It’s possible that I shall make an ass of myself. But in that case one can always get out of it with a little dialectic. I have, of course, so worded my proposition as to be right either way (K.Marx, Letter to F.Engels on the Indian Mutiny)
Tuesday, August 29, 2023
FirstCry Founder Probed for Alleged $50 Million India Tax Evasion
Anto Antony
Mon, August 28, 2023
(Bloomberg) -- Coming soon: Sign up for the India Edition newsletter by Menaka Doshi – an insider's guide to the emerging economic powerhouse, and the billionaires and businesses behind its rise, delivered weekly
India’s tax department is probing an alleged tax evasion by founder of three Indian unicorns — FirstCry.com, Globalbees Brands Ltd. and Xpressbees — , according to people familiar with the matter.
The department, which India’s Ministry of Finance runs, has sent notices to founder Supam Maheshwari asking why he didn’t pay more than $50 million in taxes on equity transactions conducted in privately-held FirstCry, the people said, asking not to be named as the information is not public.
At least six investors in FirstCry, including private equity firm ChrysCapital Management Co and Sunil Bharti Mittal’s family office, have also received enquiries related to the matter, they said. Maheshwari is in conversations with the tax department to settle the probe, according to the people.
Maheshwari, spokespersons for ChrysCapital, the tax department and Mittal didn’t respond to emails seeking comments about the probe.
FirstCry had turned profitable in the financial year ended March 31, 2021, after years of losses. It is one of the few startups in India seeking to tap the IPO market after being profitable at an operational level, Bloomberg reported earlier.
--With assistance from Ruchi Bhatia.
India's Moon Mission Makes Unprecedented Measurements at the Lunar South Pole
Passant Rabie
Mon, August 28, 2023
Chandrayaan-3 captured this image on August 27.Image: ISRO
Chandrayaan-3 captured this image on August 27.Image: ISRO
It’s been less than a week since India’s Chandrayaan-3 mission became the first to touch down on the Moon’s south pole, and its lander is wasting no time collecting valuable data from the unexplored region.
Using a temperature probe on board the Vikram lander, Chandrayaan-3 measured the temperature profile of the lunar soil in the south pole to better understand the thermal behavior of the Moon’s surface. In an update shared on X (previously Twitter), the Indian Space Research Organization (ISRO) revealed the temperature variations across the Moon’s surface as measured by Chandra’s Surface Thermophysical Experiment as the probe penetrated the lunar soil.
Read more
Starfield Fans Are Melting Down Over ‘Invisible Walls’ And The Possible Limits Of Exploration
Maybe Don’t Bring Astarion On His Personal Quest In Baldur’s Gate 3
Ohio Police Fatally Shot 21-Year-Old Pregnant Black Woman Who Allegedly Stole Liquor
India’s Chandrayaan-3 mission successfully landed on the Moon on August 23, making India the fourth country to achieve such feat after the Soviet Union, the U.S., and China. Shorly after its touchdown, the rover rolled its way onto the surface of the Moon using the lander’s ramp, officially becoming the first mission to operate on the lunar south pole.
The south polar region is of great interest to scientists as previous evidence suggests it contains water ice reservoirs in the permanently shadowed regions. Water on the Moon could be used by astronauts for drinking, or to make fuel and oxygen.
This was India’s second attempt to land on the Moon. Chandrayaan-2 did not go as well; the mission crashed on the lunar surface in September 2019 due to an issue with its braking thrusters. This time around, things appeared to go smoothly for the worthy successor, Chandrayaan-3.
The Chandrayaan-3 mission is only meant to last for 14 days—the portion of time during a full lunar day when sunlight reaches the Moon’s surface.
For more spaceflight in your life, follow us on Twitter and bookmark Gizmodo’s dedicated Spaceflight page.
Gizmodo
India's Chandrayaan-3 takes the moon's temperature near lunar south pole for 1st time
Monisha Ravisetti
Mon, August 28, 2023
Tracks in lunar soil made by the Pragyan rover.
