Unilever to scale back environmental and social pledges

Environmental groups say bosses should ‘hang their heads in shame’ as firm bows to pressure from shareholders to cut costs

Unilever is to scale back its environmental and social aims, provoking critics to say its board should “hang their heads in shame”.

The consumer goods company behind brands ranging from Dove beauty products to Ben & Jerry’s ice-cream was seen as perhaps the foremost proponent of corporate ethics – particularly under the tenure of its Dutch former boss Paul Polman.

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The Body Shop collapses into administration in UK

Hundreds of jobs at risk less than three months after cosmetics chain was bought by German firm Aurelius

The Body Shop has collapsed into administration in the UK, less than three months after it was taken over by a private equity company, in a move that puts hundreds of jobs at risk at the cosmetics chain.

Aurelius, the German buyout company that bought The Body Shop for £207m in November, said it had been unable to revive the fortunes of the business after dismal trading over Christmas and new year.

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The Body Shop files intention to appoint administrators

Process likely to lead to job losses and store closures, and threaten source of sales for global network of small farmers and producers

When Anita Roddick sold The Body Shop in 2006, she left behind not just a thriving cosmetics and skincare empire but living proof that a business could follow strict ethical guidelines and still make healthy profits.

But on Monday, the private equity-owned company filed the intention to appoint administrators.

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Let boardrooms look beyond shareholder returns to drive productivity, report urges

Adapting business laws to include benefits other than profit in decision-making could add £149bn to UK economy, says Demos thinktank

Britain’s economy could receive a £149bn boost from a change to UK business laws that would ensure companies put social, economic and environmental benefits at the heart of their decision-making, according to a report.

With the UK on course for the second lowest growth rate in the G7 group of leading economies in 2023, the study by the thinktank Demos said it was clear that cutting taxes or raising public spending had not been effective at driving economic growth.

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Revealed: UK local councils deposit taxpayers’ cash in Qatar state bank

Town halls and finance firms say they support LGBT rights but send money to World Cup host where homosexuality is illegal

The rainbow flag flew above the Bourne Corn Exchange as South Kesteven council embraced LGBT history month.

A year after voting against such a gesture the Lincolnshire local authority declared itself pleased “to celebrate and recognise the […] rights of lesbian, gay, bisexual and transgender people”, hoisting the flag outside its headquarters in 2019.

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‘I’m happy to lose £10m by quitting Facebook,’ says Lush boss

Losing 10m followers on sites such as Instagram is a price worth paying for co-founder of ethical beauty empire

Quitting social media is hard to do, even when it doesn’t cost you anything. So when Lush’s chief executive, Mark Constantine, shut its thousands of Facebook, Instagram, Snapchat and TikTok accounts on Friday, the biggest shopping day of the year, he knew dropping off millions of customers’ screens would damage his business.

Its Facebook and Instagram accounts alone had 10.6 million followers and the void will result in an estimated £10m hit to sales but Constantine, one of the business’s co-founders, said it had “no choice” after whistleblowers called attention to the negative impact social media sites such as Instagram are having on teenagers’ mental health.

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Out of style: Will Gen Z ever give up its dangerous love of fast fashion?

As a generation, they care deeply about the environment and sustainability - but are also under pressure to change their wardrobe constantly. Which impulse will win?

Alessia Teresko, a 21-year-old student from Nottingham, seldom wears the same outfit online twice. Which is why, last month, for a friend’s birthday, she bought a minidress: a 70s-style Zara dress in a swirling print, for which she paid £27.99. On Instagram, she posted a photograph of herself in her new dress, with a caption that read “Besties wknd”. The post racked up 296 likes and with it, Teresko’s Zara purchase was sent to the giant wardrobe in the sky. (Namely, the Depop account, where she resells the clothes she no longer wears.) “I can’t take another picture in it because I already posted it,” says Teresko. “I know that sounds very superficial.”

In Edinburgh, 23-year-old Mikaela Loach, a student and climate justice activist, understands the pressure that Teresko is under. “Honestly,” she says, “as someone with a platform, even I feel pressure to be wearing different clothes online.” She buys her clothes secondhand. “Only if I can’t find it secondhand,” Loach says, “will I buy something new and then make sure I’ve done rigorous research on the company.”

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The truth about fast fashion: can you tell how ethical your clothing is by its price?

