01/09/2025

BIZ & FINANCE MONDAY | SEP 1, 2025

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Indonesians take Holcim to court over climate

GENEVA: Residents of the tiny Indonesian island of Pari, threatened with disappearance by rising sea levels driven by climate change, have come to Switzerland to demand compensation from cement giant Holcim. The case is part of a wider international movement seeking to assign responsibility to major companies for the climate damage hurting the livelihoods of millions of people, especially in the Global South. More than two years after four residents of Pari filed suit against the world’s largest cement firm, two of them have travelled to Switzerland to take part in a preliminary hearing in the landmark case. The hearing to determine whether or not the court will consider the complaint will take place on Wednesday in Zug, where the firm is headquartered. Holcim insists it is “deeply committed to taking action on climate”, but maintains that “the question of who is allowed to emit how much CO2” should be “a matter for the legislature and not a question for a civil court”. Environmentalists say cement production is responsible for around eight percent of global CO2 emissions, and allege that Holcim figures among the 100 largest CO2 emitters among all companies worldwide. The firm thus bears significant responsibility for climate-related loss and damages, the suit maintains, in a case that could be a milestone for plaintiffs from developing countries who take on industrial giants. “I hope the case will become inspirational ... for climate victims” around the world, plaintiff Asmania told reporters in the Swiss city of Lausanne ahead of the hearing, speaking through a translator. Environmentalists have said most of the 42ha island of Pari could be underwater by 2050 due to rising sea levels.

The islanders say saltwater floods have in recent years surged in scale and frequency, battering homes and damaging livelihoods. Asmania, a 42-year-old mother-of-three, who like many Indonesians goes by one name, has already lost her seaweed farm due to flooding, which has also ravished her fish farm, sweeping in dirt and oil that kill off the babies. This year, Asmania began with 500 small fry, “and there are only nine left”, she said, adding that income “is zero”. Another plaintiff, 54-year-old mechanic and beach manager Arif Pujianto, also said climate impacts were taking a dire toll. “The climate crisis is the biggest threat to my life,” he said through a translator. He described how severe flooding of Star Beach had shrunk the pristine stretch of sand by nine metres since 2021, driving away tourists vital for his income. At the same time, tidal floods now regularly reach his bamboo house, rotting the walls and contaminating his well, forcing him to purchase drinking water for his family at a high price. o Residents of tiny island of Pari demand compensation from Swiss cement giant

A concrete embankment, used to stem rising sea levels, is seen around part of Pari island. – AFPPIC

the deal – worth more than half the diamond-rich country’s gross domestic product – had been “quietly” thrashed out for months, vowing: “This is just the beginning.” It was particularly welcome as Boko had to declare a public health emergency on Aug 25 after hospitals ran out of essential medicines due to depleted government coffers. The whopping funding pledges come as largely poor countries in the resource-rich region grapple with sweeping cuts in US aid. “Global uncertainty has intensified under President Donald Trump’s second term, with rising US protectionism, tariffs, and reduced aid flows leaving African states searching for alternative partners,” said economist Brendon Verster at the Oxford Economics Africa think-tank. “Gulf capital thus not only serves as an investment push, but also a geopolitical ballast, offering Africa a hedge against Western retrenchment while giving Qatar and its Gulf neighbours greater influence,” he said. The UAE has also been calling, with Angola signing 44 agreements worth US$6.5 billion during a visit by President Sheikh Mohamed bin Zayed on Aug 25. – AFP helping the islanders, stressed that the amount was only equivalent to 0.42% of the actual costs – in line with estimates that Holcim is responsible for 0.42% of global industrial CO2 emissions since 1750. In addition, the plaintiffs are demanding a 43% reduction in Holcim’s greenhouse gas emissions by 2030 and a 69% reduction by 2040, with HEKS saying this was in line with the Paris Climate Agreement’s goal of limiting global warming to 1.5°C, compared to the pre-industrial era. – AFP