On Aug. 23, thanks to the success of Chandrayaan-3, India made a strong mark in space history. Not only did it become the first nation to land a spacecraft near the south pole of the moon, but also the fourth to create imprints on Earth's gleaming companion at all. However, the lunar lander's touchdown was only step one of its ultimate story.
Since reaching the moon's south pole, Chandrayaan-3 has been hard at work – having deployed a rover named Pragyan to explore the cratered surface, harnessed integrated cameras to send back videos of its environment and even started completing research objectives planned for a two-week stay on the orb.
On Saturday (Aug. 26), for instance, scientists with the Indian Space Research Organization presented a video on X (formerly known as Twitter) of Pragyan roaming around the mission's landing point, which has been named the Shiv Shakti Point. In the video, the gold-colored moon explorer is seen on the other end of two delicate tracks it has created in lunar soil since exiting the lander that ushered it over there, named Vikram. The gingerly way Pragyan treads on a desolate gray world is almost charming.
Shortly after releasing this update, ISRO also posted a sort of checklist on X saying that, after successful completion of a safe and soft landing as well as Pragyan's deployment, Chandrayaan-3 has begun conducting scientific experiments on site. "All payloads are performing normally," the agency posted on X.
Related: Pragyan, Vikram, Vikas: How did India's Chandrayaan-3 moon mission get its names?
That prelude to lunar south pole science was quickly elaborated upon when, on Sunday (Aug. 27), ISRO posted yet another update on X regarding one of Chandrayaan-3's payloads called the ChaSTE experiment, or Chandra's Surface Thermophysical Experiment.
The purpose of this experiment, in essence, is to use a temperature probe as well as 10 individual temperature sensors to measure temperature profiles of lunar south pole soil. The goal, ISRO explains, is for ChaSTE to help scientists understand what the thermal behavior of the moon's surface is like. And, as it appears, ChaSTE has already found some stuff out.
Illustrated by a graph ISRO released, the experiment has probed various temperatures of the moon's surface at different depths, marking the "first such profile for the lunar south pole."
The crater on the moon seen by the Pragyan rover.
The hazardous crater on the moon seen by Pragyan.
Related Stories:
— What's next for India's Chandrayaan-3 mission on the moon?
— Google celebrates India's Chandrayaan-3 moon landing with adorable Doodle
— India's historic Chandrayaan-3 moon landing celebrated by ISS astronauts
Detailed observations on that front, the agency noted, are still underway – but if you're wondering what Pragyan is up to, the last we heard, it has come across a dangerous crater. Due to the nature of the lunar south pole, hazards such as this are kind of expected. In fact, that's a major reason for why Chandrayaan-3's landing was such a massive occasion. Though everyone wants to get to the lunar south pole — because it's expected to host solid quantities of water ice — actually landing there is tough because the region is so very covered in craters.
Just about 3 meters (nearly 10 feet) from its location on Sunday (Aug. 27), the rover spotted a crater that seemed to be about 4 meters (13 feet) wide. "The rover was commanded to retrace the path," ISRO posted on X, "It's now safely heading on a new path."
Updated Mon, August 28, 202
Photo by: STRF/STAR MAX/IPx 2021 10/11/21 Packagiing waste piles up on the streets of Manhattan as more and more people turn to online shopping. (STRF/STAR MAX/IPx)
A slim majority of Americans think their individual actions can reduce the effects of climate change, according to a Washington Post-University of Maryland poll.
But do they know which actions are the most effective? Not quite.
The poll found most people believe recycling has a lot or some impact on climate change. About three-quarters say not eating meat or dairy would have a little or no effect on climate change.
Climate experts say they're wrong on those and other counts.
These incorrect assumptions pose a problem for those trying to cut their emissions. Though a single person's carbon footprint may be small, taken together, these decisions can add up and prevent gigatons of emissions from entering the atmosphere.
"People are interested in taking action," said Ann Bostrom, an environmental policy professor at the University of Washington. "But if they don't know what's most effective, then they don't know what they're accomplishing."
Here's what you need to know about reducing your carbon footprint.
