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Green Law Collaborating to Make a Difference

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Green Law Collaborating to Make a Difference EDITION 1 | FEBRUARY 2020 WHY CHOOSE HFW? GREEN LAW COLLABORATING TO MAKE A DIFFERENCE... Numerous domestic and world events have shone a spotlight on the green movement this year and this is understandably encouraging businesses to further align themselves with the environmentally conscious. Not only is public angst against the courts and public antipathy. environmental damage and In May last year, the Green Party regulatory intervention to push made considerable gains in green policies a reason for being the local elections in England ethically and environmentally and Northern Ireland, while the conscious, but now the courts Extinction Rebellion protests and appear to be taking a stand too. student activism promoted by Greta Thunberg, the young environmental In the United Kingdom (UK) advocate, have brought the green Supreme Court case Vedanta agenda into sharp focus. Resources Plc and Konkola Copper Mines Plc (Appellants) v Lungowe The latest reports that coal and Ors (Respondents), the court companies are now finding it held the UK-headquartered increasingly hard to access capital business could be held liable for the have resulted from a long list of operations of its Zambian subsidiary. banks that are now refusing to fund the industry. We now see the At HFW, we work in a number decommissioning of ships occurring of industries that have serious in more ethical and environmentally environmental priorities. We sensitive ways, while the International have seen the dramatic shift Maritime Organization has passed in corporate attitudes towards The 2020 global sulphur limit to population and planet health. “ The inspiration behind this further combat ship pollution. Reputationally, businesses are publication was the discovery that compelled to change. In the same Even our world leaders have way that the tobacco industry is recognised the urgent need for global as a sector focused global law firm moving away from the traditional, solutions to the climate emergency, we had a unique place at the table there is an environmentally-driven and will gather later this year in metamorphosis that is spreading Glasgow at the United Nations’ 26th of environmental responsibility. throughout the global economy. Conference of the Parties (known In a year when several major as COP26) to advance their shared Our clients looked to us to play businesses have suffered severe environmental ambitions. reputational damage due to Businesses should take the our role in making a difference. headline accidents and tragedies, green issue seriously because the we have seen a growing aliveness We pride ourselves on deliberately environmental tide is coming in. If to the green phenomenon. access to justice for environmental delivering difference.” Polluters and environmental claims is further promoted by the BRIAN PERROTT, HFW LITIGATION damagers are running the gauntlet courts, then corporates should be on against regulators, legislators, high alert. “ Although initially seen as a green initiative, biofuel subsidies contributed to growing deforestation in Indonesia and Malaysia by fuelling palm oil agriculture.” ALISTAIR FEENEY, COMMODITIES COMMODITIES End of days? The global appetite for biofuels is diminishing despite growth in some markets The appetite for sugarcane ethanol Although initially seen as a developed world may also achieve biofuel in Brazil is immense. green initiative, biofuel subsidies some growth because sugar beet In July, BP announced its joint contributed to growing deforestation agriculture has led to rising levels of venture with US agri-commodities in Indonesia and Malaysia by fuelling ethanol production. company Bunge to create BP Bunge palm oil agriculture. However, biodiesel’s lifespan looks Bioenergia, becoming the second Biofuels were once seen as a to be ending. The political tide largest player in the sugarcane benevolent green initiative that has turned against diesel due to ethanol biofuel industry in the could reduce reliance on global concerns about nitrogen dioxide country. In its announcement, BP oil supply. But then the US shale emissions and biodiesel has only highlighted that 70% of vehicles are phenomenon resulted in a glut of oil ever been used as a constituent part capable of running on ethanol and and gas, diminishing the hunger for of conventional diesel itself. indicated that the Brazilian market alternative fuel sources. for ethanol was 26 billion litres in 2018. Wider still, biofuels simply do not Media and public antipathy towards have economics on their side. It is But does this show global support deforestation has diverted political currently cheaper, in large part, to for biofuels? Elsewhere, moves to support for the sector, especially in produce conventional fuels and the promote the industry have run into the developed world. In emerging shale oil phenomenon has really trouble, not least because of the economies where biofuel agriculture reduced demand for alternative fuels. environmental impact created by has created thousands of jobs biofuels