Soapbox Snippets September 2024
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Article Type
Sustainability Soapbox
Topics
Responsible Investing, Opinion
Published
October 16, 2024
Read time
4 mins
Author
Aegon AM Responsible Investment Specialists
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Next takes a step forward

In a significant ruling, over 3,500 employees at Next have achieved a major victory in their six-year equal pay battle, potentially receiving more than £30 million in compensation. The Employment Tribunal determined that Next failed to justify the lower wages paid to predominantly female retail consultants compared to their male counterparts in warehouse positions.

While the tribunal did not find direct discrimination, it ruled that the pay disparity constituted indirect discrimination, as the company’s financial justifications were deemed insufficient. This ruling may have implications for similar claims against major UK supermarkets such as Tesco and Asda, where gender pay gaps are also being challenged.


Next intends to appeal the decision, arguing that it raises important legal principles. Legal experts suggest that this case may encourage other employees to pursue equal pay claims, emphasising that employers must provide compelling reasons for any pay differences that do not involve gender discrimination. The ruling highlights the ongoing need for fair pay practices across the retail sector.

 

Clearing the skies

A new study has revealed that the way airspace is currently managed in Europe is causing unnecessary fuel consumption, higher CO2 emissions, and longer flight times. By using artificial intelligence, a study looked at how these inefficiencies have impacted operations over the past year. The results were eye-opening: it was found that modernising airspace could help cut emissions by more than 10%, which translates to around 663,000 tonnes of CO2 each year, in the operations of the sponsor of the study, Easyjet.

 

The countries that stand out as needing the most improvement include the United Kingdom, Italy, France, Spain, and Switzerland. The analysis showed that carbon emissions spike during all phases of flight, but the descent phase is particularly problematic due to outdated designs in lower airspace near airports.

 

The company is calling for urgent reforms to modernise airspace; arguing that these changes could play a crucial role in helping the aviation industry meet its decarbonisation goals. Furthermore, emphasising that updating these systems isn't just about reducing emissions; it could also enhance the overall flying experience for passengers by cutting down on delays and improving efficiency.

 

California - too hot to insure?

Allstate has received approval to raise its California homeowner’s insurance premiums by an average of 34% starting in November — the largest rate increase this year amid the state’s insurance crisis. This hike, effective November, will affect over 200,000 households across the state, with some policyholders seeing increases of over 100%.

 

The rate increase comes as a response to rising home values, escalating repair costs, and more frequent severe weather events linked to climate change. This decision reflects ongoing challenges within California's insurance market, particularly for those living in wildfire-prone areas.

 

Consumer advocates have raised concerns about the transparency of the rate-setting process and the potential financial strain on families already grappling with high living costs.

 

Investors urge FTSE 100 companies to vote on climate plans

Investors managing £1.6 trillion in assets, led by the Local Authority Pension Fund Forum (LAPFF) and CCLA, have called on 76 FTSE 100 companies to hold votes on their climate transition plans at upcoming annual general meetings (AGMs). Many companies have not conducted such votes in three years, prompting concerns over transparency. Currently, only 20% of FTSE 100 firms offer this opportunity. LAPFF chair Doug McMurdo emphasised the importance of AGMs for shareholders to support or question boards on climate strategies, reflecting a growing demand for robust climate governance among major corporations.

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Aegon AM Responsible Investment Specialists
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