Auquan's Weekly Wrap | 16th - 23rd September: What you might have missed
Recap of the week's market activity: Nestle sued 250 million euros for "gross negligence", media platforms scrutinized for explicit content by contracted content moderators, delayed vessel returns elevating freight rates
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Nestle E. coli Outbreak
Nestle has been sued for 250 million euros for "gross negligence" related to an E. Coli outbreak in France. Earlier in March, Auquan flagged a potential ESG risk as Buitoni recalled Fraîch’up frozen pizzas in France from a local french source - which later led to 55 cases and deaths of two children. Just earlier this week, we can now see this ESG risk has developed into a potentially significant financial risk for Nestle.
A full timeline of events Auquan's platform has surfaced is below:
- Buitoni case: the 55 victims claim 250 million euros from Nestlé
- Families of children poisoned by Buitoni pizzas speak out: "Nestlé must pay"
- Nestlé brand sued in France
- Frozen pizzas from the Nestlé Buitoni brand Fraîch’Up likely have sickened several hundred
- As many as 79 E. coli cases now linked to Buitoni Fraich’UP pizzas in France
- French prosecutors raid pizza plant after E.coli outbreak
- 50 E. coli infections in France linked to Nestlé pizzas; 2 deaths under investigation
- French officials confirm some E. coli cases linked to Nestlé pizza
- E. coli risk: Buitoni recalls all Fraîch’up frozen pizzas in France - first caught March 19th by Auquan
Content Moderators: Explicit Content Lawsuits
Ongoing developments for Meta and its subcontractor Sama being accused of traumatizing overseas moderators has resulted in another hearing set for Oct. 25. This is just one of many media platforms being scrutinized for their graphic, explicit content from outsourced content moderator employees - including TikTok and Youtube.
- New Hearing Set in Facebook Whistleblower Case Over Kenyan Moderator 'Exploitation'
- YouTube had to hire therapists to help staffers deal with seeing so much disturbing content
- TikTok moderators say they were shown sexually explicit images and videos of kids as part of training
- TikTok Moderators Are Being Trained Using Graphic Images Of Child Sexual Abuse
Global Shipping Cost Rise
As Europe's scramble for supplies continue - a shortage of vessels is increasingly threatening to carry essential fuels this winter. This also exposes Asian economies' difficulty in getting spare cargoes at short notice, especially if the weather turns extremely cold this winter, according to traders and shipowners. Ships are carrying liquefied natural gas (LNG), diesel and crude to Europe from further away than usual to replace Russian energy supplies, as the conflict in Ukraine shows no sign of ending. This is delaying vessel returns - consequently elevating freight rates which are likely to surpass last year's winter peak.
EU Banks Gender Inequality
A survey published by Morningstar revealed whilst gender diversity is improving at a board level (despite Germany, Europe's largest economy having 2nd from bottom female board representation) - it is lagging female representation in executive leadership positions. In a sample of 43 institutions, women held 12% of CEO jobs and all of those were appointed before 2020. This also in spite of many of Europe’s largest banks repeatedly promising to increase gender diversity among their top as the issue has become a concern among stakeholders including investors and regulators.
- European Banks Promising More Diversity Appoint Only Male CEOs
- European banks talk diversity but pick male CEOs
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