To find out the true production cost of a garment is a tortuous process. Here is what you need to know to buy clothes with a clear conscience

What is the true cost of a Zara hoodie? In April 2019, David Hachfeld of the Swiss NGO Public Eye, along with a team of researchers and the Clean Clothes Campaign, attempted to find out. They chose to analyse a black, oversized top from Zara’s flagship Join Life sustainability line, which was printed with lyrics made famous by Aretha Franklin: “R-E-S-P-E-C-T: find out what it means to me”. It was an apt choice, because the idea was to work out whether any respect had been paid to the workers involved in the garment’s production, and how much of the hoodie’s average retail price, €26.66 (£22.70), went into their pockets.

This was no simple assignment. It took several people six months, involved badgering Zara’s parent company, Inditex, over email, slowly getting limited information in return, and interviewing dozens of sources on the ground in Izmir, Turkey, where the garment was made. The researchers analysed financial results and trading data, and consulted with experts in pricing and production. It was, Hachfeld says on the phone, with dry understatement, “quite a huge project”.

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‘The Queen’s bank’ Coutts joins the ranks of ethical brands

Despite chequered history the 329-year-old private bank has secured the sought-after B Corp status

Private bank Coutts will offer carbon credits and green mortgages to its ultra-wealthy clients after becoming one of the largest UK banking brands to secure B Corp status.

Coutts, known as the Queen’s bank for having served every member of the royal family since George IV, is trying to bolster its environmental and social reputation after being dogged by a series of scandals in recent years, including sexual harassment allegations against its former star banker Harry Keogh, who was sacked in 2018. The bank was also fined by Swiss regulators in 2017 over alleged money laundering and for illegally profiting from transactions associated with the 1MDB scandal.

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Barcelona street sellers take on Nike with own-brand trainers

Ethical streetwear co-operative Top Manta says profits will help migrant vendors ‘become legal and work for a decent wage’

After years of selling cheap copies of designer shoes and handbags, Barcelona’s street vendors have set up a co-operative and launched a line of trainers under the brand name Top Manta.

Unlike an earlier attempt to establish a brand in 2017 by sticking a logo on shoes imported from China, the trainers are made in Alicante in Spain and Porto in Portugal.

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Tesco and Next among brands linked to labour abuses in India spinning mills

Supermarket says it will investigate report on forced labour in Tamil Nadu garment chain and ensure improvements are made

Tesco said it has found labour abuses in its garment supply chain in southern India after receiving evidence of widespread forced labour involving migrant women in cotton spinning-mills across Tamil Nadu.

The supermarket said that one of its supply chains is linked to a spinning mill included in a new report by NGOs Somo and Arisa that found evidence across the region of multiple labour abuses including deception, intimidation and threats towards vulnerable female workers, abusive working and living conditions and excessive overtime.

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Investors drop Brazil meat giant JBS

Top investment house delists world biggest meat producer over lack of commitment to sustainability issues

The investment arm of northern Europe’s largest financial services group has dropped JBS, the world’s biggest meat processer, from its portfolio. The Brazilian company is now excluded from assets sold by Nordea Asset Management, which controls a €230bn (£210bn) fund, according to Eric Pedersen, its head of responsible investments.

The decision was taken about a month ago, over the meat giant’s links to farms involved in Amazon deforestation, its response to the Covid-19 outbreak, past corruption scandals, and frustrations over engagement with the company on such issues. “The exclusion of JBS is quite dramatic for us because it is from all of our funds, not just the ones labelled ESG,” Pedersen said.

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Ethical labels not fit for purpose, report warns consumers

Schemes including Fairtrade and FSC may serve to mask human rights abuses and allow government inaction, study claims

Many of the world’s leading certification standards are not only failing to improve the ethical conduct of large corporations but are serving to entrench abusive business practices, a damning new report argues.

The study of 40 global voluntary initiatives, including emblematic on-pack labelling schemes such as the Forest Stewardship Council (FSC) and Fairtrade International, identifies multiple failures in what it refers to as a “grand experiment” in corporate accountability.

“These kinds of initiatives are not effective tools for holding corporations accountable for abuses or for protecting rights holders against human rights violations,” says Amelia Evans, executive director at MSI Integrity, the US-based human rights group behind the research.

Related: Rainforest Alliance certifying unethical pineapple farms, activists claim

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