A round-up of the latest business news, including Ford, Total and Atlas Copco.
Atlas Copco has revised the key performance indicators (KPIs) for its non-financial priorities. The manufacturer of compressors and air treatment systems identified five priorities last year, among them one to improve resource efficiency. The new KPIs in this area include the continued reduction of energy consumption from operations in relation to cost of sales and an increase in the renewable energy used. Business units must also drive down transport emissions and water consumption in water risk areas.
Ford has revised its water use targets. The company is aiming for a 72% reduction in per-vehicle water usage by 2020 compared with 2000. It said the target was the next step in its new long-term water conservation plan, which is to use no drinking water in manufacturing processes. Ford reported that it had saved 377 billion litres of water between 2000 and 2015 (a 61% decrease) and aims to save a further 30% by 2020.
Total has announced plans to install solar panels on the roofs of 5,000 service stations worldwide over the next five years. The French oil firm is investing $300m to install 200MW of solar capacity, which will reduce its carbon emissions by 100,000 tonnes a year and cut its annual electricity bill by $40m.
Legal & General Investment Management (LGIM) has launched Future World Fund, a global equities fund to address investment risks associated with climate change. It aims to reduce investment in companies with worse-than-average carbon emissions and fossil fuel assets, and increase backing for firms that generate revenue from low-carbon opportunities. HSBC Bank UK Pension Scheme is one of the first investors to choose the fund. ‘This is a mainstream fund, the new normal,’ said the scheme’s chief investment officer, Mark Thompson.
The International Finance Corporation (IFC) has issued a bond that gives investors the option of being repaid in either carbon credits or cash. The fund will raise $152m to help to prevent deforestation in developing countries, says the IFC. Investors choosing the first option can retire the credits to offset emissions, or sell them on the carbon market.