- - -
What doesn't work
The Post-UMD poll found nearly 6 in 10 Americans think recycling will have a lot or some impact on climate change, the second most-highly rated action behind installing solar panels. About a third say the same for using an electric stove instead of a gas stove and 24 percent say driving slower.
But experts said those actions are unlikely to make much of a difference in reducing greenhouse gas emissions.
"These are not even really climate solutions," said Jonathan Foley, executive director of Project Drawdown, a nonprofit that evaluates climate solutions.
These misperceptions can arise, he said, when people don't research climate solutions closely or attach outsize importance to actions that seem simple, such as getting rid of plastic straws. There have also been efforts from industry to mislead consumers about what is most effective, he added.
People tend to overestimate the climate benefits of recycling. One study led by a researcher at the University of Leeds placed recycling second-to-last among more than 50 actions people can take to reduce their carbon footprint.
That's also not to say these measures don't have other benefits - recycling can help the environment by reducing waste, and switching to an electric stove can improve indoor air quality. However, that doesn't make them climate solutions.
Stephen Mullis, 65, carefully sorts his garbage for any recyclable materials, but he's worried that recycling isn't as effective as he thought.
"I'm trying to do my part, but I'm not sure if it's working on down the line," he said.
- - -
What does work
Among the 10 actions Americans were polled on, experts said flying less and cutting out meat and dairy are among the best steps people can take. Most Americans don't realize that - 51 percent say flying less would make a little or no difference, and about three-quarters say the same for cutting out meat and dairy.
Though flying accounts for a small share of global emissions, a few flights a year can quickly add up to be the largest contributor to your carbon footprint.
Emily Wang, 23, hasn't flown since the fall of 2021. She said the decision was the logical outcome of her concern about climate change and the contribution of flying to her carbon footprint, though it required some lifestyle changes, such as reducing how often she travels from Massachusetts to see her parents in Michigan.
"It might seem obvious, but a lot of people know about climate change and still fly a lot," she said. "It doesn't always come naturally."
Meat and dairy are also heavy hitters. Project Drawdown estimates that if three-quarters of people around the world adopted a plant-rich diet by 2050, they could avoid the release of more than 100 gigatons of emissions.
"It doesn't mean you can't occasionally enjoy a really nice filet mignon for a celebration," Foley said. "But if you cut down on red meat, it's both a healthy dietary choice and a way to reduce emissions."
If both experts and Americans agree on one thing, it's that installing solar panels can help fight climate change. More than 60 percent of Americans say doing so would reduce their climate impact at least to some degree.
- - -
Greening your home
Foley said there are also a range of improvements you can make around your house to reduce your carbon footprint - and potentially rack up other benefits.
That includes driving an electric car and using a heat pump, options that 51 percent and 40 percent of Americans, respectively, say would have a lot or some impact on climate change, according to the Post-UMD poll.
"If everyone in America had an energy audit and spent a few hundred dollars at Home Depot on a programmable thermostat and a little bit of caulk, that would be worth a couple of nuclear power plants worth of energy," Foley said.
Sam Gude, 46, is applying that advice in his two homes. He's upgraded the insulation in one of them and is planning to switch the other from gas to electric heating. These changes reduce his carbon footprint, but they also save him money, he said.
"I try to find as many win-wins as possible," he said.
Chris Field, the director of Stanford's Woods Institute for the Environment, cautioned the benefit of changes around your home are often proportionate to its size. (The poll finds about 3 in 10 Americans say living in a smaller house or apartment will make a difference.)
"If you have 10 times as much space as you need, you will have close to 10 times as much of an environmental footprint," he said.
- - -
The big picture
Americans have grown less confident that their individual actions can reduce the effects of climate change. In 2019, 66 percent said they could personally make a difference, a number that has fallen to 52 percent this year, with the sharpest declines among Republicans and independents.
Some experts say those feelings are not unfounded. Individual actions can only go so far, said Field. "The most important thing anybody can do is to vote for a climate-friendly government agenda," he said.
However, Kimberly Nicholas, a sustainability scientist at Lund University in Sweden, said the United States is home to some of the wealthiest people in the world, and they have a responsibility to reduce their carbon footprint.
