“Ethical” investment funds putting money into oil and tobacco firms
According to data compiled by Bloomberg, oil and tobacco companies are among the holdings of some of the biggest funds that invest following environmental or social governance guidelines. Bloomberg found that of the world’s top 30 ethical funds, at least six hold oil companies. Bloomberg says a lack of a clear definition of what an ethical fund should be has led to confusion in the sector. While some funds only support clean-energy producers, others invest in a wide range of holdings, which may not fall within the typical idea of “doing good”. This loose definition has helped ethical investing grow about 80 percent over the past five years to $223 billion, Bloomberg says. (Bloomberg)
Investors urge independent review of Sports Direct’s practices
The Investor Forum, whose members manage £14.5 trillion of investments, has put pressure on sports retailer Sports Direct to conduct an independent review into the company’s governance and employment practices. It is the first time the group, which represents 27 per cent of Sports Direct’s shareholders and asset management groups such as BlackRock and Allianz, has publicly voiced concerns about a company over corporate governance failings. Sports Direct has been hit by a string of scandals relating to pay and working practices, likened to that of a “Victorian workhouse” by a committee of MPs. Frustration from Sports Direct shareholders is growing, with several warning they are considering voting against the reappointment of board members at the retailer’s AGM. (Independent)
Corporate Reputation
Mylan to provide EpiPen cost assistance following criticism
Pharmaceutical company Mylan will reduce the cost of its EpiPen, a product used to treat severe allergic reactions, for some patients through increased financial assistance. The announcement comes a day after the company was accused of “putting profits ahead of patients” by Hillary Clinton, with a number of other lawmakers supporting the call on Mylan to reduce its prices. However, the company has not promised to reduce its prices, nor did it address the price hikes on its other products. Lawmakers have called on Mylan CEO Heather Bresch to appear before US Congress and explain why the price of EpiPen went up by 461% since Mylan acquired it in 2007. In a statement, Bresch blamed insurance companies for shifting costs on patients and called on “all involved” to help address the US healthcare crisis. (The Guardian)
Reporting
Singapore’s port authority to help fund sustainability reports for shipping firms
The Maritime and Port Authority of Singapore has announced an initiative to help publicly-listed maritime companies with the cost of their sustainability reports. This comes after the Singapore Exchange launched its official “comply or explain” sustainability reportingrequirements in June. The authority will co-fund half of the sustainability report costs up to a maximum of S$50,000 for each company. The initiative aims to raise sustainability standards in the shipping industry and it is hoped that it will encourage more companies in the industry to publish credible sustainability reports in line with reporting standards such as the Global Reporting Initiative. (Eco-Business)
Circular Economy
General Motors recycles plastic bottles from Flint community to make coats for the homeless
US vehicle manufacturer General Motors (GM) is adding 2 million water bottles from Flint, Michigan residents into its “Do Your Part” water bottle recycling initiative. This volume of recycled plastic coming from the Flint community, subject of an ongoing crisis involving contaminated tap water, supplements an estimated 1.2 million bottles from five GM facilities throughout Detroit. The plastic that is recovered is washed, flaked and turned into fleece to make three products; engine covers; air filters for ten GM plants; and insulation for coats given to the homeless. Each coat, which transform into sleeping bags, contain the equivalent of thirty-one plastic bottles and are given to those in need at no cost. (CSRwire)
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