Top 5 ESG News Stories Impacting Investors Right Now
Mar 14, 2025
6 min read
News
Mars’ Advertising Agency Faces Greenwashing Tribunal
AMV BBDO, a prominent advertising agency, is currently caught up in a controversial employment tribunal case involving allegations of greenwashing in campaigns for Mars-owned brands Galaxy and Sheba. The dispute centres around former creative partner Polina Zabrodskaya, who claims she was forced to resign after raising concerns about misleading sustainability claims in these campaigns. Zabrodskaya alleges that she faced harassment and discrimination at the UK agency after highlighting issues with environmental and labour practices in Mars' supply chains.
The controversy stems from two specific campaigns. In 2021, Zabrodskaya objected to a Galaxy chocolate advert that promoted the brand as "making chocolate better, one piece at a time," arguing that it ignored reports linking Mars' cocoa supply chain to child labour, forced labour, and environmental harm. A subsequent CBS News investigation in 2023 revealed that Mars sourced cocoa harvested by children as young as five. The second campaign involved Sheba pet food, which claimed its fish supply chain was "100% sustainably sourced." Zabrodskaya questioned the reliability of Sheba's Marine Stewardship Council certification, citing criticism from environmental organisations.
Zabrodskaya claims that after voicing her concerns, she was excluded from meetings, sidelined, and eventually suspended for making "unprofessional and inflammatory comments" after discussing these issues with a senior Mars executive. She resigned in 2024 and is now seeking damages and compensation for emotional distress through the employment tribunal. AMV BBDO has refuted Zabrodskaya's claims, stating that it is not appropriate to comment on ongoing employment tribunal proceedings.
This case highlights the growing tension between advertising agencies, their clients, and employees concerned about environmental and social issues. It also underscores the increasing scrutiny of green claims in advertising by watchdogs such as the UK's Advertising Standards Authority. As consumers become more environmentally conscious, the advertising industry faces mounting pressure to ensure that sustainability claims are substantiated and truthful, avoiding the pitfalls of greenwashing.
House Republicans Subpoena Alphabet Over Alleged Censorship
In a significant escalation of the ongoing scrutiny of tech giants' content moderation practices, the Republican-led House Judiciary Committee issued a subpoena to Alphabet Inc., Google's parent company, on March 6th, 2025. The subpoena, directed at Alphabet and its CEO Sundar Pichai, demands documents related to the company's communications with the Biden administration, focusing on alleged efforts to censor Americans' speech. This action is part of a broader investigation into how major technology firms may have collaborated with the government to suppress certain content online.
Committee Chairman Jim Jordan, a Republican from Ohio, spearheaded this move, claiming that Alphabet has not rejected the Biden-Harris Administration's attempts to suppress speech, unlike Meta. The subpoena seeks information on discussions about content restrictions related to former President Donald Trump, Elon Musk, COVID-19, and other topics often debated in conservative circles. Jordan argues that this information is crucial for developing effective legislation, potentially including new statutory limits on the executive branch's ability to work with tech companies to restrict content circulation and stifle users.
This subpoena is the latest in a series of actions taken by House Republicans to investigate alleged censorship by tech companies. It follows similar subpoenas issued to other major tech firms and coincides with a Federal Trade Commission investigation into user complaints about perceived partisan censorship. The move also comes in the wake of Meta's decision to adjust its content moderation policies in response to conservative concerns. Alphabet has until March 28th to respond to the subpoena. In response, Google spokesperson Jose Castaneda stated that the company remains committed to demonstrating how it enforces its policies independently, rooted in its dedication to free expression.
AT&T's Dramatic Policy Reversal
AT&T, one of America's largest telecommunications companies, has recently made significant changes to its DEI initiatives. The company has ceased encouraging employees to wear pronoun pins and has cancelled several LGBTQ-friendly events, including Pride programs. This move is part of a broader trend among major corporations scaling back their DEI efforts in response to political pressure and threats of legal action.
