The chief executive of Unilever, the Anglo-Dutch consumer goods group that rebuffed a $143bn takeover proposal from Kraft Heinz, was paid 20 per cent less last year than in 2015, taking home €8.4m. Paul Polman, a flag-bearer of corporate sustainability, has often said that he would work for free and is “embarrassed” by the amount he is paid. His pay packet fell from the €10.4m in 2015, after a change in targets from long-term incentive schemes, according to the group’s annual report published on Tuesday. Mr Polman outlined a programme to incentivise managers with shares and said that this would foster an “ownership mentality” and generate a more entrepreneurial culture within one of the world’s largest multinationals. Mr Polman was ranked 16th out of a survey of the top 30 company bosses in terms of value for money, published last October by consultants Mercer Kepler. (Financial Times*)
Corporate Reputation
Automakers knew of Takata airbag hazard for years, suit says
The Justice Department’s criminal investigation into Takata’s rupture-prone airbags has so far painted automakers as unwitting victims duped by a rogue supplier that manipulated safety data to hide a deadly defect, linked to at least 11 deaths and over 100 injuries in the United States. But the fresh allegations against Ford, Honda, Nissan and Toyota, made as part of a class-action lawsuit in Florida, point to a far deeper involvement by automakers that used Takata’s defective airbags for years. Honda vehemently denied the new allegations on Monday. The three other automakers either declined to comment or said a response would come through legal channels. Last summer, The New York Times reported indications that automakers, rather than being the victims of Takata’s missteps, had pressed their suppliers to put cost before all else. Takata’s chief executive, said at the federal court hearing in Detroit the company’s actions were “completely unacceptable”. (New York Times)
Emissions
China fossil fuel emissions stall for third year running
Carbon emissions from China’s energy sector stalled last year for the third year running — as coal use fell again and solar deployment nearly doubled. The newly released government figures, analysed by Greenpeace, also suggest that emissions are on track to fall this year by around 1%.That would make it the longest stretch of stable or falling emissions on record — with 2014 the first year that China’s CO2 emissions failed to rise, and 2015 the year in which they fell by the largest amount. The dramatic energy change in China has helped halt the rise of global CO2 emissions for the first time since the first climate change treaty was signed almost three decades ago. What’s more, he government release – called the Statistical Communique on Economic and Social Development – shows that China’s total energy consumption rose by 1.4% last year, a slight uptick from the year before but in line with the dramatic slowdown since 2013. (Greenpeace Energy Desk)
Reform of EU carbon trading scheme agreed
An overhaul of the EU’s flagship trading scheme for cutting carbon emissions by European industries has been approved by the member states. The emissions trading system (ETS) is the EU’s key policy for combating climate change by reducing emissions from more than 11,000 installations in the power sector and energy intensive industries. The policy involves a market-based cap and trade system which forces companies to buy allowances to emit carbon. There have been widespread concerns that emissions were not being sufficiently capped due to an oversupply of “allowances” on the carbon market. Under the proposed directive – now due for deliberation by the European parliament – the number of allowances can be gradually reduced, to push up their cost and provide an incentive for industries to adopt cleaner technologies. The cap on emissions will fall by 2.2% a year – the so-called linear reduction factor – until at least 2024. However, Environmental campaigners claim that the reformed ETS does still not do enough. (Guardian)
Human Rights
Olympics: Host City Contract Requires Human Rights
The move by the International Olympic Committee (IOC) to incorporate human rights principles in its Host City Contract could help prevent major abuses by future Olympic hosts, the Sport and Rights Alliance (SRA) said today. The revised Host City Contract, developed with recommendations from a coalition of leading rights, transparency, and athletes’ organizations, was finalized in January 2017 and will first apply to the 2024 Summer Olympics. For the first time, the IOC has included explicit reference to the United Nations Guiding Principles on Business and Human Rights (UNGP), which outline the human rights responsibilities of businesses and anti-corruption standards. The Guiding Principles explain how commercial enterprises should assess human rights risks, take effective steps to avoid human rights problems, and ensure a remedy for abuses. The SRA also introduces a list of recommendations in a way to ensure that sports bodies and mega-sporting events respect human rights, the environment, and anti-corruption requirements at all stages of the process. (Human Rights Watch)
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