Tax, Ebay, Mandates, Skills & Sojo

1. A (wind) fall from grace

The increased demand for oil and gas as the world emerges from the pandemic (further compounded by supply concerns due to Russia's invasion of Ukraine) has created?bumper profits at BP , who earned nearly triple in the first three months of 2022 compared to the previous year. This has reignited calls for a one-off ‘windfall tax’ on North Sea oil and gas companies. Such taxes have already been implemented by other European governments to help tackle the energy crisis by redistributing the funds to support those being forced into fuel poverty due to soaring energy costs.

For us, the question is: why does it have to come to this? A windfall tax can be seen as a symptom of a failure of stakeholder capitalism, as an external intervention is required to rebalance the system. If oil and gas companies had truly committed to a viable sustainability strategy and listened and worked with all their stakeholders, this could have been avoided. For example, going further and faster on the transition towards renewable energy generation would have helped to build the infrastructure needed to reduce reliance on fossil fuels. Given consumer support for sustainable practices, such a shift would also have provided reputational benefits. Furthermore, if oil and gas companies had worked harder to understand their place within the broader system of supply and demand down to the end user, they might have realised the negative impact that soaring fuel prices was going to have earlier and led on addressing these. Instead, BP and other oil and gas giants have shown themselves to be focused on profit at the expense of people and the planet. And if a windfall tax is implemented, they won’t even keep these profits.

This is a clear example of the pitfalls of failing to realise the impact that all stakeholders have on a business’s success. It’s ironic that in this instance one of the stakeholders that may actually suffer is the shareholder.

2. (Im)perfect solution

By now we’re all pretty well aware of the issues associated with?fast fashion . And we know we should be doing our part to minimise the impacts of our clothing purchases – whether that’s shopping second hand, extending the lifespan of your clothing (such as through this week’s Goods), or borrowing rather than buying.

Now, thanks to eBay, we have one more option to add to the list: eBay Imperfects.

Launched last month,?eBay’s Imperfects ?partners with major brands to give new life to clothes, shoes and accessories that cannot be sold as new, due either to minor defects or prior use as display items. Rather than letting these items go to waste (and the unfortunate reality is that much unsold merchandise?does go to waste ), eBay Imperfects clearly documents any defects or imperfections and allows shoppers to make their own minds up about these products. Think of it like supermarkets wonky fruit and veg, but for clothes.

It's great to see eBay launching new initiatives to drive a more circular and less wasteful economy. But even better is to see brands waking up to the fact that they don’t need to?burn billions’ worth of excess stock ?to protect their brand image. In today’s consumer landscape, nothing could be better for your brand than taking action to reduce your environmental impact.

And when the result is a good deal for both shoppers and the planet, what’s not to love??

3.?Fiduciary duty?v2

The social and environmental impact of investments is increasingly recognised as an important locus of responsibility.

While you can take full control of this as an individual, this can sometimes be less straightforward for those organisations, such as charities, that have a legal duty to maximise financial returns. For the health charity seeking to divest from tobacco or the environmental charity wanting to support the renewable energy transition, this can create uncomfortable dissonance.

That was until the High Court made a?landmark ruling ?last week, following a campaign by Mark Sainsbury and two Sainsbury family charitable trusts. But the ruling isn’t just about approving these charities’ investment policies: it has also updated the?interpretation of case law ?last reviewed in 1992, when the earth was?about 0.7C cooler . The Charity Commission has been waiting on the results of this case to publish its new guidance on ethical investing, underscoring its significance.

This isn’t just good news for charities’ impact. Allowing investment decisions to reflect a broader set of priorities can have wider benefits, such as allowing them to better manage reputational risks associated with investments.

This is a significant step, redefining fiduciary duty to make it fit for stakeholder capitalism. With organisations of all shapes and sizes forging their paths toward responsibility, we are excited to see measures that put more power to support all stakeholders in the hands of organisations.

4. Green is booming

The sustainability jobs market is?booming ?(and on that note,?we are also hiring ). As businesses make a welcome corporate shift towards lower carbon, more responsible operations, the market for such jobs doesn't seem like it will be slowing down anytime soon. In fact, the UK government has pledged to create two million green jobs by 2030, to support its net zero goals.

But working to transition to a more sustainable economy can’t just be about well-paid engineering roles in high tech industries or professional services. This shift needs to reflect an entire systems change that democratises smart sustainable choices at every level of experience and training, in every department, of your business, from your carpenter to your CEO. This is exactly what a new?report ?from Deloitte emphasises: the need to build in green skills into all sorts of roles.

The transition to a green economy will not be complete if only those with "green" jobs are working towards it. Although these roles are important, alone they will not be successful in creating the change we need. As the report says, bricklayers know how to lay traditional bricks, but will need to learn how to lay lower carbon bricks - which are usually thinner - to support the effort towards lower carbon housing. Everyone needs new skills in the green transition.?

This?report ?is great and worth a read. However, we would have liked to see a focus on broader dimensions of sustainability aside from just the green elements. A just transition means focusing on social issues, including inequality, opportunity and community cohesion. We can't consider working towards greener food production workforce and system without considering the social change it requires or implications it might have, which in turn will influence the success or failure of such a system.

5. Find your mojo with Sojo

It’s a little too easy to forget and neglect a piece of clothing you once frolicked in and flaunted. But don’t let a fray, a rip, or a broken zip send your favourite frock to the tip because there’s a solution – meet?Sojo .

Clothing has become disposable. We’ve written about the classic cycle of shopping?before ?(buy new, use for a while, bin) and there seems to be slow movement to reduce the environmental impacts of fashion. Waste in the fashion industry is remarkable: western families throw an average of 30kg of clothing away each year, and only 15% is recycled or donated and the rest goes to landfill or is incinerated.

Sojo ?is part of the global social movement combatting waste – by boosting the longevity of clothing through repair. They are a community of expert seamstresses that give you the chance to “wear and love the clothes that are uniquely yours”. The idea is simple. Download the app, place an order for all or any types of repairs and alterations, drop your clothes off and they’ll be returned all fine and dandy.

Not only does Sojo provide a tool to reduce waste, but it highlights a couple of learnings: the carbon reductions in staying local, the importance of supporting local talent and repurposing perfectly fine garments.

We say embrace your old and imperfect clothes. Know there is someone out there to make your outfits work for you. Sojo is a way for us to boost and practice the circular economy.

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