Report: Unilever, Tesco, Diageo top in Modern Slavery Act compliance study
Development International has produced a study focused on corporate compliance with the UK Modern Slavery Act, for companies operating in the UK, with a worldwide revenue over £36 million per year, required to report annually on steps taken to prevent modern slavery in their value chains and business. The assessment, Corporate Compliance with the UK Modern Slavery Act – 2017/18, systematically benchmarks the legal compliance, disclosure conformance, and anti-slavery/anti-human trafficking good practice performance of the part of 6,501 organisations that issued a statement in-line with the law. The study finds that organisations performed better on legal compliance and disclosure conformance rather than on anti-slavery/anti-human trafficking good practice. Yet there are several examples of organisations who excelled in all three areas, indicating that it is possible to meet the letter and spirit of the law. The top performers highlighted by the study include Unilever, Tesco and Diageo. (Development International)
Policy
UK set to force companies to reveal ratio of CEO pay to workers
The UK is putting forward legislation in May that will require companies to publish the ratio of what they pay their chief executive compared to the average worker’s salary and to spell out the impact of future share price rises on executive pay. The move is part of sweeping corporate governance reforms first signalled in August 2017 that will also require boards of both public and private companies to prove they have acted in the best interests of employees, suppliers and customers, not only shareholders. This is currently set out in Section 172 of the Companies Act but so far has not required them to demonstrate how it has been met. A revised version of the corporate governance code for large listed companies is expected to be published in July. Proposals are also being drafted for a governance code specifically for private companies, which is expected to be introduced next year. (Financial Times*)
Climate Change
Michael Bloomberg to write $4.5 million cheque for Paris Climate Agreement to cover decrease in funding from US
Former New York mayor and billionaire Michael Bloomberg has said that he will pay $4.5 million to help cover the US’s 2018 financial commitment to the Paris Climate Agreement. President Donald Trump pulled the US out of the pact in 2017 with a resultant decrease in the amount of money the US will annually allocate to the UN Climate Change Secretariat from $7.5 million to $3 million. Bloomberg said he hopes that by 2019 Trump will have changed his mind regarding the US’s involvement in the Paris Agreement but will continue to provide money for the pact if the US does not re-join, according to a news release from Bloomberg Philanthropies. “Our foundation will uphold our promise to cover any cuts to UN climate funding by the federal government,” Bloomberg said in the statement. (Reuters)
Lyft says every ride will be carbon neutral with clean-air plan
Lyft plans to spend millions of dollars a year to fund projects that would offset the pollution created by its drivers. The move could help the second-largest US ride-hailing company draw environmentally conscious customers from Uber. As part of the program, Lyft hired a company, called 3Degrees, to oversee carbon-offset investments including efforts to reduce pollution in auto manufacturing and forest conservation. “We feel immense responsibility for the profound impact that Lyft will have on our planet,” founders Logan Green and John Zimmer wrote in a blog post. “As we continue to grow, we have a greater responsibility to dedicate material resources to our vision and values.” Lyft declined to estimate how much it would spend on carbon offsets but described it as a “multi-million dollar investment in the first year alone,” according to the founders’ blog post. It makes Lyft one of the top voluntary purchasers of carbon offsets in the world. (Bloomberg)
UN Global Compact
Bola Adesola, Standard Chartered – Nigeria, and Paul Polman, Unilever, appointed UN Global Compact Board Vice-Chairs
UN Secretary-General António Guterres has announced the appointment of Bola Adesola, CEO and Managing Director of Standard Chartered – Nigeria, and Paul Polman, CEO of Unilever, as new Vice-Chairs of the Board of the United Nations Global Compact. Adesola and Polman succeed out-going Vice-Chair of the UN Global Compact Board, Sir Mark Moody-Stuart, former Chairman of Royal Dutch Shell and of Anglo American. Adesola and Polman previously served on the UN Global Compact Board, and bring significant expertise to the role from their wealth of experience in the private sector, the corporate sustainability space and specifically with the UN Global Compact itself. The UN Global Compact Board has a vital role to play in shaping the strategy and policy of the initiative, which acts as the United Nations flagship for responsible business action. (3bl Media)
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