JOHANNESBURG: Qatari investment firm Al Mansour Holding has pledged US$70 billion (RM295 billion) in investments across four southern Africa countries in a 10-day tour, a move analysts call strategic as US funding retreats from the continent. Group leader and royal family member Sheikh Mansour bin Jabor bin Jassim Al Thani has met the leaders of Botswana, Mozambique, Zambia and Zimbabwe to sign commitments of major financing for projects spanning energy, agriculture, tourism and mining. In Maputo this week, he signed a US$20 billion partnership agreement with President Daniel Chapo aimed at supporting government initiatives including in health and education, the Mozambique presidency announced. Days earlier, across the border in Zimbabwe, his company committed to opening its purse to the tune of US$19 billion, including US$500 million for a hydro-electricity project, the government said. It has also pledged US$19 billion for Zambia, reportedly among the biggest bilateral pacts in the country’s history, and US$12 billion in Botswana, the countries announced. Botswana President Duma Boko said company. It is also the first filed by Indonesians against a foreign company for climate-related damage, and the first instance of a Swiss company being sued for its alleged role in such damage. The four plaintiffs in the case are seeking 3,600 Swiss francs (RM19,000) each from Holcim for damages and protection measures such as planting mangroves and constructing breakwater barriers. Swiss Church Aid (HEKS), an NGO

The small workshop where he repairs motorcycles and diesel engines has also been repeatedly flooded, rusting his equipment, he said. If the Swiss court refuses to take the case, Arif said he feared he would lose his beach, his island and even his life. Environmental litigation against governments and fossil fuel firms seen as responsible for the greatest CO2 emissions has surged in recent years, but the case marks the first such action against a major cement

AI boosts Alibaba’s cloud business SHANGHAI: China’s Alibaba said last week artificial intelligence was key to expanding its cloud computing business, as it reported strong quarterly growth in the sector despite its wider operations missing revenue estimates. US-listed shares in the company were up 8% at the market open. “We are seeing an increasingly clear path for AI to drive Alibaba’s robust growth.” For the company overall, total revenue for the quarter ended June 30 came in at 247.65 billion yuan, below the 252.92 billion yuan average estimate compiled by LSEG.

Qatari royal commits US$70 billion to southern Africa during whirlwind tour

said competition had intensified during the period. CFRA analyst Angelo Zino said that while the pivot toward quick commerce and artificial intelligence investments had driven meaningful operational changes across the business, “profitability was impacted by growth initiatives, including user acquisition and technology infrastructure spending”. Wu said Alibaba aims to use its quick commerce business to help build up its overall e-commerce consumer base, targeting a 30 trillion yuan addressable market. Jiang Fan, chief executive at Alibaba’s e-commerce business group, projected the quick commerce segment could contribute one trillion yuan in annualised incremental gross merchandise volume over the next three years. International commerce revenue rose 19%, driven by expansion in key markets such as Europe and the Middle East. Alibaba also said on Friday it had repurchased shares in its logistics unit Cainiao from Fosun International for US$349.8 million. – Reuters

This is the first time Alibaba has reported revenue from its China E-commerce Group, which includes platforms Taobao and Tmall, its new instant commerce business, food delivery app Ele.me and travel agency Fliggy. The group reported 10% growth in revenue. Alibaba’s income from operations decreased 3% on the year, and adjusted earnings before interest, tax and amortisation fell 14% due largely to investments in the instant commerce business. Earlier this week, rivals PDD Holdings and Meituan – both locked in a subsidy-driven battle for market share in the instant retail space alongside Alibaba and JD.com – warned that rising investments would weigh on profits in coming quarters. Executives from both firms

Revenue in Alibaba’s cloud segment surged 26% to 33.40 billion yuan (RM19.7 billion), easily beating an expected 18.4% rise. However, that was eclipsed by weaker than expected growth in its e-commerce business, leaving overall revenue lagging estimates by 2%. Alibaba has been among the most aggressive players in China’s AI sector, unveiling upgrades on an almost weekly basis. Over the past four quarters, the firm has cumulatively invested over 100 billion yuan in AI infrastructure and AI product research and development, group CEO Eddie Wu told analysts on a post earnings call. “Our investments in AI have begun to yield tangible results.