Business

EU Agrees to Landmark Food Waste and Fast Fashion Reforms

Published

3 days ago

February 19, 2025

RTX

After intense overnight negotiations, the Polish presidency of the EU Council announced a breakthrough agreement on legally binding food waste reduction targets and measures to curb throwaway fashion culture. The reforms, part of changes to the EU Waste Framework Directive, mark a major step in tackling Europe’s growing waste problem.

Legally Binding Targets to Cut Food Waste

For the first time, the EU has set mandatory food waste reduction targets for all member states. By 2030, food retailers, restaurants, caterers, and households will need to cut waste by 30%, while food processors and manufacturers must achieve a 10% reduction. These targets are based on average waste levels from 2020 to 2023.

With 59 million tonnes of food wasted annually, equivalent to €132 billion in losses, policymakers say urgent action is needed. The agreement follows pressure from environmental groups and sustainability advocates, who have long pushed for stronger EU-wide commitments on food waste.

Tackling Fast Fashion and Textile Waste

Alongside food waste measures, new regulations targeting the fashion industry have been introduced. Under the revised directive, textile producers and fashion brands must pay fees based on the sustainability and recyclability of their products. This Extended Producer Responsibility (EPR) system aims to discourage fast fashion, particularly the sale of cheap, disposable clothing often found on online platforms.

The law also allows EU governments to adjust fees based on garment durability, penalizing brands that promote excessive consumption and short-lived products. The text specifically calls out aggressive marketing tactics that encourage consumers to discard clothing before it wears out, labeling such practices as contributors to “overgeneration of waste.”

Additional criteria will consider factors such as a retailer’s product range, availability of repair services, and incentives for sustainable purchasing.

Mixed Reactions from Campaigners and Lawmakers

While anti-waste activists welcomed the reforms, some criticized the targets as falling short of existing global commitments. Theresa Mörsen, policy officer at Zero Waste Europe, pointed out that the EU pledged a 50% reduction in food waste under the UN Sustainable Development Goals (SDGs).

“This deal is a step forward, but it doesn’t match the ambition we need,” Mörsen said. She also noted that 11% of food waste occurs before products even leave the farm, an issue not addressed in the new targets.

Similarly, while she praised the textile waste action, Mörsen said it lacked concrete targets for circularity, unlike established policies in France and the Netherlands.

Farmers Exempt from Food Waste Cuts

The deal’s passage through the European Parliament was led by Polish MEP Anna Zalewska of the right-wing ECR group, who highlighted her success in ensuring that farmers were exempt from the new obligations.

“We ensured that food waste reduction policies are realistic and feasible for member states, while protecting the agricultural sector from unnecessary burdens,” Zalewska said.

The agreement is provisional and will require final approval from EU ministers at an upcoming Council summit—a step typically seen as a formality. If formally adopted, the new regulations will significantly reshape how food waste and textile disposal are handled across the European Union.

Business

World’s Largest EV Manufacturer Recalls Over 375,000 Vehicles for Power Steering Issue

Published

17 hours ago

February 21, 2025

RTX

The world’s largest electric vehicle manufacturer is recalling more than 375,000 vehicles due to a power steering issue that could impact driver control, according to the US National Highway Traffic Safety Administration (NHTSA).

The recall affects certain 2023 Model 3 and Model Y vehicles, with the NHTSA reporting that the printed circuit board responsible for electronic power steering assist may become overstressed. This could result in a loss of power steering assistance when the vehicle stops and then accelerates again.

A loss of power steering assistance requires drivers to exert greater effort to steer the vehicle, particularly at low speeds, increasing the risk of accidents.

The EV manufacturer has not disclosed the number of incidents linked to the issue but stated that it is working to address the problem promptly. Owners of affected vehicles will be notified and offered free repairs, including replacement of the faulty circuit board if necessary.

The NHTSA advises vehicle owners to monitor their dashboard warning lights and seek service immediately if they notice any changes in steering performance. The agency is continuing to monitor the situation to ensure compliance and safety.

This recall comes as the electric vehicle industry faces heightened scrutiny over software and hardware reliability. Despite the setback, industry analysts believe the company’s proactive recall could help maintain customer trust and highlight its commitment to safety and product quality.

Business

Alibaba Reports Fastest Revenue Growth in Over a Year Amid AI Boom

Published

17 hours ago

February 21, 2025

RTX

Chinese e-commerce giant Alibaba Group Holding has reported its fastest revenue growth in more than a year, driven by advancements in artificial intelligence and cloud computing. The company’s revenue for the quarter ending in December rose 8% to 280.2 billion yuan (€36.65 billion) compared to the previous year, surpassing analysts’ expectations. Net income surged to 48.9 billion yuan (€6.41 billion), boosting its New York-traded stock by over 12% following the earnings announcement.

