Today’s ESG Updates
- Italy Probes Revolut on Practices: Regulators allege Revolut misled users on “zero-fee” shares and unfairly blocked account access.
- Expansion Plans May Await Heathrow Airport: British airport seeks to add 10M passengers by 2031 through terminal upgrades and higher airline fees
- MP Materials Strike Rare Earth Deal with U.S.: Pact aims to boost U.S. production and cut reliance on China for processing
- Saudi Oil Exports to China Climb: Aramco to ship 51M barrels in August, highest in two years amid rising demand
Italy probes Revolut over alleged unfair practices related to investment services
Italy’s competition authority (AGCM) has recently opened a probe into some units of Revolut for alleged unfair commercial practices related to its investment and banking services. AGCM stated that Revolut allegedly misled users and promoted investments in shares by emphasising the absence of commissions while omitting key information. AGCM also disclosed that the company did not specify that its so-called zero-fee products included fractional shares, which differ significantly from whole stocks. Furthermore, Revolut allegedly failed to inform clients with investments in crypto assets that they would not be able to change specific risk-management settings. The company also adopted an aggressive approach in suspending and blocking financial accounts, subsequently preventing users from accessing their cash and related services for extended periods. Revolut has promised full cooperation with AGCM, but refrained from making further comments due to the ongoing probe. Under Italian legislation, breaches of consumer rights rules can lead to company fines ranging from €5K to €10M. Businesses can rely on ESG solutions to stay informed on key policies and regulations.
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Further reading: Italy probes Revolut over alleged unfair practices in investment services
UK’s Heathrow Airport says mini expansion may add 10M passengers by 2031
Britain’s Heathrow Airport has recently presented its 2027 – 2031 plans to the Civil Aviation Authority, and states that it may serve an additional 10M passengers per year by 2031 by making changes to existing terminals if it can increase fees. The British government has expressed its desire for Europe’s busiest airport to build a new runway in what would be a major expansion, but that is not expected to be ready until 2035 at the earliest. In its 5-year plan, Heathrow stated that it could expand before the new runway is built by upgrading facilities to add passengers, and an extra 10M passengers per year would be a 12% increase from current numbers. The expansion plan would require the fees that airlines are charged to increase to £33.36 per passenger, compared to the current average charge of £28.46 per passenger. The CAA, which regulates airport charges, will study the plan before responding.
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Further reading: UK’s Heathrow says mini expansion could add 10 million passengers by 2031
MP Materials signs multibillion-dollar deal with U.S. to loosen China’s grip
MP Materials (MP) has recently announced a multibillion-dollar deal with the U.S. government to increase the output of rare earths and to help break China’s grip on the minerals, which are vital for military applications, electric vehicles and wind turbines. The U.S. Department of Defence (DoD) will become the biggest shareholder in MP, the only integrated U.S. producer of the 17 minerals, of which China has control over 90% of the global processed output. China imposed restrictions in April, and companies struggled to source rare earths. There was a 75% drop in rare earth magnet exports from China last month, which led to suspended production for some auto companies. The DoD will guarantee a floor price for key rare earths at nearly twice the current Chinese market price, and MP will cease all material shipments to China for processing. MP plans to build a new factory, set to launch in 2028, for rare-earth permanent magnets, increasing the company’s output to 10,000 metric tons a year.
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Further reading: MP Materials seals mega rare-earths deal with US to break China’s grip
Sources reveal that Saudi oil exports to China will rise to an over two-year high in August
Trade sources say that Saudi Arabia’s crude oil exports to China are projected to rise to the highest in more than two years in August. State oil firm Saudi Aramco will ship approximately 51M barrels or
1.65M barrels per day (bpd) to China in August. Data from Reuters and Kpler show that this supply is 4M barrels higher than July’s allotted volume, and the highest since April 2023. Saudi Arabia, which is the world’s largest oil exporter, has hiked August prices for Asian and European buyers by more than $1 per barrel as domestic crude oil demand is expected to rise, reducing exports while Chinese consumption is likely to surge. The increased supply to China follows the agreement by the OPEC+ to raise production by 548,000 bpd in August as the group rescinds earlier voluntary cuts. To keep up with the latest industry developments, businesses can turn to ESG solutions.
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Further reading: Saudi oil exports to China to rise to over two-year high in August, sources say
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the cover photo: Image of Revolut logo on mobile, Oct. 25, 2024. Cover Photo Credit: appshunter.io