"Ninety percent of the world doesn't need to reduce their emissions, but most readers of The Washington Post probably do," she said.
The poll was conducted by The Post and the University of Maryland's Center for Democracy and Civic Engagement from July 13 to 23. The sample of 1,404 U.S. adults was drawn from the NORC AmeriSpeak Panel, an ongoing survey panel recruited through random sampling of U.S. households. Overall results have a margin of sampling error of plus or minus 3.5 percentage points.
- - -
Scott Clement contributed to this report.
BBC
Mon, August 28, 2023
Young activists have been a driving force in the debate on how to tackle climate change
Children have the right to a clean, healthy and sustainable environment, and governments must urgently act to ensure this, the United Nations says.
In a new report, the UN Child Rights Committee says that climate change is affecting children's rights to life, survival and development.
It says young children are among the most vulnerable, yet their voices are rarely heard in climate change debates.
Tuesday's report outlines new guidance for governments to follow.
Drawn up with the help of young people, it includes phasing out fossil fuels and switching to renewable energy.
UN countries will also be required to take measures to protect children from the harmful effects of climate change, such as monitoring air quality, regulating food safety and tackling emissions and toxic lead exposure.
Countries should also address the "clear emerging link" between climate change and children's mental health, identifying eco-anxiety and depression as conditions that are on the rise.
And the UN says that young people must be included when drawing up new guidance.
Governments are responsible not just for protecting children from immediate harm, the report says, but from the future effects of climate change. They can be held accountable for environmental damage both inside their own borders and beyond them.
The report was compiled following two rounds of consultations with participating countries, national human rights institutions, international bodies, experts, and an advisory committee made up of 12 young climate change advisors.
The committee received 16,331 contributions from children in 121 nations, who shared the effects of environmental degradation and climate change on their lives and communities.
Ann Skelton, who leads the committee said in a statement that the guidelines could have "great and far-reaching legal significance" because it makes clear the obligations governments have to protect children from environmental harms.
"Children are architects, leaders, thinkers and changemakers of today's world. Our voices matter, and they deserve to be listened to," said 17-year-old Kartik, a climate and child rights activist from India and one of the committee's child advisers.
Scientists and politicians say we are facing a planetary crisis because of climate change, and scientists say that there is no doubt that the particularly rapid climate change seen over the past century is caused by humans.
Impacts so far include:
more frequent and intense extreme weather, such as heatwaves, drought and floods
rapid melting of glaciers and ice sheets, contributing to sea level rise
huge declines in Arctic sea ice
Anders Hagstrom
Mon, August 28, 2023
Notorious Russian intelligence chief tapped to replace Prigozhin in Wagner's Africa operations
Gen. Andrey Averyanov is being tapped to run the Wagner Mercenary group's Africa operations following the death of Yevgeny Prigozhin.
Averyanov currently serves as the head of covert offensive operations in Russia’s military intelligence service, and he has been accused of ordering assassinations of Russian dissidents. He now has the task of maintaining Wagner's operations in Africa after the death of their architect, The Wall Street Journal reported.
Averyanov met with African leaders during a Russia-Africa summit in July. The summit was also Prigozhin's first public appearance following his brief mutiny against Russian President Vladimir Putin's regime.
When Prigozhin's private jet crashed last week, Wagner lost several members of its top brass in addition to their leader. Prigozhin's second in command, Dmitry Utkin, and Wagner's non-military logistics chief, Valery Chekalov, were also aboard.
WAGNER TROOPS MOURN PRIGOZHIN FOLLOWING PLANE CRASH
Gen. Andrey Averyanov is being tapped to run the Wagner Mercenary group's Africa operations following the death of Yevgeny Prigozhin.
Putin forced Wagner mercenaries to withdraw operations in Ukraine following their mutiny earlier this year. However, the group remains heavily active in Africa.
PENTAGON SAYS WAGNER CHIEF YEVGENY PRIGOZHIN LIKELY KILLED IN PLANE CRASH, NO EVIDENCE OF MISSILE ATTACK
It is unknown what caused Prigozhin's plane to crash, but experts believe Putin ordered an assassination.
