Tuesday, December 21, 2010

The Greening of Big Business

I am delighted to welcome Robert Wyse Jackson (graduate of Trinity College Dublin and postgraduate student at the London School of Economics) as a guest contributor to Envirolarm:


Capitalism – the arch nemesis of Mother Nature! At least, that’s what environmentalists would like you to believe. Countless environmental NGOs and activists have argued that immediate and radical social change is imperative, or the environment will pay the price for excessive corporate greed. These assertions might have truthful elements, but it is increasingly apparent in modern business that large corporations are waking up to the financial and reputational risks of failing to go green.

On 20th April 2010 an explosion on the Deepwater Horizon drilling rig killed 11 men and sent millions of gallons of oil gushing into the Gulf of Mexico. The effect of the explosion has been felt on the coasts of Florida and Louisiana, where beautiful beaches have been swamped by black oil, causing huge environmental impact. Subsequently, there was widespread public and political outrage directed towards the rig’s owners, British Petroleum (BP). At the end of October, BP announced that it expects the crisis to have cost it over $40 billion dollars in clean up costs, financial penalties and legal costs. In addition, vast sums of money have been spent on repairing BP’s tattered reputation to consumers which threaten to harm BP’s long term profitability. The effect of the crisis was manifest in BP share prices, which had fallen by 35% on the FTSE.

What is evident from the BP crisis is that it makes good business sense for corporations to invest in the environment. Many corporate leaders have woken up to the loss of public trust in business, and are taking an active role in conducting their businesses in environmentally sustainable ways. This contrasts heavily with the failure of governments to agree new steps to cut greenhouse gases. Last month, Unilever launched an ambitious plan to halve the environmental impact of its products by 2020. Coca Cola has implemented a programme of water conservation to protect the most important ingredient in its production process. In addition, many banks have recently adopted the equator principles, a voluntary set of standards for determining, assessing and managing social and environmental risk in project financing. By signing up to this agreement, banks commit to not providing loans to projects where the borrower will not or is unable to comply with their respective social and environmental policies and procedures that implement the equator principles.

These are examples of voluntary initiatives by large corporations to address their corporate social responsibilities. They represent an increasing awareness by large corporations that it increasingly makes good business sense to conduct their operations in an environmentally sustainable manner. The BP oil crisis has demonstrated to corporate leaders the huge financial and reputational risks of conducting their business without due regard to the environment. The scepticism towards big business after the financial crisis will only increase corporate awareness of the need to be perceived as environmentally friendly by consumers.

As corporate responsibility increases in business, capitalism will increasingly be viewed less as an enemy to Mother Nature and more as a friend.

Monday, December 20, 2010

Freedom to Roam and Public Rights of Way

Henry David Thoreau wrote in his journal in 1842, ‘I am amused to see from my window here how busily a man has divided and staked off his domain. God must smile at his puny fences running hither and thither everywhere over the land.’

Mr Justice McMahon’s judgment (20th Dec 2010) in the Lissadell public right of way case would certainly have brought a smirk to Thoreau’s face. Documentary evidence dating back 200 years, two Senior Counsel asserting private property rights over their demesne and the public’s desire to keep on strollin’ in the free world. This case had it all – a true slobber-knocker.

Eddie Walsh and Constance Cassidy sued Sligo County Council, claiming slander to their title to Lissadell and improper interference with their business interests. They have been unsuccessful. The gist of the High Court’s ruling is that the public has a right of way on the avenues of Lissadell estate in Co Sligo.

The Court established that the onus lay on Sligo County Council to demonstrate that the previous owner had dedicated a right of way across his lands to the public. To discharge this burden, the defendant County Council called 25 witnesses to give evidence as “users as of right.” Judge McMahon was convinced by their testimony – a picture emerged “that since the early 1950s at least many people, who had no specific business or other reason to be there, entered and exited the estate through all four entrances.” Furthermore, the fact that the past owners of the land did not object was interpreted as acquiescence and thus acceptance of the practice.

The evidence offered by people from the town and with long-lasting familial connections to the estate seems to have been decisive to the conclusion reached by McMahon. As a result, it would be inappropriate to exaggerate the importance of this judgment for the future, given how fact-specific the case was. The Court’s response is a positive outcome for those in Sligo. For the rest of us, it offers hope of a possible trend in the courts’ treatment of public rights of way cases that encourages people to open up their land and let others enjoy the countryside.

The Pipe - Shell's Law

‘The Pipe’ is a gripping, albeit one-sided, documentary about the struggle between big business and the interests of a local community.

The story will be familiar to most. It all began around 1996, when the Corrib natural gas field was discovered. Development of the project by Shell began in 2004, with a proposal to place an offshore pipeline that would run through the community of Rossport to the refinery at Bellanaboy. This plan was delayed in 2005 by local opposition – five men were jailed by Finnegan J. for contempt of court after refusing to obey a temporary court injunction forbidding them to interfere with work being undertaken by Shell on their land (The Rossport 5).

The film begins in the aftermath of these events. It focuses on the experiences of Willie Corduff and Pat O’Donnell, but also portrays the Rossport community’s campaign for change (for the gas to be refined at sea, rather than inland, as is done with Ireland’s only other producing gas field off Cork) and how divisive this debate is. Enter Maura Harrington.

The residents’ claim that the proximity of a natural gas pipeline is a health and safety risk to local residents and livelihoods is a compelling one. However, without input from Shell or evidence from a more objective 3rd party, it is difficult to assess the legitimacy of these fears.

It’s certainly well worth watching.

Here’s the trailer: http://www.youtube.com/watch?v=A0JeVbrDx5M