CONSUMERS

Brussels targets greenwashing and planned obsolescence in EU rules

New rules presented by the European Commission aim to better protect consumers against false environmental claims and introduce a ban on greenwashing and tech-focused planned obsolescence. The updated rules will ensure that European consumers are able to make informed decisions when shopping for environmentally-friendly products. Consumers will also have a right to know the durability of their tech products, such as smartphones, obliging companies to inform consumers about software and functionality durability. Sellers will not be allowed to put a sustainability label on their product if there is no certification or recognition by a public authority for it. It also prohibits sellers from making generic environmental claims such as “eco-friendly”, “green” if they cannot demonstrate environmental performance. (edie)

INEQUALITY

Women-led UK firms struggle to attract equal capital investment

Results from an index have found that companies led by women disproportionately attract less investment than those led by men. The Gender Index is a research study of all 4.4 million active UK companies and allows users to track the impact of female-led firms on the economy. The data identified that just under 17% of all active companies are led by women, but they attracted less than 12% of investments made in UK firms, with the rest led by gender-balanced firms. In comparison, 61% of active companies are led by men, and those firms attracted 66% of all investment. This comes at a time when women are starting more companies than ever before, with the index recording 145,200 new companies founded by women in 2021. (The Guardian)

STRATEGY

Businesses fail to back net-zero with medium-term reduction plans

A benchmark report has found that companies are failing to set medium-term emissions reduction targets that are aligned with the Paris Agreement. The benchmark, published by the world’s largest investor engagement initiative on climate change ClimateAction 100+, analysed 166 companies on their efforts to align with the Paris Agreement. The analysis found positive progress with 69% of companies committed to net-zero emissions by 2050, a 17% year-on-year increase. Additionally, 89% have aligned with the Taskforce on Climate-Related Financial Disclosures (TFCD) guidelines. However, just 17% have medium-term “robust quantified decarbonisation strategies”. Additionally, only 42% of businesses have “comprehensive” net-zero targets that cover all material emissions such as Scope 3. (edie)

TAX

Starbucks pays £5m in UK corporation tax despite £95m in profits

Coffee chain Starbucks has paid just £5.4 million in UK corporation tax in 2021 despite making a gross profit of £95 million. The company, which has faced years of criticism for paying limited tax in the UK, collected sales of £328 million from 1,000 UK stores in 2021. Starbucks reduced its tax bill through substantial “administrative costs” which amount to £78 million. While Starbucks has claimed to only be profitable 5 years between 2010 and 2021, tax experts say it is unclear whether the company is publishing a true reflection of the business. Paul Monaghan, the chief executive of the Fair Tax Foundation, said: “Starbucks’ main UK subsidiary maintained its tradition of paying little corporation tax in the UK, and this was once again down to the payment of hefty royalty and licensing fees to entities further up the corporate group. (The Guardian)

DIGITAL ETHICS

Meta paid consultancy to push negative media against rival TikTok

Technology company Meta, the owner of social media platforms Facebook and Instagram, solicited a public distrust campaign against rival platform TikTok. The campaign, launched by Republican strategy firm Targeted Victory, placed op-eds and letters to various publications, accusing TikTok of being a danger to American children, along with other accusations. Internal emails said Targeted Victory needs to “get the message out that while Meta is the current punching bag, TikTok is the real threat especially as a foreign owned app”. Campaign operatives were also encouraged to use TikTok’s prominence as a way to deflect from Meta’s own privacy concerns. Targeted Victory worked to amplify negative TikTok coverage through an internal document that included links to dubious local news stories citing TikTok as the origin of dangerous teen trends. (Washington Post)*

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