agriculture. There is no real commercial driver for and alleviated poverty, there is an increased production of biofuels Biofuel subsidies introduced by understandably greater backing without subsidies and the price of the European Union (EU) and the for the industry. Brazil is a classic gasoline and diesel is still quite low; United States (US) in the 2000s to example. We expect ethanol fuels to moreover, there is a far greater help farmers facing low food prices, be used more locally and regionally, global hunger for electric vehicles, had an unfortunate environmental with less of an emphasis on cross- which is likely to push biofuels consequence and now the global border trade. While ethanol use further to the margins. demand for biofuels and ethanol is more prevalent in emerging looks to be shrinking. markets, such as Brazil, the Making palm oil ethically palatable Tackling the dark side of the cocoa trade Environmental concerns should be assuaged by more ethical sourcing Consumer brands should heighten focus on ethics in supply contracts Palm oil has become an integral As a food commodity, palm oil Palm oil is an important component The historical harms caused exploitation and poor working supply chains, stamping out child commodity in global food clearly has a future, at least in the of processed foods, and as such, its by the cocoa trade are widely conditions in their supply chains. and slave labour, along with poor manufacturing and retail. Moreover, short to medium term. Whether production is likely to increase in recognised. The industry still has Some major consumer brands have working practices, there are still in the last 15 years or so it has environmental concerns will push the foreseeable future. To counter problems associated with low discovered the consequences of not many instances where these become a recognised raw material palm oil to the margins further this, government action in the wages, child labour and poor sufficiently handling the problem, industry ills have persisted. These for biofuel. At face value, it is a down the line is uncertain. Only an form of levies may be required. working environments. Consumers with a number of child labour class brands should be more explicit in valuable ingredient for greener outright ban or a tax could have a are increasingly seeking greater actions launched in the United their supply contracts to ensure There is still the very valid argument fuels and it has transformed local meaningful impact, although we transparency and ethical standards States in recent years. that counterparties recognise the that the palm oil industry is a and national economies, such as have already seen some retailers in cocoa-based products and brands magnitude of the issue and the major force for good in providing The economics make this an Malaysia and Indonesia, but the take a stance against the product. that are alive to this could improve potential commercial impact. They thousands of jobs and alleviating increasingly difficult issue. Global economic fortunes have come at a their market position. Those that should consider making ethical The UK supermarket chain Iceland poverty. Environmental concerns cocoa prices dropped by more catastrophic environmental cost. don’t will lose out. practices a virtue of the brand itself, announced last year that it was must be balanced against the than a third between 2016 and even if it adds a slight cost premium The destruction of carbon prohibiting palm oil in its own-brand economic cost of shutting down or A greater focus on transparency 2017, while disease and age is to the consumer. Investment in absorbing rainforests and other products. Its Christmas advert that over-regulating these industries. and due diligence on the supply damaging cocoa trees, according schools and education programmes natural habitats has captured the depicted the effects of deforestation, chain will help to eradicate to Fairtrade. This is piling on even The environmental argument is a will help to develop economies attention of governments and including the impact on the exploitation and inhumane more pressure on an agricultural legitimate one, and those that are and alleviate poverty, ensuring that public alike. For those that rely on orangutan population, was banned working conditions. The Fairtrade sector that is struggling to attract part of the palm oil sphere would do exploitation is diminished. Market the commodity, ethical sourcing because of its political overtones. Foundation has helped to improve a new generation of farmers and well to ensure that ethical practices forces are already dictating that will be pivotal to its ongoing use. working practices and ensure is reputed to use child and slave Retailers and manufacturers are are put in place, including mitigating brands ensure that these ethical that farmers and their employees labour. The average age of a cocoa Attitudes towards the product only going to become more attuned the effects of deforestation. approaches are at the heart of their are appropriately remunerated. farmer is over 50, says Fairtrade. have shifted enormously in to ethical sourcing as environmental, business strategies.
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