Alibaba CEO Eddie Wu highlighted the company’s commitment to AI, stating during an earnings call that Alibaba plans to “aggressively invest” in AI and cloud infrastructure over the next three years, with planned spending expected to exceed its total investments of the past decade. Wu emphasized that artificial general intelligence (AGI), which aims to match or surpass human intelligence, is Alibaba’s primary focus, describing the opportunity as a “once-in-several-decades” transformation for the industry.

The company has already integrated AI into its cloud products, resulting in a 13% revenue growth for its cloud division—the fastest pace in two years. Alibaba’s international commerce unit, including platforms like AliExpress and Lazada, saw a 32% increase in revenue, driven by robust cross-border business performance.

Alibaba’s AI strategy comes amid growing competition between the U.S. and China in the AI sector. In January, Alibaba introduced its latest Qwen AI models, which performed well in industry benchmark tests, positioning the company among China’s leading AI innovators. Additionally, Alibaba is collaborating with Apple to integrate its AI technology into Chinese iPhones.

The company’s resurgence follows a challenging period marked by regulatory crackdowns in China’s technology sector. In 2020, authorities halted the IPO of Alibaba’s financial affiliate, Ant Group, and imposed a record $2.8 billion (€2.67 billion) fine for anti-monopoly violations. However, recent signs suggest a more supportive stance from Beijing. Chinese President Xi Jinping recently met with prominent entrepreneurs, including Alibaba cofounder Jack Ma, signaling renewed government backing for the tech industry.

Amid these developments, Alibaba’s stock has surged by over 60% this year, with U.S.-listed shares rising 8.5% to $136.58 (€130.41) during morning trading. With its focus on AI and cloud computing, Alibaba is well-positioned to capitalize on the growing demand for advanced technology in China and beyond.

Business

Airbus Reports Strong Orders and Steady Growth Despite Supply Chain Challenges

Published

2 days ago

February 20, 2025

RTX

European aircraft manufacturer Airbus has reported solid financial results for 2024, with strong order intake and increased deliveries, further extending its lead over struggling competitor Boeing.

In its annual earnings update on Thursday, Airbus revealed that revenues rose to €69.23 billion, up from €65.45 billion in the previous year. However, adjusted earnings before interest and tax (EBIT) dropped 8% to €5.35 billion, compared to €5.84 billion in 2023. The decline was attributed to restructuring costs in the company’s space division.

Aviation and tourism expert Anita Mendiratta praised Airbus’ performance, stating that the results highlight the company’s focus on fundamentals. “The strong order intake across all divisions signifies sustained market confidence—critical in 2024, the first full year since the pandemic when trade not only recovered but surged,” she said.

Aircraft Deliveries and Orders

Airbus delivered 766 commercial aircraft in 2024, an increase from 735 in 2023, thanks to a strong year-end push. Gross commercial aircraft orders reached 878, with net orders totaling 826 after cancellations.

Looking ahead, Airbus has set a delivery target of 820 commercial aircraft for 2025—a figure lower than its record 863 deliveries in 2019. While some analysts view this target as conservative, Matt Dorset, equity analyst at Quilter Cheviot, noted that it reflects ongoing supply chain issues. “The company will want to avoid another cut to guidance, as occurred in 2024,” Dorset explained.

Airbus lowered its delivery targets in June 2023 due to supply chain disruptions involving engines, aerostructures, and cabin equipment, as well as additional costs in its space systems division. The company continues to face challenges, particularly with Spirit AeroSystems, which is affecting the production of the A350 and A220 models.

Financial Outlook and Dividends

For 2025, Airbus forecasts adjusted EBIT of approximately €7 billion and free cash flow before customer financing of around €4.5 billion. These projections do not account for potential tariffs that could be imposed by a future Donald Trump administration in the United States.

Despite ongoing challenges, Airbus announced an increased dividend of €2 per share for 2024, up from €1.80 the previous year. Additionally, the company proposed a special dividend of €1 per share, with a payment date set for April 24, 2025.

Airbus Extends Lead Over Boeing

Airbus’ stable financial performance contrasts sharply with the difficulties faced by Boeing, which reported a loss of $11.8 billion (€11.3 billion) in 2024—its worst result since 2020. Boeing’s setbacks include a series of safety incidents, strikes, and challenges within its defense programs, further solidifying Airbus’ position as the world’s leading aircraft manufacturer.