Britain unveils “short and sharper” code for companies

The new code considers economic and social issues and will help to guide the long-term success of UK businesses. (AFP)
Updated 16 July 2018
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Britain unveils “short and sharper” code for companies

  • The new code emphasises the need for boards to refresh themselves, become diverse and plan properly for replacing top jobs
  • Company remuneration committees should also take into account workforce pay when setting director pay

LONDON: Companies in Britain must strive to rein in excessive executive pay and make boards more diverse under a new “short and sharper” corporate code, published on Monday.
The Financial Reporting Council (FRC) has updated its code of corporate standards for publicly listed companies, which must comply with it or explain to shareholders if they do not.
The new code comes as the watchdog, which oversees company governance standards and accountants, faces a review to see if it can uphold high corporate standards to maintain Britain’s attractions as a place to invest after Brexit.
British lawmakers have called for tougher corporate govenance standards following a row between food retailer Tesco and its suppliers and the collapse of retailer BHS and outsourcer Carillion. And shareholders have become much more active in terms of rejecting some executive pay deals.
“To make sure the UK moves with the times, the new code considers economic and social issues and will help to guide the long-term success of UK businesses,” FRC Chairman Win Bischoff said.
“This new code, in its short and sharper form, and with its overarching theme of trust, is paramount in promoting transparency and integrity in business for society as a whole.”
There is a new provision for greater board engagement with the workforce to understand their views — aimed at reinforcing an existing provision in law since 2006 which has had a patchy impact.
This, along with a requiremnent to have “whistleblowing” mechanisms that allow directors and staff to raise concerns for effective investigation, mark the biggest broadening of corporate standards in many years, the FRC said.
“The new code is much stronger on abilities to raise concerns in confidence,” said David Styles, FRC director of corporate governance.
It also emphasises the need for boards to refresh themselves, become diverse and plan properly for replacing top jobs.
It introduces a requirement for companies to explain publicly if a board chair has remain unchanged for more than nine years.
Company remuneration committees should also take into account workforce pay when setting director pay.
“To address public concern over executive remuneration... formulaic calculations of performance-related pay should be rejected,” the watchdog said.


UAE passenger jet makes long haul journey on locally produced biofuel

Updated 17 January 2019
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UAE passenger jet makes long haul journey on locally produced biofuel

  • The biofuel was produced from plants grown in a local saltwater ecosystem in Abu Dhabi
  • It can be refined using existing infrastructure and used with current engines and airport fueling systems

DUBAI: Etihad Airways flew the first commercial flight powered by locally produced sustainable fuel Wednesday, Emirati airlines Etihad Airways reported on their website from an announcement by the Sustainable Bioenergy Research Consortium (SBRC).

The Boeing 787, flying from Abu Dhabi to Amsterdam, used biofuel produced from the oil of Salicornia plants, which are grown in the Seawater Energy and Agriculture System (SEAS), in Masdar City near the UAE capital - Abu Dhabi.

The SEAS project is the world’s first desert ecosystem made specially to produce fuel and food in saltwater.

While Etihad is not the first airline to use biofuel in its aircraft, it is the first time in the UAE for the source of the biofuel to be grown and produced in the country.

“Etihad’s flight proves SEAS is a game-changer that can substantially benefit air transport and the world,” said Vice President of strategy and market development for Boeing International Sean Schwinn.

“The research and technology being developed shows significant promise to transform coastal deserts into productive farmland supporting food security and cleaner skies.”

The biofuel can be produced using existing refinery facilities, it can be blended with regular jet fuel, and used with existing aircraft, engines and airport fueling delivery systems

Biofuels were introduced for commercial flight use in 2011.

Since then nearly 160,000 passengers have flown on flights powered by a blend of sustainable and traditional jet fuels.

The water used for the SEAS project is drawn from fish and shrimp farmeries that produce food for the UAE.

The system is expected to expand to cover 2 mln square meters over the course of the next few years.