The REP Wrap: CEOs have already out-earned workers in 2024
Your weekly summary of corporate sustainability news.
The High Pay Centre estimates that FTSE 100 CEOs have already earned more in 2024 than the average UK worker will this year. The threshold was passed at 1pm yesterday, according to research from the think tank, which is based on information published in companies’ annual reports and government statistics about pay levels across the UK economy. Median FTSE 100 CEO pay (not including pension) currently stands at £3.81m – 109 times the median full time worker’s pay of £34,963. That’s a 9.5% average increase since March 2023, compared with 6% for workers.
The five largest listed oil companies are expected to distribute more than $100bn in dividends and share buybacks for 2023, according to the Institute for Energy Economics and Financial Analysis. BP, Exxon, Chevron, Shell and Total have been criticised for the bumper payouts during an energy and cost of living crisis.
BP and Equinor have scrapped a planned offshore wind venture in the US, in the latest sign that rising interest rates and supply chain disruptions are wreaking havoc in the industry. The pair were due to sell power from the 1.26GW Empire Wind project to New York state, but said this week that authorities have permitted them to “reset” the deal.
There is less than one month left to respond to a consultation on the EU’s sustainability reporting standards. EFRAG, the body helping to develop the rules, published three draft documents before Christmas, relating to materiality assessments, value chain assessments and the data points used under the European Sustainability Reporting Standards (ESRS). An explanatory note on the data points was also published. The draft guidelines are all open for feedback until February 2nd. Meanwhile, the ESRS was published in the Official Journal of the European Union on December 22nd.
The maritime sector is now covered by the EU’s Emissions Trading System. Starting this week, emissions from large ships that use EU ports will be subject to a carbon price if they’re transporting more than 5,000 tonnes of goods or passengers. Emissions will be phased in between 2025 and 2027. Eventually, offshore activities such as oil exploration or marine construction will also be covered. The maritime sector represents around 4% of the bloc’s entire CO2 emissions.
Norwegian pension fund KLP has blacklisted 12 companies listed in Gulf States over concerns about “an unacceptable, sector-specific risk of contributing to human rights abuses”. Emirates Telecom Group, Saudi Telecom, Emaar Properties, Aldar Properties, Etihad Etisalat, Mobile Telecommunications (Kuwait), Dar Al Arkan Real Estate Development, Ooredoo QPSC, Mobile Telecommunications (Saudi Arabia), Mabanee and Barwa Real Estate were all axed from KLP’s emerging markets portfolios in December. The world’s largest oil company, Saudi Aramco, was also excluded, but this was on climate grounds.