Top firms 'use spin to cover up damage to the environment'; Xpose

Sunday Herald, The, Sep 26, 2004 by Rob Edwards

Three of Britain's largest business organisations are set to win awards for using spin to disguise environmental destruction.

The arms multinational BAE Systems, oil giant Shell and the business lobby group the Confederation of British Industry (CBI) are all in line to collect a prize for corporate "greenwash", due to be announced at the Labour Party's annual conference in Brighton tomorrow.

The annual Xpose Awards are run by the environmental group Friends of the Earth (FOE) "to congratulate big business and their lobby groups for ruining the planet". The names of the winners have been leaked to the Sunday Herald.

BAE Systems, Europe's largest defence company, will take the prize "for best omission from a corporate social responsibility report". Its 2003 report skillfully omits the company's biggest environmental and social impact, claims FOE.

Despite (pounds) 12 billion worth of arms sales to more than 130 countries, the report "contains no disclosure of how this defence company ensures its weaponry does not exacerbate regional conflict and aid corruption and human rights abuses", says FOE.

BAE's report does reveal, however, that it is working on removing lead from bullets and shells. "Lead used in ammunition can harm the environment and pose a risk to people," it observes.

BAE runs aviation, naval and other military businesses in Glasgow, Edinburgh, Prestwick, Dunfermline and Bishopton. With headquarters in London and a major presence in North America, the company's share price rose 30% within a few weeks of the 9/11 terrorist attacks on the US.

"No matter how hard BAE tries to disguise the fact through its deceptive use of language, the fact remains that its primary aim is to develop ways of killing people and wrecking lives as effectively and efficiently as possible," said FOE Scotland's chief executive Duncan McLaren.

BAE reacted angrily to news of its award, strongly defending its corporate ethics. "We are in the business of protecting and defending the planet and our record is as good as any," argued the group's communications director Hugh Colver.

FOE's allegations were "offensive" and "complete nonsense", he said. "I wouldn't dignify this award by turning up to accept it. It is a cheap propaganda ploy."

Shell is up for the "special achievement Xpose for services to Africa". This is meant to commend companies that have "promised the world to Africa but done the least".

FOE accuses the British oil multinational of wasting huge amounts of gas in Nigeria by flaring it off while claiming green credentials in a report.

"The Shell boys have chutzpah in spades," says FOE's award citation. "The report has pages of pictures of forests and wildlife, the survival of which, naturally, owes nothing to Shell's operations."

Shell responded by pointing out that it was committed to ending routine flaring in Nigeria in 2008, although this was looking "increasingly challenging" because of "difficult operating circumstances".

The company was finding more markets for the gas so the amount being used was rising, said a Shell spokesman. "We are focusing on completing projects and maximising their operational performance."

The CBI will take the award for "the most spectacular special effects". This celebrates the use of "diversionary tactics" and "exaggeration" in arguing against corporate regulation.

"The strength of the CBI lies in its ability to say one thing, while lobbying for the other," alleges FOE.

A CBI spokesman responded: "It's nice to see Friends of the Earth acknowledging the effectiveness of our arguments. But although I'd like to be able to tell you that we take these sort of awards seriously, quite frankly we don't."

It was hard to choose this year's winners because there have been so many good examples of corporate greenwash, claimed FOE's McLaren. "It's been amazing to see just how hard so many UK companies and lobby groups have tried to get nominated for an Xpose award by putting all their effort into green spin rather than green substance."

Three of a kind - the companies' spin

BAE Systems What it says: "The systems company innovating for a safer world" and "securing the future for the next generation".

What FOE claim: Europe's largest arms dealer, selling an annual (pounds) 12 billion worth of guns, bombs, fighters and destroyers to more than 130 countries.

Award citation: "We commend BAE's brilliance in removing the dreaded word 'defence' from much of its literature. 'Systems' is infinitely less offensive, and if we're honest, a great cover-up of its real business. Take a bow, boys."

BAE response: "We reject these offensive suggestions. We are in the noble business of supporting the armed forces of democracy."

Shell What it says: "Ensuring environmental sustainability requires achieving sustainable development patterns and safekeeping the productive capacity of natural ecosystems for future generations."

What FOE claim: Wasted 700 million cubic feet of gas a day in Nigeria during 2003 by burning it off in flares - 23% more than in 2002.