Rescuers said they found 10 bodies in the wreckage, and Russian officials stated Sunday that a DNA analysis confirmed that Prigozhin was among them.
WHO IS YEVGENY PRIGOZHIN?
In comments following the crash, Putin described Prigozhin as "a man of difficult fate" who "made serious mistakes in life, and he achieved the results he needed — both for himself and, when I asked him about it, for the common cause, as in these last months. He was a talented man, a talented businessman."
It is unknown what caused Yevgeny Prigozhin's plane to crash, but experts believe Russian President Vladimir Putin ordered the assassination.
"It would be harmful to make changes immediately," one Wagner employee in Africa told WSJ. "The first concern now is not to lose control of the situation while waiting for the appointment of one (or more) heirs."
Phil Wahba
Mon, August 28, 2023
Courtesy of Touchpoint Media
Ecolab CEO Christophe Beck doesn't like to call the seemingly endless slew of weather calamities this summer—wildfires in Canada, 120-degree temperatures in Italy, and a tropical storm slamming Los Angeles—an opportunity. But he does concede that these events have added urgency to efforts to contain climate change and are keeping the heat (no pun intended) on his big corporate clients to improve their sustainability records. "It is making climate change more real for people," the Swiss-born CEO says.
The company, which began in 1923 in St. Paul, Minn., as Economics Laboratory, has a client roster chock full of Fortune 500 companies, such as Coca-Cola, Walmart, Dow, McDonald's, PepsiCo, and Microsoft. Ecolab, a $14 billion-a-year company, provides industrial cleaners, wastewater treatment, and cooling water treatment products.
Beck says clients, also facing public pressure, are hungry for the cost savings that come with more efficient water use. That includes the oil and gas industries, which he says will remain very large for decades, even as renewable energies make up a growing percentage of energy use.
"Companies realize they can produce oil in more sustainable ways," says Beck, who is not to be confused with Christophe Beck, the film score composer of such movies as Marvel's Ant-Man series.
At the same time, a big incentive for his clients is a more prosaic concern: cutting costs. "There is a theory that people are ready to pay more for sustainable products. It's not really true for the masses," says Beck.
This interview was edited and condensed for clarity.
Fortune: Does this summer of bonkers weather worldwide help Ecolab's business?
I would answer yes, but that feels self-serving. It is, however, making climate change more real for people. The wildfires we've seen this year from a human, social, and business perspective are threats that are making climate change even clearer for anyone who thought it was truly not happening. And since we are in the business of helping companies cope with climate change, it's good for business.
Do you worry that the ESG pushback could reduce corporations' urgency to save water and be better environmental stewards?
I don't think so. Take the example of the Paris Agreement. The previous U.S. administration withdrew from it, yet no company has changed its plans. That's because they need water and energy to keep operating. They need natural resources and to procure them in a way that makes business sense. If you produce more or better products with less water and energy, you create less waste, reducing costs and carbon footprint.
What industries do you see most ripe for reducing water usage and, therefore, offering Ecolab the biggest opportunities?
To put it in perspective, 150 companies use one-third of the world's water resources. You can fit them all in a single room, which is pretty cool because you can collectively change things more quickly. There are two groups of companies. There are those with huge potential, such as oil and gas, and those with less potential but which consumers expect will do more. That second bucket includes food and beverage companies like Coke, Pepsi, Nestlé, et cetera. That's because they're related to agriculture, which is behind 70% of water usage on the planet. They have to be cost-competitive, because while there is a theory that people are ready to pay more for sustainable products, it's not really true for the masses.
And there are also companies making microchips rather than potato chips.
You have data centers everywhere around the world, and that's growing exponentially. We as an economy will need way more of those for our computers since the large servers use a lot of energy and need to be cooled down. And you need a lot of water for that. As for phones, you need 50 gallons to produce their chip. So, tech companies have huge potential and are making the most progress.
You can argue that the oil and gas and paper industries are fading. So, what helps Ecolab grow?
