enforcement of regulations relating to money laundering and other financial malfeasance. Singapore is a major financial centre for Southeast Asia. Ravi Menon, managing director of the central bank, said that as Singapore’s financial centre grows in scale, sophistication and connectivity, so do the risks of abuse of the country’s financial system. (Wall Street Journal*)
Human Rights
FAO and ILO working together to stamp out child labour in agriculture
FAO and the International Labour Organisation (ILO) are reaching out to agricultural professionals to raise awareness about the importance of child labour issues. Both organisations have launched a new e-learning course designed for use by agricultural policymakers, programme designers and implementers, researchers and statisticians, to ensure that child labour prevention measures are included in agricultural and rural development programmes. The course covers all sectors: crops, livestock, forestry, and fisheries and aquaculture. “Child labour is certainly a complex issue, and it cannot be tackled alone. We need strong partnerships, where everyone brings expertise and resources to the table,” said FAO Director-General José Graziano da Silva. (Eco-Business)
Image source: Singapore Skyline by Cegoh / Public Domain
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