Higher carbon tax needed to avoid climate catastrophe
A group of economists have warned that the world risks catastrophic global warming in just 13 years unless countries ramp up taxes on carbon emissions to as much as $100 per metric tonne. The call for action in a report by the High Level Commission on Carbon Prices, may sting European leaders, who have presided over a carbon trading scheme since 2005 that currently charges major polluters €6 for every tonne of carbon they release into the atmosphere. The European Union’s Emissions Trading System (ETS) is the world’s biggest scheme for trading greenhouse gas emissions allowances and covers 11,000 power stations and industrial plants, whose carbon emissions make up almost 50% of Europe’s total. Critics of the ETS accuse officials of issuing too many credits and allowing the price to fall to a level that makes it cheaper for companies to pollute than change their behaviour. The report supports this theory, saying that prices must rise to give businesses and governments an incentive to lower emissions even when fossil fuels are cheap. (Guardian)
German and Italian firms join forces on hydrogen bus development
A group of German and Italian public transit companies are seeking tenders for the development of 63 hydrogen fuel cell buses as part of an EU-funded low emission transport project to help boost urban air quality. The joint procurement process aims to secure lower prices for building the low emission buses, which it’s hoped will begin operating “in the next few years” across Germany. According to German transport firm WSW mobil GmbH, which is leading the procurement process, hydrogen fuel cell vehicles produce lower nitrogen oxide emissions than fossil fuel equivalents and with ranges of up to 400km on a single charge can be as flexible as diesel buses. The hydrogen needed for the buses can also be produced either as a by-product from the chemicals industry or via an “electrolysis” process from renewable electricity. The procurement process is being partly supported by the EU-funded JIVE project, which is aiming to deploy 139 new zero emission fuel cell buses across nine cities in Europe. (Business Green)
Reporting
Exxon Mobil steps up efforts to sway shareholders against climate-report vote
Exxon Mobil Corp has stepped up efforts to persuade investors to vote against climate-related proposals at Wednesday’s annual meeting. The world’s largest publicly traded oil company opposes a proposal requiring it to report on the risks to its business from new technologies and global climate change policies. Last year, the same proposal to increase CSR reporting was not backed by shareholders, however, this year the stakes are higher. The business-impact issue is central to lawsuits by two state attorneys general alleging Exxon soft-peddled the risks to consumers and shareholders. Wall Street support of similar measures has convinced other energy companies to address the risks associated with and efforts to combat climate change. If the proposal garners less than last year’s 38 percent support, it would endorse Exxon’s view that its current reporting is appropriate. However, a majority support of the vote would mean that the Exxon Mobil would have to increase its transparency on potential business impacts from having to meet the Paris Agreement’s temperature goal. (Reuters)
Supply Chain
L’Oréal, McDonald’s commit to eliminate deforestation from commodity supply chains
Teaming up with non-profit CDP, McDonald’s and L’Oréal are taking strides to eliminate deforestation practices from their supply chains. The multinationals are joined by Firmenich, Johnson & Johnson and Restaurant Brands International, among others. Approximately a quarter of the participating companies’ revenues depend on the four commodities responsible for the most global tropical forest loss — cattle, timber, palm oil and soy. Deforestation therefore represents a significant business risk and in excess of $906 billion in annual turnover could be at stake, according to a 2016 CDP analysis. Alongside the action taken by businesses, governments are also increasing their efforts to promote sustainable, transparent supply chains. In April, the European Parliament approved a resolution to introduce a single certification scheme for palm oil entering the European Union and to phase out the use of vegetable oils that drive deforestation by 2020. (Sustainable Brands)
Cyber Security
Financial institutions say biggest threat of financial crime stems from cyberspace
A survey of nearly 200 senior professionals working in retail banks, investment banks and asset management firms shows that 44 per cent currently perceive so-called evolving criminal methodologies, like cyber-crime, to be the single biggest financial crime risk for their businesses. The survey, conducted by information provider LexisNexis Risk Solutions, found that 92 per cent of responders are concerned that their organisations’ legacy technology is “a barrier to fighting financial crime over the next one to two years”. Furthermore, 87 per cent said that their business isn’t able to enhance their technology fast enough to counter evolving criminal methods. The report found that the problem is being compounded by the regulatory environment and the associated costs as increased regulations require investment in new technologies. The risk of cyber-crime moved into sharp focus after tens of thousands of individuals across almost 100 countries were affected by a massive “Wannacry” cyber-attack earlier this month. (Independent)
COMMENTS