Without stepping into a political debate, I think that in the next 30 years, we will need more oil and gas than we use today. Renewable energy is still a small percentage of the total energy production globally, and the energy from fossil fuels will still be the bulk of it. It's turned into a growth opportunity because companies realize they can produce oil more sustainably at a refinery, whereas now, you still have to use more water than oil to make the fuel. We can help these big brands reduce their water usage and carbon footprint. There is also the rise of electric vehicles, for which you need a huge amount of lithium. That comes from mines, and we must use underground water for that. And there is, of course, helping brands like McDonald's, Coca-Cola, Pepsi, Nestlé, and Tyson hit their ESG goals.
Almost all of Ecolab's business is products and services for corporations, with virtually nothing for the general consumer. This year, you announced your first-ever suite of cleaning products selling at Home Depot. Is this the beginning of an effort to go after the consumer market?
No. This line at Home Depot focuses on the pros or professional contractors. We are always trying to reach new markets and new people. That includes smaller contractors who don't typically buy from us. So two years ago, we approached Ted Decker (CEO of Home Depot) and said, "What can we do here?" As those smaller contractors grow, they become bigger companies, and then they shift to our more traditional model. So it's a new end market for us to capture.
Get to know Beck:
He's a trained rescue helicopter pilot in his native Switzerland.
Beck worked on a space shuttle project for the European Space Agency early in his engineering career.
He speaks four languages—English, French, German, and Italian—and a fifth if you include the Swiss-German dialect.
This story was originally featured on Fortune.com
Reuters
Mon, August 28, 2023
Arab League Summit, in Jeddah
CAIRO (Reuters) - A group of Egyptian politicians fired rare, pointed critiques at Egypt's President Abdel Fattah al-Sisi, and said they were considering challenging him in upcoming elections, depending on the fate of jailed leader Hisham Kassem.
The Free Current Movement, or al-Tayar al-Hurr, was formed this summer from a collection of liberal opposition groups and figures who say their main issue is the country's deteriorating economy.
Kassem, the group's outspoken founder, was arrested on charges of slander and verbal assault last week and remains in jail until his trial begins on Sept. 2.
Members of his coalition described his arrest as politically motivated, and said they would decide on participation in elections based on what happened with his case, as well as guarantees of a free election.
While the coalition is not seen as posing a major threat to Sisi, who is expected to run for his third term in elections early next year following constitutional amendments, its pointed criticism of the government is rare.
"We need change. We need a new president, a new government, a new parliament if we want Egypt to return to the tide of modernity," said businessman and politician Akmal Kortam.
A sharp currency devaluation and record-high inflation have stirred grumblings among Egyptians, most recently spurred by power cuts.
Egypt has cracked down on political dissent under Sisi, who took power after leading the 2013 ouster of the Muslim Brotherhood's Mohammed Morsi, arresting tens of thousands, including prominent challengers in past elections.
The government has sought to address freedom and human rights issues in recent years, including opening a national dialogue with civil society leaders and granting amnesty for some prominent prisoners.
Critics have dismissed the measures as cosmetic and say arrests have continued.
Sisi's rise to power was supported at the time by a wide swathe of Egyptian politicians, following turmoil after the 2011 revolution that ousted former President Hosni Mubarak.
"The president must ask himself, does he still have the popularity and approval that he had 6, 7, 8 years ago?" said head of the Reform and Development Party Mohamed Anwar Sadat.
"We have a big challenge in the coming months because people will definitely not bear another increase in prices or the exchange rate."
(Reporting by Nafisa Eltahir; Editing by Bill Berkrot)
Police say deadly Montreal fire in March is now being criminally investigated
Associated Press
Mon, August 28, 2023
MONTREAL (AP) — A fire in March that killed seven people in a heritage building in Old Montreal has turned into a criminal investigation, Canadian police said Monday.
Montreal police Insp. David Shane said traces of fire accelerants were found at the site, which can help explain why the flames spread so quickly.
He said experts have found out where the fire started, and have ruled out an accidental cause.
Seven people died in the March 16 blaze, including a long-term resident of the building, and six people who were staying in short-term rentals.
