The UK government is considering a ban on unpaid internships, amid concerns they give richer candidates an unfair boost in the race to get top jobs. The proposed bill would require companies to pay interns at least the minimum wage for their work. It excludes school-age children, apprentices and full-time university and college students completing work experience as part of their studies. The bill’s sponsor, Tory MP Alec Shelbrooke, called unpaid work a “scourge on social mobility”. He added: “There are a number of businesses such as KMPG, Ernst & Young and Pimlico Plumbers that already offer paid internships, showing that there really is no excuse for profit-making companies not to pay their workforce.” (BBC)
Environment
Shipping industry criticised for failure to reach carbon emissions deal
The world’s leading shipping organisation has been condemned by environmental campaigners and MEPs for its failure to urgently tackle the industry’s impact on climate change, after it agreed only to a partial reduction in harmful emissions from ships. The International Maritime Organisation (IMO) agreed to cap sulphur emissions by 2020, but on greenhouse gases agreed only to some further monitoring and a fresh round of negotiations in 2023. The Sustainable Shipping Initiative, a collection of business and NGOs that has previously pressed the IMO to set carbon targets, tweeted that it was “time for action” on CO2. (Guardian; Sustainable Shipping Initiative)
Corporate Reputation
Rolls-Royce middlemen may have used bribes to land major contracts
British manufacturing multinational Rolls-Royce hired a network of agents to help it land lucrative contracts in at least 12 different countries, sometimes allegedly using bribes, according to a Guardian/BBC investigation. The network of agents is now the focus of large-scale investigations by anti-corruption agencies in the UK and the US. The investigation has echoes of the controversy that enveloped the inquiry into the arms manufacturer BAE Systems, which was halted in 2006 due to concerns that it would endanger Britain’s security. The separate investigation into Rolls-Royce became public in 2012 following allegations of malpractice in Indonesia and China. But the new investigation suggests the use of agents was far wider than previously publicly known. (Guardian)
Wells Fargo agrees to $50 million settlement over homeowner fees
Wells Fargo, the US’ biggest bank, has agreed to pay $50 million to settle a racketeering lawsuit accusing it of overcharging hundreds of thousands of homeowners for appraisals ordered after they defaulted on their mortgage loans. The proposed settlement requires court approval, but if approved, will resolve nationwide claims that Wells Fargo charged much more than it paid for third-party appraisals, exploiting borrowers who could least afford it and driving them further into default. The settlement of the lawsuit comes as the bank is still recoiling from a scandal over sales targets that drove employees to create unauthorized accounts for customers. (Reuters)
Responsible Investment
IFC launches new $152m green bond designed to protect forests
A first-of-its-kind forest protection bond from the International Finance Corporation (IFC) gives investors the option of getting repaid in either carbon credits or cash. It aims to mobilise $152 million to support private sector development and prevent deforestation in developing countries. The Forests Bond was developed in partnership with mining giant BHP Billiton and NGO Conservation International, with carbon credits generated by a conservation project in the Kasigau Corridor in Kenya. BHP Billiton will provide a price-support mechanism, by committing to offtake the carbon credits if investors elect for the cash coupon instead of the carbon coupon. The IFC said the five-year bond was sold to a number of major investors, including CalSTRS, TreehouseInvestments, TIAA, and QBE. (Business Green)
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