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More than three-quarters of companies increased sustainability investment by over 5% during the past year, according to Deloitte’s survey of more than 2,150 C-suite executives across 29 countries. Some 18% raised investment by at least 20%, while only 2% reduced spending. At the same time, companies became more selective, with the average number of sustainability initiatives falling from 5.0 to 3.4, and 51% of executives identifying financial benefits as their primary investment criterion. Executives also reported strong returns, with 77% saying sustainability investments generated higher ROI than other investments, and 83% viewing sustainability as a competitive advantage. Companies cited benefits including lower costs, increased revenue, stronger resilience, and improved reputation. Sustainability remains a top-three priority for 39% of executives, while 63% expect climate change to have a high or very high impact on strategy and operations over the next three years.

 

ESG Today

Pinterest has appointed Amazon executive James Dibbo as chief financial officer, effective October 26th, succeeding Julia Donnelly, who is leaving to join a private early-stage company. Mr Dibbo has previously led finance for Amazon businesses including Ads, Prime Video and Amazon MGM Studios. The appointment comes as Pinterest faces increased competition in digital advertising and has forecast slower third-quarter revenue growth.

 

Reuters

Organizations are increasing cybersecurity spending as artificial intelligence (AI) adoption accelerates, but many remain unprepared for AI-related threats because of weaknesses in data controls and governance, according to PwC’s 2027 Global Digital Trust Insights survey of 3,934 business and technology leaders across 71 countries. Half of security leaders identified attacks targeting AI systems as a threat their organizations were least prepared to address, while 84% of security and finance leaders expect cyber budgets to increase over the next year, and 58% of security leaders rank AI among their top spending priorities. Data governance remains a significant weakness, with organizations implementing an average of only three of seven key data-risk measures, and just 5% implementing all seven. Responsibility for AI governance is also fragmented, with 29% of surveyed CEOs and security and risk leaders assigning accountability to the CIO, CTO, or technology function, 26% to a dedicated AI leader or function, and 17% to the CISO or cybersecurity function. 

 

CDO Magazine

U.S. services-sector activity continued to expand in September, although at a slightly slower pace, with the Institute for Supply Management’s services purchasing managers index declining to 54.9 from 55.4 in August. The reading was broadly in line with economists’ expectations of 55, while new orders remained strong at 59.8, and employment returned to slight expansion after two months of contraction. Inflationary pressures intensified, however, with the prices index rising to 74, its highest level since July 2022, from 72.6 in August. Supplier deliveries also slowed, with the index increasing to 53.2 from 51.3, as respondents highlighted fuel costs and supply-chain constraints as major factors affecting costs, lead times, and business performance. Relatedly, the final S&P Global Services PMI rose to 58.8 from 56.5 in August, slightly above the preliminary estimate and market consensus of 58.7. The reading marked the fastest expansion in business activity since July 2021, supported by new orders reaching a four-and-a-half-year high, strong domestic demand, and accelerating job creation. Employment growth reached its strongest pace since June 2022 as companies responded to rising workloads, while business optimism climbed to a one-year high.

 

SAHI	Wall Street Journal

Supreme Court justices have expressed skepticism regarding oil companies' request to block a climate change lawsuit that could hold them accountable for climate damages. Justice Ketanji Brown Jackson remarked: “This is sort of premature from the standpoint of this court exercising its jurisdiction,” indicating doubts about the court's ability to take up the case at this time. The lawsuit, which alleges that companies like Suncor and ExxonMobil misled the public about their products' impact on climate change, could set a precedent for similar litigation across the country. The court's decision could either allow the case to proceed or determine that it lacks jurisdiction, potentially benefiting localities seeking compensation for climate-related damages.

 

Bloomberg Law

The Hill

Jurist

Los Angeles Times

NPR / National Public Radio

McDonald’s has been sued in a proposed nationwide class action alleging that it violated U.S. antitrust law by using an artificial intelligence (AI)-powered pricing system to coordinate menu prices across its nearly 14,000 franchised and company-owned restaurants. The lawsuit claims algorithms trained on nonpublic transaction data allow McDonald’s and independent franchisees to fix prices rather than set them independently. McDonald’s has rejected the allegations as “speculative and uninformed,” stating that AI does not set menu prices, franchisees make their own pricing decisions, and pricing recommendation tools and analytics are widely used across industries. The Illinois plaintiff is seeking to represent potentially millions of McDonald’s customers.

 

Reuters

Starbucks is facing a proposed class-action lawsuit alleging that eight protein beverages marketed as “sugar-free” actually contain naturally occurring sugar from milk. Three consumers allege that the drinks, including sugar-free protein lattes and matchas in hot and iced versions, contain between 13 and 21 grams of sugar per venti serving because of their lactose content. The lawsuit argues that these levels exceed the Food and Drug Administration’s limits for products labeled sugar-free and also alleges that Starbucks failed to provide a required disclaimer concerning calorie content. The plaintiffs are seeking damages and restitution under false advertising laws in New York, California, and Washington. Starbucks said the claims are without merit, maintaining that it has clearly provided nutritional and product information to customers, and that it intends to vigorously defend itself.

