The European Union has agreed a deal to stem the flow of gold and other metals used to fund armed conflicts or produced in conditions that breach human rights. EU importers of tin, tungsten, tantalum, gold and their ores will from 2021 have to carry out due diligence checks on their suppliers. The legislation will also apply to smelters and refiners. The rules will cover the minerals anywhere in the world, meaning they go further in scope than US Dodd-Frank legislation that is limited to the Democratic Republic of Congo and nine neighbouring countries. However, the EU will only scrutinise imports of the raw materials, while the US law extends that to their use in products such as mobile phones, electrical goods and cars. (Reuters)
Sustainable Development
New funding platform launched for sustainability projects in Asia
Projects in the areas of the circular economy, sustainable energy or social impact in Asia now have a new potential source of funding in the Sustainable Finance Collective (SFC) Asia. The funding platform was launched by ING Bank at the Responsible Business Forum on Sustainable Development in Singapore, with the support of Credit Suisse, Dutch development bank FMO and the United Nations Development Program’s Social Impact Fund. The launch of SFC Asia comes on the heels of the COP 22 in Marrakech, which concluded without a deal for richer nations to help fund the efforts of less developed, climate-vulnerable nations in reducing emissions and becoming climate resilient. (Eco-Business)
Tax
Google nears tax settlement with Indonesian government
Google is expected to reach a tax settlement with the Indonesian government in the next few weeks, according to Reuters. A senior tax official said in September that Indonesia planned to pursue Google for five years of back taxes, and the company could face a bill of more than $400 million for 2015 alone if it were found to have avoided payments. If the settlement goes ahead, it could pave the way for more countries to aggressively pursue back taxes from internet companies like Google. In January, Google agreed to pay £130 million in back taxes to settle a probe by Britain’s tax authority. (Reuters)
Corporate Reputation
No evidence of aloe vera found in aloe vera gels at Wal-Mart, CVS and Target
The “aloe vera” gel many Americans buy to soothe damaged skin contains no evidence of the aloe vera plant at all, according to lab tests. Samples of store-brand aloe gel purchased at national retailers Wal-Mart, Target and CVS showed no indication of the plant. The three samples contained a cheaper element called maltodextrin, a sugar sometimes used to imitate aloe. The US Food and Drug Administration doesn’t approve cosmetics before they’re sold, meaning suppliers are on an honour system, according to Chicago-based market researcher SPINS LLC. Spokespeople for Wal-Mart, CVS and Walgreens Boots Alliance said their suppliers confirmed to them that their products were authentic. (Bloomberg)
Responsible Investment
Investors release guide to increase climate change engagement with oil and gas organisations
In an attempt to ensure that oil and gas companies do more to tackle the climate change challenge, global investors are updating guidance on climate risks facing the sector. An updated second edition of the Institutional Investors Group on Climate Change guide has been published, setting out the challenges facing the sector and investor expectations for how oil and gas companies must act to adapt their business strategies to a 2°C climate change pathway. It is focused in particular on how companies in this sector are governing and managing the transition risks and opportunities associated with a climate trajectory of no more than 2°C of global warming. (Blue & Green Tomorrow)
Image Source: Aloe Vera by joanshannon / Public Domain
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