Inspectors had reported multiple fire code violations during visits in the years leading up to the fire in the building.
Shane said a coroner’s inquest into the deaths has been suspended while the criminal investigation follows its course.
Montreal’s mayor vowed earlier this year to tighten regulation of Airbnb after the fire. It included Airbnb units in a historic city section where they are banned.
Associated Press
Mon, August 28, 2023
The logo for the Farmers Insurance Group is seen on the North Course during the first round of the Farmers Insurance Open golf tournament, Jan. 26, 2012, in San Diego. Farmers Insurance will lay off 11% of its workforce — or about 2,400 employees — as part of restructuring efforts, the company announced Monday, Aug. 28, 2023.
NEW YORK (AP) — Farmers Insurance said Monday it will lay off 11% of its workforce — about 2,400 employees — as part of a corporate restructuring aimed at increasing its efficiency and long-term profitability.
The California-based insurer owned by Swiss giant Zurich Insurance Group said the job cuts will impact all lines of its business. Monday was the last working day at the company for most employees impacted by the layoffs, Farmers confirmed to The Associated Press.
In a statement announcing the job cuts, Raul Vargas, Farmers Group Inc. president and CEO, alluded to “existing conditions” in the insurance industry.
“As our industry continues to face macroeconomic challenges, we must carefully manage risk and prudently align our costs with our strategic plans for sustainable profitability," Vargas said. “Our leaner structure will make us more nimble and better able to pursue opportunities for growth and ultimately make Farmers more responsive to the needs of our insured customers and agents.”
In recent months, Farmers — along with other insurers including Allstate and State Farm — have pulled back on property insurance in states like Florida and California. As these regions become increasingly susceptible to natural disasters, from hurricanes to wildfires, in the era of climate change, the insurers have cited the need to reduce risk exposure and operating costs — but critics have accused the companies of exacerbating the cost-of-living crisis.
Monday's layoff announcement from Farmers follows mass job cuts seen at a handful of companies in the past year — including T-Mobile, Google, Meta, Amazon and Microsoft. Beyond the tech sector, layoffs have also hit Disney park employees, newspapers and some higher education jobs.
Farmers Insurance lays off 2,400 workers as insurers pull back from California
Sam Dean
Mon, August 28, 2023
A car drives through flooding during Tropical Storm Hilary in Lincoln Park on Aug. 20. Insurance providers have pointed to a rising risk of extreme weather events as they've reevaluated their business in California. (Dania Maxwell / Los Angeles Times)
Farmers Insurance, one of the nation's largest property and casualty insurers, is laying off 2,400 workers, representing 11% of its total workforce.
The Los Angeles-based company cited a need to reduce operational costs and focus on "long-term sustainable profitability" in an announcement Monday to explain the job cuts.
This has been a chaotic year for the California insurance market, and this isn't the first dramatic move that Farmers, the second-largest home and auto insurer in California, has made in recent months.
In July, the company announced that it was not planning on accelerating its growth in the state, and would keep writing new policies at the same pace as before. In a typical year, this would not constitute news — but in 2023, it amounted to a shot across the bow for homeowners, builders and state regulators.
State Farm, the top home insurer in the state, had announced in May that it was hitting pause on writing new home insurance policies in the state, saying that rising construction costs from inflation, ballooning reinsurance fees and growing wildfire risks were making it difficult to add more policies. Allstate, sixth largest in the state, hit pause last year. Farmers' announcement was an admission that it didn't intend to fill the void left by its competitors' pullback.
Read more: Farmers, California's second-largest insurer, limits new home insurance policies
“Given the existing conditions of the insurance industry and the impact they are having on our business, we need to take decisive actions today to better position Farmers for future success,” Raul Vargas, president and chief executive of Farmers Group, said in the layoff announcement Monday. “As our industry continues to face macroeconomic challenges, we must carefully manage risk and prudently align our costs with our strategic plans for sustainable profitability."
The "existing conditions" and "macroeconomic challenges" that Vargas refers to are the same rising costs for reconstruction and risk of severe weather events, including fires, floods and tropical storms, that State Farm pointed to earlier this year. Those factors also have driven up the costs of the reinsurance policies that insurance companies take out to cover their own losses in case of major catastrophic events.
