ESG issues in Beirut Blast

SVI start publishing today reports by Christina Lawandos on the current Lebanese situation from an ESG perspective. Christina is our contact in Lebanon, a local witness strongly engaged in sustainable topics. Unfortunately, what happened in Beirut has to do with very severe ESG topics: negligence, corruption, total lack of risk…

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Corporate misconduct over federal loans shadowing top-tier financial institutions

In a recent business memo, JPMorgan is to investigate clients and staff over illegally obtained federal aid. The largest US bank has nearly arranged $29bn of forgivable loans under the Paycheck Protection Program (PPP), a business loan initiative established as part of the $2.2 trillion economic stimulus package passed by US…

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Boohoo received good ESG ratings despite exploitation of modern slavery in its supply chain

The Manchester-based online fast-fashion retailer Boohoo has launched an independent review of its domestic supply chain after the Sunday Times published an investigation affirming that workers manufacturing its products at a factory in Leichester were paid less than half the minimum wage set by the British law. Additionally, the company…

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Wirecard scandal: the German fintech firm linked to Maltese gambling companies used to launder money for the Mafia

The German payment service provider Wirecard, which went bankrupt last June after its fraud scheme was unveiled, has also been linked to the Italian Mafia. According to a report published by the Financial Times, the company processed payments for two Maltese gambling companies that have laundered money for the ‘Ndrangheta.…

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International supply chains have been linked to Uighurs forced labor and human rights violation

Several investigations carried out in the last year by The New York Times, Wall Street Journals, and government agencies like the Australian Strategic Policy Institute, have revealed human rights violations enacted by the Chinese government to the detriment of the Uighur population in the Xinjiang region, located in the northwest…

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Morgan Stanley sued by former Head of Diversity for racial discrimination and retaliation

Last June, Marilyn Booker has pursued legal action against Morgan Stanley for “race and gender discrimination, retaliation and unequal pay”. After having worked more than 25 years for the American investment bank, 16 of which spent has Global Head of Diversity, she affirms she was fired in December 2019 after…

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Adidas’ top executive resigns due to employees’ complaints about racial issues

Karen Parkin, Adidas’ top executive and head of human resources globally, has resigned from the German sportswear company after a number of Black employees requested the supervisory board to review her and her past acts of racism and discrimination in the workplace. Her approach to addressing racial diversity issues has…

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The EU and the US are rethinking their non-financial disclosure requirements and announcing a series of new ESG-related interventions

As announced under the bold European Green Deal, the European Commission has launched a public consultation on the review of the Non-Financial Reporting Directive (NFRD). The NFRD sets out the rules for disclosing non-financial information by large companies as required by the Directive 2014/95/EU. The survey will remain open to…

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Proxy adviser’s downgrades cost companies 1% of market value

Evidence demonstrates that investors’ behaviours change when the largest proxy advisory firm downgrades public companies’ rating on governance ground. Professor Paul M. Guest and PhD student Marco Nerino of King’s Business School at King’s College London empirically demonstrate that Institutional Shareholder Services‘ (ISS) announcement of corporate governance ratings downgrades has…

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