Today’s ESG Updates
- Orsted Cuts 2,000 Jobs, Shifts to EU Focus: Offshore wind giant restructures after U.S. setbacks, citing rising costs and political hurdles
- Rotterdam Port Backlog Grows Amid Lashers’ Strike: Ongoing labor dispute and recent storm double ship queue, with further delays possible
- Germany’s Merz Meets Automakers Without EU Ban Consensus: Chancellor engages car execs despite divide on 2035 combustion engine phase-out
- Shein Tightens Controls After Regulatory Fines: Fast-fashion retailer boosts compliance efforts following penalties for privacy breaches and greenwashing
Orsted will cut a quarter of its workforce and focus on the EU
Orsted will slash approximately 2,000 jobs by the end of 2027 and shift its focus to the EU market following setbacks in the U.S.. Despite its rapid expansion over the past decade, increased costs from supply chain disruption and inflation, alongside the impact of Trump’s actions against offshore wind projects, have posed significant challenges to the world’s largest offshore wind farm developer. The company has stated the job cuts would coincide with a decline in construction activities and help boost competition, as it moves to concentrate more of its activities on the European market. Orsted’s CEO backs that political support for offshore wind is driven by energy security and the need for electrification, with industry suppliers and contractors also focusing on the EU, while oil and gas companies step back from renewable energy. Companies working towards their climate goals can also rely on ESG solutions to help ensure compliance with key regulations and policies.
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Further reading: Orsted axes quarter of jobs, pivots to Europe after US setbacks under Trump
Lashers’ strike causes increasing ship backlog at Rotterdam Port
Lashers, who secure a vessel’s cargo, have been on a strike, causing a growing ship backlog at Europe’s largest port in Rotterdam. The usual queue of 6 to 7 ships has doubled to 13. Though this increase was mainly due to Storm Amy last weekend, the strike may increase this delay further if it continues until Friday. The union is to meet with employers, Matrans and ILS, on Friday at noon. If an agreement is reached, lashers would resume work, otherwise, the union has threatened to continue striking over the weekend. Ships would typically divert to Antwerp to avoid backlogs, but the port there is also currently affected by a days-long protest. To stay up to date with more industry developments, companies can turn to ESG tools.
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Further reading: Lashers’ strike causes growing ship backlog at Rotterdam Port
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Germany’s Merz to meet automaker executives without unified stance on EU’s target
Germany’s Chancellor Friedrich Merz has announced that he will meet executives from top German automakers without a unified government position on the EU’s plans to end the sale of carbon dioxide-emitting cars from 2035. This statement moves away from his previous statement of urging the EU to drop the ban due to his SPD coalition partners’ struggles with internal divisions. Merz has also announced an additional €3B ($3.5B) in subsidies to support EV purchases by middle- and lower-income households. The EU has set targets for a 100% reduction of CO2 emissions from new cars and vans by 2035, with intermediate 2030 targets, signalling the end of the internal combustion engine for new vehicles. However, European automakers argue that the timeline is unrealistic and are urging the Commission to extend compliance deadlines and broaden the definition of acceptable technologies.
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Further reading: Germany’s Merz to meet car bosses without unified stance on EU’s 2035 target
Shein to improve internal controls following several fines
According to sources, Shein will strengthen its internal controls following a string of fines over data privacy breaches, fake discounts, and greenwashing. The company has created a “Business Integrity Group” which connects compliance, governance and external affairs teams, and has expanded its internal audit capabilities. In the past three months, Shein has been slapped with numerous penalties including a €150M fine from France over website cookies collecting consumer data without consent. Shein is currently contesting this fine, however, more fines could follow if a European consumer protection probe finds that products sold on its website fail to meet EU safety standards. Shein has shifted more of its marketing spending to Europe (including the UK), but an investigation has revealed that the company does not comply with various OECD guidelines. As its global profile has expanded, it faces more risks, prompting management to allocate more resources to address persistent compliance problems. To ensure accurate compliance with key regulations and policies, companies can turn to ESG solutions.
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Further reading: Exclusive: Shein, hit with big fines, boosts internal controls
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the Cover Photo: Wind turbines Cover Photo Credit: Jesse De Meulenaere
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