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California accuses Exxon of misleading public on plastic recycling

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California has filed a lawsuit against ExxonMobil alleging it falsely promoted the recyclability of plastic, becoming the first US state seeking to hold an oil major accountable for plastic pollution.

The lawsuit alleges Exxon, one of the world’s largest producers of plastic, deceived the public for half a century about the sustainability of its plastic products. The lawsuit seeks damages from the oil group for harms inflicted from plastic production. 

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“For decades, ExxonMobil has been deceiving the public to convince us that plastic recycling could solve the plastic waste and pollution crisis when they clearly knew this wasn’t possible,” said California attorney-general Rob Bonta in a statement. “ExxonMobil lied to further its record-breaking profits at the expense of our planet and possibly jeopardising our health.”

Exxon did not immediately respond to a request for comment.

The allegations arrive as plastics play a growing role in supporting oil demand and as the UN prepares to broker in late November the world’s first binding agreement to cut plastics pollution in South Korea, a deal that has been likened to the 2015 Paris climate agreement.

Global consumption of plastic, a primary driver of petrochemicals demand, is expected to triple by 2060, according to the OECD, reaching 1.3bn tonnes. China was the largest producer of plastics last year, surpassing North America by a slim margin, according to S&P Global Commodity Insights. 

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The International Energy Agency cites the petrochemicals sector as the “single largest contributor” to oil demand growth for the next four years as the electrification of power and transport sectors curb the global thirst for crude. The plastics industry is expected to make up 10 per cent of global emissions by mid-century, up from 5 per cent in 2019, according to a report from the Lawrence Berkeley National Laboratory.

California’s lawsuit against Exxon follows the investigation it launched into the fossil fuel and petrochemicals sectors and their role in plastic pollution in 2022. A group of non-profit organisations including Sierra Club and Surfrider Foundation filed a similar lawsuit on Monday targeting Exxon for misleading claims about its plastics business. 

State and local governments are increasing efforts to hold companies accountable for plastic waste. Earlier this year, New York attorney-general Letitia James sued PepsiCo, demanding the food and drinks company reduce its plastic pollution and pay for damages. 

Developing countries, environmentalists and businesses have called for a limit on plastic production to be included in the final UN plastics treaty expected by the end of the year, arguing that relying on waste management solutions such as recycling were inadequate. 

Karen McKee, head of Exxon’s product solutions business, told the Financial Times earlier this year that a limit on production would not solve the pollution problem and that UN negotiators needed to be “open-minded” about solutions. 

Exxon produced 11.2mn metric tonnes of polyethylene last year and operates a chemical recycling plant for plastic in Baytown, Texas.

About 10 per cent of all plastic is recycled, according to the OECD, which estimates investment in recycling must reach $1tn by 2040, up from less than $20bn today. 

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Workers at BHP’s Escondida copper mine will strike after failing to reach agreement 

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FILE PHOTO: Workers at BHP Billiton

Commodities

Reuters was first to report that workers at BHP’s Escondida copper mine in Chile, the world’s largest, would go on strike after failing to reach an agreement with the company.  The stoppage has potential to have a lasting impact, reminiscent of the last major Escondida walkout in 2017, which hit BHP’s copper production and pushed up global prices of the metal, used to make wiring and nearly every single electronic device. 

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Market Impact

The stoppage has potential to have a lasting impact, reminiscent of the last major Escondida walkout in 2017, which hit BHP’s copper production and pushed up global prices of the metal, used to make wiring and nearly every single electronic device.

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Type: Reuters Best

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Sectors: Commodities & Energy

Regions: Americas

Countries: Chile

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Bosch weighs offer for appliance maker Whirlpool

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FILE PHOTO: A view shows a sign of the German company BOSCH during an event a day ahead of the official opening of the 2023 Munich Auto Show IAA Mobility, in Munich, Germany, September 4, 2023. REUTERS/Leonhard Simon/File Photo

Business & FinanceDeals

Reuters exclusively reported that German engineering group Robert Bosch is weighing a bid for U.S. appliances manufacturer Whirlpool, a move that would boost its position in the household appliances market. 

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Whirlpool’s shares rose 12.7% in early trading after the Reuters report.

