The majority of listed companies fail to report comprehensively on tax
Only a small minority of listed companies (2.5%) report comprehensively on their tax payments in line with OECD recommendations, a new Vigeo Eiris study has found. This minority provides a country-by-country breakdown of their tax payments and data on their operations including sales, operating profit or the number of employees in each area of operation. Based on the analysis of the tax reporting structures of 1,139 multinational companies, the report also found that only a quarter of European companies (24.9%) and a fifth of American companies (18.3%) provided such information, while almost 1 in 10 companies (9.1%) failed to disclose any information on their tax payments. In addition, only a small number were found to justify their physical presence or the presence of their assets in tax havens or offshore centres. (Vigeo Eiris)
Some of the world’s tech giants are failing to show their efforts to reduce the environmental impacts of their supply chains, according to Greenpeace. The Guide to Greener Electronics report, which examined 17 companies in areas such as emissions reductions and elimination of hazardous chemicals, gave 11 companies – including Samsung, Huawei and Amazon – a score in the D to F range. The report noted a lack of action in tackling e-waste, which is expected to surpass 65 million metric tonnes by 2017. While progress has been made by brands like Dell through takeback schemes, there is little information on what is being reported or where it goes upon collection. A recent Basel Action Network investigation revealed that many discarded items are being exported to Asian countries for treatment. Planned obsolescence was also highlighted as an increasingly common feature, with many of the latest Apple, Microsoft and Samsung products said to be difficult to repair or upgrade. (edie)
Rabobank with U.N. launch $1 billion fund to boost sustainable farming
Dutch cooperative financial firm Rabobank has launched with the UN Environment a $1 billion programme to push farmers to promote sustainable food supply across the globe. The ‘Kickstart Food’ initiative is the first part of a three-year programme which will offer a mix of grants, low-interest loans and insurance products to boost sustainable practices covering land use, food waste, stability of supply and nutrition. Members of the executive boards explained the bank would use with its “knowledge, networks and financing capabilities” to “incentivise farmers” to transition to sustainable farming practices. The firm is currently working in Brazil to promote and finance Integrated Crop, Livestock and Forestry (ICLF) farming, which offers benefits such as soil protection, and has partnered with the WWF and the World Business Councilfor Sustainable Development to promote land management initiatives. (Reuters, edie)
Responsible Investment
PRI threatens to strip members of signatory status in ‘greenwashing’ purge
Hundreds of pension funds and asset managers could lose their Principles for Responsible Investment (PRI) signatory status in plans to cut down on “greenwashing”. Speaking at the Global Invest Forum in Paris, PRI managing director Fiona Reynolds said that 200 asset managers and schemes that have committed to the UN-backed principles, which notably include incorporating ESG issues into investment analysis and decision-making processes, are not meeting the standards. She added that the organisation was “bringing in new standards” that members will have to meet to remain signatory and was “working with them, giving them two years” to prove their active efforts. Around 1,800 firms are named as PRI signatories, with 46 asset owners, 175 investment managers, and 39 service providers based in the UK. Speaking separately, ShareAction Head of Research Toby Belsom said asset owners, including pension funds, should be challenging their managers on ESG activities. (Professional Pensions)
Corporate Reputation
US charges Rio Tinto and former chiefs with fraud
Rio Tinto, one of the biggest mining companies in the world, and two former senior executives have been hit with US fraud charges for allegedly trying to hide from their board, auditor, and investors a multibillion-dollar business failure by inflating the value of coal assets in Mozambique. The company pledged to fight the charges held by the US Securities and Exchange Commission. In the UK, the company has been fined £27.4 million over the affair, the largest fine the Financial Conduct Authority (FCA) has levied on a company for a listing-rules breach. The move is part of a broader investigations of companies including Cobham and Mitie on disclosure violations. Rio’s Mozambique adventure began in April 2011 when it paid $3.7 billion to mine an estimated 40 million of coal each year – a project that later proved to be unrealistic, overvalued and rejected by the government for environmental concerns. (Financial Times)*
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