Investors draw up ‘sin bin’ solution to executive pay
Leading City investors are to propose the creation a “sin bin” for companies that overstep the mark on bosses’ pay. Under proposals expected to be submitted to ministers this week, a company would automatically face a binding vote on its pay policy at its next annual general meeting if more than a quarter of shareholders protest against the directors’ remuneration report. Tour operator Thomas Cook and tobacco giant Imperial Brands have both been forced to back down over generous and opaque incentive schemes in the face of shareholder protests. Some institutions are also expected to push for radical reform of Britain’s stock exchange listing rules amid anger over corporate governance failings between Sports Direct and its minority shareholders. A so-called “Mike Ashley law” would increase the proportion of equity that must be floated to achieve a coveted premium listing, from 25pc to 50pc. The work and pensions select committee this weekend also called on the Government to make major changes to company governance in the wake of the BHS scandal. Big names should be subject to the same Financial Reporting Council standards as listed companies, the MPs said. (Telegraph)
Emissions
ArcelorMittal calls for carbon levy on imports to EU companies
The head of steel group ArcelorMittal has urged Brussels to look at increasing the cost of goods imported to Europe from countries without a carbon price to help protect EU companies from the bloc’s latest efforts to curb global warming. Lakshmi Mittal, chairman and chief executive says the contentious measure is needed because of moves to lift flagging carbon prices in the EU’s emissions trading system, a cornerstone of Europe’s policies to combat climate change. Mr Mittal said the measures to raise carbon prices could translate into a “carbon tax” of about €30 a tonne for the European steel industry — an amount that international producers selling into the EU would not be obliged to pay. Carbon Taxes were recently backed by a group of prominent Republican elder statesmen in the US last week, including former treasury secretaries James Baker and George Shultz. The European Commission said on Sunday it saw no need for Mr Mittal’s border adjustment measures because they “send the wrong signal to the international community and are challenging to implement”. (Financial Times)
Sadiq Khan calls on Government to incentivise diesel scrappage scheme
London Mayor Sadiq Khan has called on the UK Government to incentivise a diesel scrappage scheme for the public, by offering up to £3,500 to businesses and low-income families to support the uptake of low-emission vehicles. Under the plan, £3,500 would be paid to firms and households to switch from diesel vans and minibuses. A £2,000 credit scheme would be in place for low-income families to scrap around 130,000 cars and £1,000 payments would be offered for old diesel taxis. The Mayor believes that a scheme like this would reduce London’s road transport nitrogen oxide emissions by around 40% and generate more than £500m for the economy. Over the last 15 years, a variety of policy and tax enablers have seen diesel car sales in Britain increase from 14% to 36%. In response, it was last week revealed that the Department for Transport (Dft) is said to be working with Defra on a scheme which will offer cashback or a discount for people to scrap old diesel vehicles in exchange for low-emission models. (Edie)
Waste
Caffè Nero teams up with bio-bean and First Mile to turn waste coffee into fuel
Caffè Nero has revealed details of a scheme to recycle coffee grounds from 122 of its London stores to make low-carbon fuel. The scheme sees recycling specialists First Mile pick up coffee waste from Caffè Nero stores and take it directly to coffee recyclers Bio-Bean‘s Cambridgeshire factory to be turned into biomass fuel for boilers and woodburners. By July 2017 – when the scheme will have been in operation for a full year – Caffè Nero calculates it will have helped repurpose 218 tonnes of used coffee grounds, producing enough fuel to heat 435 homes for a year. The news of the partnership follows an announcement from Costa in December that bio-bean now receives coffee waste from 850 of its cafes nationwide, amounting to 3,000 tonnes of waste coffee grounds annually. Bio-bean is also working on a system to turn the oils from coffee waste in to biodiesel for vehicles. Experiments suggest one tonne of coffee waste could produce enough renewable fuel to fill four cars. (BusinessGreen)
Demographics & Labour Force
Britain faces an impending workforce crisis, according to Mercer Report
Research from consultancy firm Mercer argues that Britain is already experiencing a significant shortage of labour, thanks to shifting demographics, and it will only get worse once Brexit lowers the amount of immigration into the country. The key problem, Mercer argues in its latest Workforce Monitor, is that the UK’s population is ageing rapidly, meaning that fewer and fewer people as a percentage of the population will be able to work. Immigration helps to plug that hole, but when it starts to fall, the demographic shift becomes even more pronounced. In its report, Mercer suggests four different scenarios for the British Labour Market. The scenarios get progressively worse, with Mercer’s worst case involving a fall in Britain’s working age population as both EU immigrants and Brits leave the country as a result of Brexit. Mercer calls this the “Great EU Remigration” which it concludes that “the inability of certain sectors of the UK economy to fill roles could be dramatic.” (Business Insider)
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