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Regions: AmericasEurope

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Israeli strikes kill more than 270 in Lebanon, says health ministry

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Israel launched a relentless wave of air strikes against what it said were Hizbollah targets on Monday, killing almost 300 people in Lebanon’s deadliest day for decades and pushing the region closer to all-out war.

Israeli warplanes struck hundreds of targets across the country, including Beirut’s southern suburbs, as Benjamin Netanyahu’s government ramped up its assault on Hizbollah in a “new phase” to the war.

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The bombardment heightened concerns about full-scale hostilities in the Middle East and spread panic across Lebanon, sending tens of thousands fleeing targeted areas.

Monday’s death toll was the highest since Israel launched a ground offensive against Hizbollah in 2006, and came despite the US warning Israel not to escalate its military campaign against the Iranian-backed militant group.

Israel’s army said it had hit some 800 Hizbollah targets and would continue to strike buildings where it believed the militant group was storing weapons, warning civilians to evacuate.

“We are not waiting for the threat, we are pre-empting it,” Netanyahu said in a video statement, as the Israeli premier warned of “complex days” ahead.

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“We are eliminating senior figures, terrorists and missiles . . . I promised that we would change the security balance, the balance of power in the north — that is exactly what we are doing.”

The Israeli cabinet late on Monday approved a “special [emergency] situation” across the country that allows the military more latitude to restrict civilian life and activities due to the war in anticipation of a fierce Hizbollah response.

Lebanon’s health ministry said 39 women and 21 children were among the almost 300 dead, with at least 1,024 people injured. Roads in southern Lebanon were packed with cars as civilians fled north towards Beirut and schools across the country were turned into emergency shelters for the displaced.

Lebanese people flee in their cars from southern Lebanon towards Sidon and Beirut on Monday
Lebanese people flee in their cars from southern Lebanon towards Sidon and Beirut on Monday © Stringer/EPA-EFE/Shutterstock

Israel issued several warnings throughout the course of the day, urging civilians to leave any buildings where Hizbollah stored weapons, first in southern Lebanon and then in the Bekaa Valley in the country’s east. Both are areas where Hizbollah has long had a major presence.

Beirut residents told the Financial Times they received warning calls on their landlines from the Israeli military ordering inhabitants of villages in targeted areas to leave.

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In its statements, the Israel Defense Forces said people had two hours to leave any potential targets and advised them to move at least 1km away.

In response to the IDF strikes, Hizbollah said it had fired dozens of missiles at multiple targets in northern Israel including a site owned by the Rafael defence company north of Haifa. It stressed the attacks “in defence of Lebanon and its people” were focused on military targets.

Sirens sounded multiple times in northern Israel throughout the day. But fewer rockets hit population centres in Israel than on Sunday, when the militant group hit the suburbs of Haifa.

One strike on Monday hit a private home in the village of Givat Avni in the Galilee, Israeli media reported. Rockets were also intercepted over the occupied West Bank, a regional council for Israeli settlements in the area said.

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Israeli defence minister Yoav Gallant told citizens to prepare for a more intense response. “We are deepening our attacks in Lebanon, the sequence of operations continues,” he said. “Ahead of us are days when the public will have to show composure, discipline.”

The escalation has stoked fears that a full-blown land war could be imminent.

Asked about the possibility of a land incursion into southern Lebanon, Rear Admiral Daniel Hagari, an Israeli military spokesman, said the country would continue to “do whatever is needed” to prevent Hizbollah from being able to strike northern Israel and to allow local residents to return to their homes.

Iran’s president Masoud Pezeshkian said that Israel was seeking to “trap” his country in a wider war. “They are dragging us to a point where we do not wish to go,” he told reporters on Monday.

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Ziad al-Makary, Lebanon’s information minister, said on social media that a large number of residents in Beirut and other areas received “random” phone messages via their landlines telling them to evacuate their locations.

His office in Beirut received one of the calls, which he said were part of Israel’s policy of “psychological warfare”, adding that “work at the Ministry of Information continues as usual”.