Farmers also said it would stop selling new homeowners policies in Florida earlier this year, and plans to pull back further in that state, according to reporting by Insurance Journal.
Despite these negative trends, Farmers has been faring better than most of its competitors in California. State Farm's home and auto lines lost more than $2 billion in the first three months of 2023, with $1.8 billion in losses coming from its car insurance division alone. Farmers, by comparison, lost about $150 million in the same period.
While the major players in California insurance have pulled back from the market, insurance industry groups have been clamoring for reforms to the state's regulatory system. Since 1988, when California voters approved Proposition 103, insurance companies have only been allowed to increase their rates with the approval of the California Department of Insurance, currently led by Insurance Commissioner Ricardo Lara, according to a strict set of transparency and financial requirements.
Lawmakers in Sacramento have taken notice of the situation in the market — and the industry's arguments.
Read more: State Farm's California freeze: Looming insurance apocalypse or political ploy?
The state Senate Republican Caucus released a public letter to the insurance commissioner last week stating that the "insurance industry is broken" and echoing the industry talking points that companies should be able to use new fire models to set higher rates for homeowners in high-fire-risk zones, pass along reinsurance costs to policyholders and generally speed up the rate increase approval process. Democratic lawmakers, who control the state government, are discussing reforms along similar lines, according to reporting by Politico.
Consumer Watchdog, the nonprofit consumer advocacy group that led the Proposition 103 ballot campaign, called the potential changes a "multi-billion dollar bailout" of the insurance industry in a statement Monday. Harvey Rosenfield, founder of the group, added that "insurance companies are trying to exploit a crisis to get deregulation they have sought for 35 years.”
This story originally appeared in Los Angeles Times.
Sabrina Valle
Mon, August 28, 2023
*
Exxon projects oil, gas to be 54% of world’s needs in 2050
*
CO2 emissions in 2050 to double IPCC's desired scenario
By Sabrina Valle
HOUSTON, Aug 28 (Reuters) - Oil and natural gas are still projected to meet more than half of the world’s energy needs in 2050, or 54%, Exxon Mobil Corp said on Monday, with the world failing to keep global temperature increases below 2 degrees Celsius.
The largest U.S. oil producer projects the world will reach 25 billion metric tons of energy related carbon dioxide (CO2) emissions in 2050, according to its energy outlook published on Monday.
That is more than twice of the 11 billion metric tons the United Nations Intergovernmental Panel on Climate Change (IPCC) say would be needed on average in its Lower 2°C scenarios.
"An energy transition is underway, but it is not yet happening at the scale or on the timetable required to achieve society’s net-zero ambitions," the producer said.
Exxon produces less than 3% of the world's daily crude demand and in May its shareholders overwhelmingly rejected calls for stronger measures to mitigate climate change.
The International Energy Agency (IEA) has been saying since 2021 that much greater resources have to be directed to clean energy technologies to put the world on track to reach net-zero emissions by 2050.
Only two of the 55 technologies needed to reach net-zero emissions by 2050 are “on track,” Exxon said citing the IEA. Emissions will decline only by 25% by 2050 as lower-emission options grow, the company said, below desired scenarios.
Overall, Exxon projects energy-related CO2 emissions will peak at more than 34 billion metric tons sometime this decade as economies and energy demand grow, and then decline to 25 billion metric tons in 2050.
Exxon is investing $17 billion over a six-year span through 2027 in lower carbon emissions technologies such as carbon capture and sequestration and hydrogen. The company says these two technologies, currently not commercial, are a significant promise for hard-to-decarbonize sectors in IPCC Lower 2°C scenarios.
Most of the capital is directed to reducing carbon emissions of its operations and of third parties. Unlike its European peers, Exxon has stayed away from consolidated renewable sources such as wind and solar power. It expects wind and solar to provide 11% of the world’s energy supply in 2050, five times today’s contribution. (Reporting by Sabrina Valle; Editing by Josie Kao)