SUPPLY CHAIN

Nestle to stop sourcing from Indonesian palm oil producer AAL

Food giant Nestle plans to stop sourcing from subsidiaries of Astra Agro Lestari (AAL), a major Indonesian palm oil producer accused by environmental groups of land and human rights abuses. Following an independent assessment, Nestle instructed its suppliers to ensure palm oil from three subsidiaries of AAL no longer enters its supply chain. It did not specify the claims against AAL other than to say it had been on its ‘grievance’ list for several months. Nestle expects it will not be using any palm oil from AAL subsidiaries by the end of 2022. AAL denied the accusations made against it. Friends of the Earth said Nestle’s move is an important “first step” and called on consumer majors Proctor & Gamble, Hershey’s, Kellogg’s, Unilever and PepsiCo to follow suit. (Reuters)

CLIMATE CHANGE

Nord Stream rupture may mark biggest single methane release

The ruptures on the Nord Stream natural gas pipeline have led to what is likely the biggest single release of climate-damaging methane ever recorded, the United Nations Environment Programme (UNEP) said. A huge plume of highly concentrated methane was detected in an analysis of satellite imagery by researchers associated with UNEP’s International Methane Emissions Observatory (IMEO). Researchers at GHGSat estimated the leak rate from one of four rupture points was 22,920 kilograms per hour, roughly equivalent to burning about 630,000 pounds of coal every hour. The total amount of methane leaking from the pipeline system may be higher than from a major leak that occurred in 2021 from offshore oil and gas fields in the Gulf of Mexico, which spilled around 100 metric tonnes of methane per hour. (Reuters)

DIVERSITY & INCLUSION

Virgin Atlantic staff now free to choose which uniform to wear

Airline Virgin Atlantic’s crew, pilots and ground staff can now wear whichever of its uniforms they feel most comfortable in, regardless of the original male or female design. The airline has announced a gender identity policy that lets its staff choose which of the outfits they wear to work – “no matter their gender, gender identity or gender expression”. Virgin said the move was to reflect the diversity of the workforce, and to reinforce its branding campaign as welcoming and inclusive. The airline will also start using optional pronoun badges for crew and passengers, who can request them at check-in to ensure people use their preferred pronouns. Its ticketing system will also allow people whose passports have gender neutral markers to travel using those gender codes. (The Guardian)

STRATEGY

New climate risk methodology released for asset owners & investors

A new tool has been launched with the aim of helping asset owners and investors to assess the risk posed to critical infrastructure by climate change. Engineering consultancy Mott Macdonald and investor body Coalition for Climate Resilient Investment (CCRI) have launched a first-of-its-kind guide on how to evaluate and quantify physical climate risks to infrastructure. The ‘Physical Climate Risk Assessment Methodology’ draws from expertise from climate data providers, resilience practitioners, asset managers and investors. The consultancy said the guide highlighted the positive returns that could be generated by investing in climate resilient assets. Mott Macdonald said it had tested the methodology on five real-world infrastructure assets, including a wind farm in East Asia and a hydropower plant in Africa. In all instances, the exercise yielded a “resilience dividend”, it said. (Business Green)*

GOVERNANCE

Most US corporates do not link executive pay to climate action

Shareholder organisation As you Sow has published analysis of the links between executive pay and ESG at 47 of the largest listed companies in high-carbon sectors in the US. More than half of these companies (25 of the 47) have not explicitly linked any climate-related action or target to the remuneration of their chief executive. Of the firms which do make this link, only six link compensation to a quantitative and time-bound climate goal. Only one firm, Xcel Energy, links compensation to a quantitative target to reduce absolute emissions. The analysis concludes that no scoped company is “adequately” reflecting the need to align with a 1.5°C temperature pathway in its CEO remuneration. As You Sow said a lack of consistent disclosures made it difficult to assess CEO remuneration linkages with ESG. (edie)

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