The strikes prompted chaotic scenes across the country. Videos in Lebanese media showed explosions rocking villages in the Bekaa Valley, and paramedics and residents picking their way through rubble following an air strike. Schools closed across Lebanon’s southern and Bekaa regions as well as Beirut’s southern suburbs.

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The health ministry asked all hospitals in the country’s south and east to halt non-urgent surgeries to make room for those injured in the Israeli strikes. Hospitals in the north of Israel also began relocating operations further south away from the fighting.

Lebanese Prime Minister Najib Mikati said during a cabinet meeting that the Israeli attacks were a “war of extermination”. Citing UN secretary-general António Guterres, who warned on Sunday that southern Lebanon could turn into “another Gaza”, Mikati called on the international community “to pressure Israel to end its aggression”.

The hostilities follow the mass detonations of Hizbollah’s communications devices that killed 37 people and injured more than 3,000 across Lebanon, and which the militant group blamed on Israel. Israel has not directly confirmed or denied responsibility.

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Sigma Lithium COO steps down in new leadership shakeup, shares dive 

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Energy

Reuters reported exclusively on Thursday that Sigma Lithium’s chief operating officer left the company last month, sending shares of the miner 7% lower amid its latest leadership shakeup. Sigma on Friday confirmed the executive’s departure. The story followed an exclusive report the week before on a mining rights dispute involving the husband-and-wife pair who ran the company together until earlier this year. 

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Market Impact

Sigma Lithium (SGML.V) Chief Operating Officer Brian Talbot left the company at the end of last month, he told Reuters on Thursday, sending shares of the Vancouver-based miner tumbling. 

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Type: Reuters Best

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Sectors: Commodities & Energy

Regions: North America

Countries: Canada

Win Types: Exclusivity

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Customer Impact: Important Regional Story

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Japan, Tokyo governments target $4.7 bln valuation for Tokyo Metro in IPO

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Tokyo Metro

Business & FinanceEconomy

Reuters exclusively reported that Japan’s national and Tokyo governments are seeking a 700 billion yen ($4.7 billion) valuation for Tokyo Metro as they prepare to list the subway operator as early as October-end, in what would be the nation’s biggest IPO in roughly six years. The two governments, which own 100% of Tokyo Metro, plan to arrange a meeting of brokerages within a week for a briefing on the IPO and expect to receive approval for the listing from the Tokyo Stock Exchange as soon as mid-September, the sources said.  

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With half the company to be sold, the initial public offering could raise 350 billion yen at that valuation, which would exceed the size of Kokusai Electric’s IPO last year and become the largest since SoftBank Group listed its wireless unit in 2018. 

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Type: Reuters Best

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IPAW 2024 kicks off with IP seminar for advisers

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IPAW 2024 kicks off with IP seminar for advisers

Income Protection Awareness Week (IPAW 2024) kicked off today (23 September) with a seminar for advisers exploring the current income protection (IP) market.

The awareness week is being organised by the Income Protection Task Force (IPTF) to raise the profile and grow sales of IP products.

The week will comprise a series of online keynotes, panel debates, case studies and presentations and will tackle various themes across income protection.

Today’s session looked at the case for income protection and what advisers are seeing in the market and in client conversations.

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It also looked at how advisers include IP in their advice process and the impact that consumer duty has had on adviser behaviour.

Jo Miller, co-chair, IPTF, said the IP market has seen a rise in sales, with a record number of sales on advice.

However, she urged the sector to keep up the momentum as more work needed to be done.

The adviser panel – consisiting of Mike Douglas, protection specialist, Woodside Financial Services, Nina Brown, protection specialist at Pam Brown Mortgages, and Hannah Murray, financial adviser, St. James’s Place Protection Planning – expressed similar sentiments.

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For his part, Douglas urged advisers to make the IP advice process simple by explaining the benefits and pitfalls of not having IP cover.

Meanwhile, research from protection and employee benefits provider MetLife UK has found that while one in five (20%) consumers see the benefit of financial protection, 12% don’t understand the difference between the various offerings.

The study, published today, found one in ten (9%) customers admitted they only thought about financial protection once it was too late and they needed to claim.

MetLife said IPAW provides the chance for advisers to talk to clients and review what protection they do and don’t have in place.

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