 

Reuters

The Seattle Times

Wall Street Journal

Mattel is facing increased shareholder pressure to consider strategic alternatives after Ariel Investments, which owns a 5.4% stake, called for the Barbie and Hot Wheels owner to explore options including asset disposals, a merger or an outright sale. The intervention follows an approach from Authentic Brands Group that could reportedly value Mattel at more than $20 per share, while Southeastern Asset Management has also previously advocated a sale. The pressure comes as Mattel prepares for a leadership transition, with Roger Lynch set to succeed Ynon Kreiz as chief executive. Mattel shares have fallen more than 20% year-to-date despite jumping 19% following reports of Authentic’s approach, while shareholders have raised concerns over investment in the company’s expansion into entertainment and its impact on margins.

 

Reuters

Wall Street Journal

The billionaire Newhouse family has ruled out selling Condé Nast as it searches for a new CEO, following Roger Lynch’s departure after seven years of restructuring and improving profitability.

 

Financial Times

President Donald Trump has signed an executive order temporarily expanding the use of tax-exempt red, or dyed, diesel in on-road vehicles, effectively waiving the 24-cent-per-gallon federal excise tax on conventional diesel in some cases. Under the order, the IRS will not impose penalties when dyed diesel is sold for highway use through the end of 2026, while the administration will encourage states to ease corresponding restrictions. Trump said the measure would reduce costs for farmers, truckers, and other workers, and ultimately help lower prices for goods, including groceries. However, energy experts and economists have questioned the scale of the potential savings, citing limited infrastructure for distributing dyed diesel and warning that increased demand could raise prices for farmers who already use the tax-exempt fuel for off-road equipment. The measure comes as the administration seeks to address elevated fuel and living costs ahead of November’s midterm elections.

 

Bloomberg

CNBC

Reuters

The FTC Safeguards Rule, part of the Gramm-Leach-Bliley Act, mandates that all businesses classified as “financial institutions,” including tax preparers, implement a Written Information Security Plan (WISP). This plan must detail how client data is protected, who oversees security, and the response to data breaches. Mark Johnson, CPA, emphasizes that “a WISP that exists only as institutional knowledge in one partner's head doesn't satisfy the rule.” The IRS Publication 4557 outlines six essential protections, including anti-virus software and multifactor authentication, which firms must adopt. Many firms fall short by lacking formal documentation and designated security owners. To comply, firms should conduct an audit of their current security measures and appoint someone to formalize their WISP.

 

CPA Practice Advisor

The Commodity Futures Trading Commission has proposed regulating leveraged cryptocurrency transactions offered to retail customers and creating a new registration category for exchanges providing such trades. The proposal would use the CFTC’s existing authority to bring leveraged, financed, and margin crypto transactions into its national regulatory framework, with a 60-day public comment period. The move follows the failure of the Clarity Act, which would have expanded the CFTC’s authority over spot digital asset markets. Some experts say the proposal could also allow federally regulated exchanges offering both spot and leveraged trading to move away from state-by-state licensing requirements, although exchanges offering only unleveraged spot trading could remain under state regimes. Major platforms already offering or developing leveraged crypto products include Coinbase, Crypto.com, and Robinhood.

 

Bloomberg

The IMF has said governments could raise revenue and strengthen economic growth without increasing statutory tax rates by reducing distortions in tax systems and improving administration. Its research found that poorly designed value-added, employment, and corporate taxes can increase production and investment costs, with typical corporate income taxes raising the cost of capital by 15% to 20% across country groups. The IMF estimates that restoring VAT neutrality by limiting exemptions and fully crediting input taxes could generate welfare gains averaging 0.26% of GDP and reaching as much as 0.8%. Allowing businesses to immediately deduct investment costs while continuing to tax economic rents could increase long-term capital stocks by 6.4% in advanced economies and 8.2% in low-income developing economies, potentially raising GDP by 2.1% to 2.7%. The IMF also found that countries with stronger tax administration collect substantially more revenue by narrowing compliance gaps, without requiring higher tax rates.

 

Reuters

Germany and France have proposed a new EU trade instrument that would allow Brussels to move more quickly to restrict imports where trading partners are deemed to be distorting competition or using coercive measures, amid growing concern over rising volumes of low-cost Chinese goods. The proposal could enable measures including an immediate cutoff from the EU market and is intended to give the bloc powers comparable to the US Section 301 regime. The initiative comes as the EU’s trade deficit with China reached €360bn last year and European manufacturers face increased Chinese competition in sectors including machinery, textiles, metals and chemicals. Paris and Berlin have also proposed measures to reduce dependence on individual countries for key products, while EU leaders are expected to discuss tougher trade protections at their summit next week.

 

Wall Street Journal