Global environmental challenges
This month, Vedanta Resources and subsidiary Sterlite Industries (India) Ltd. made headlines for posing a public health risk to the surrounding community in southern India with pollution from a large copper smelter. They share the top spot in this issue of The Green Gauge, a breakdown of companies recently in the news for winning or losing credibility based on environment-related activity.
Selections of companies were made by Christopher Greenwald, director of data content at ASSET4, a Thomson Reuters business that provides investment research on the environmental, social and governance performance of major global corporations. These ratings are not recommendations to buy or sell.
Vedanta Resources, Sterlite Industries (India) Ltd.
Vedanta Resources faces a new environmental setback in India after a Madras High Court ordered the closure of a large copper smelter at Tuticorin belonging to Vedanta’s Indian subsidiary, Sterlite Industries. Claiming that “the right to have a living atmosphere congenial to human existence is part of the right to life,” the Madras court argued that toxic emissions from the copper smelter, the 9th largest in the world, posed a public health risk to the surrounding community. The Indian Supreme Court granted permission for the facility to continue to operate while Vedanta appeals the verdict.
Murphy Oil Corp.
Murphy Oil recently reached a settlement with the U.S. Justice Department as a result of violations of the Clean Air Act at its refineries in Meraux, Louisiana and Superior, Wisconsin. The settlement, which resulted from high emissions of sulfur dioxide (SO2), nitrogen oxides (NOx), volatile organic compounds (VOCs) and benzene at the facilities, requires Murphy to pay $1.25 million in a civil penalty, $1.5 million for a supplemental environmental project as well as to spend $142 million for upgraded pollution control equipment at the facilities. The total settlement amount of $144.75 million represents 16 percent of the company’s FY 2010 net profit.