The company's chief diversity officer, Michelle Jordan, has been rebranded as the vice president of culture and inclusion, with her team undergoing a similar renaming. AT&T has also withdrawn funding from the Trevor Project, an organisation focused on suicide prevention among LGBTQ+ youth, and ended its partnership with Turn Up the Love, a series of Pride events featuring musical collaborations. Additionally, the company will no longer participate in external evaluations like the Human Rights Campaign's Corporate Equality Index, which assesses corporate inclusivity for LGBTQ individuals.
AT&T's policy changes extend to its business practices, with the company now awarding contracts based on merit, quality, and functionality rather than DEI considerations. Employee scholarships, previously targeted at minority groups, will now be accessible to all. These changes come amid increased scrutiny of DEI initiatives by the current administration, with FCC Chair Brendan Carr reportedly pressuring telecommunications companies to end their DEI programs.
Banking Whistleblowers Vindicated in Landmark French Ruling
In a significant legal development, a French court has found UBS Group AG's subsidiary guilty of harassing two whistleblowers who exposed the bank's efforts to assist wealthy French clients in tax evasion. The Paris criminal court ruled on March 10th, 2025, that UBS France, now absorbed into UBS Europe, retaliated against former auditor Nicolas Forissier and former marketing manager Stéphanie Gibaud for their role in uncovering the tax evasion scheme.
The court imposed a fine of €75,000 (£62,954) on UBS Europe, the maximum penalty allowed by law at the time of the wrongdoing. Additionally, the bank was ordered to pay €50,000 in damages to Forissier. The harassment included sidelining Forissier and refusing to promote him to executive director after he disclosed information to superiors within the company. Gibaud, who aided French authorities in monitoring clients at a 2011 Roland-Garros tennis tournament event, was also found to have been penalised by the bank.
This case is part of a broader legal saga involving UBS in France, which has spanned over 15 years. The bank had previously been convicted of money laundering in a separate case, resulting in a €1.8 billion penalty that is currently under review. The whistleblower harassment verdict marks a significant milestone, as it is reportedly the first time in France that a former employer of a whistleblower has been convicted of psychological harassment.
While UBS was acquitted of witness tampering and obstruction charges, the guilty verdict for harassment sends a powerful message to future whistleblowers. The bank has expressed disagreement with the conviction, calling it "unjust," and is considering its next steps. This case highlights the ongoing challenges faced by whistleblowers in the financial sector and the importance of protecting those who expose corporate misconduct.
Supermarket Turf Wars: Fair Competition or Dirty Tactics?
In a recent development that highlights the fierce competition in the UK grocery market, Lidl has publicly criticised Tesco for its last-minute attempt to block the opening of a new Lidl branch on the Isle of Sheppey in Kent. The German discount retailer has accused Tesco of unfairly manipulating the planning process to hinder its expansion efforts.
The controversy stems from Tesco's third objection in three years to Lidl's plans for the new location. This latest objection, filed just before a scheduled hearing on March 6th, 2025, argues that some data in Lidl's planning application is outdated. However, Lidl contends that any delays in the process have largely been caused by previous challenges from Tesco and Aldi.
Adam Forsdick, Lidl GB's Regional Head of Property, expressed frustration with the situation, stating that competitors are focused on erecting barriers that only serve to prevent households from accessing the quality and affordability that Lidl provides. Lidl claims that over 90% of Sheppey residents who responded to its public consultation supported the new store.
This incident is part of a broader trend of major retailers facing criticism for potentially violating regulations designed to prevent supermarkets from obstructing rivals. Recently, Co-op admitted to unfairly blocking competitors from opening stores near its locations on over 100 occasions.
Despite the challenges, Lidl remains committed to delivering the new store and appreciates the continued support from the local community. The company hopes to move forward without further delays to provide Isle of Sheppey residents with more choice, convenience, and job opportunities.