Governance News 1 June 2022

45 minute read + (PDF download) 01.06.2022 Mark Standen, Siobhan Doherty, Kate Hilder

This week's issue has a strong ESG focus and includes coverage of several significant votes on ESG resolutions as well as the SEC's consultation on two new rule proposals aimed at tackling greenwashing. On the financial services front, the issue includes our key takeaways from ACCC Chair Gina Cass-Gottlieb's address to the AFR banking summit outlining the regulator's enforcement priorities for the financial services sector and separately APRA Chair Wayne Byres' address to the summit and more…

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G7 Climate, Energy and Environment Ministers commit to ending new public financing of the fossil fuel sector by the end of the year
Time to accelerate Europe's green transition? In the wake of Russia's invasion of Ukraine, WEF has convened the CEO Action Group for the European Green Deal
RIAA and TNFD to work together to drive engagement on nature-related issues and drive uptake of the TNFD framework
Global reports suggests that COP26 sparked a surge in the number of companies setting science based targets, but that some companies are struggling to meet their commitments
In Brief | IEA Executive Director Fatih Birol tells leaders at Davos that greater investments in the clean energy transition is required to address both climate change and ensure energy security and that the 'current situation' should not be used to justify large fossil fuel projects that are inconsistent with the net zero goal

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Say on Climate | TotalEnergies shareholders strongly endorse the Say on Climate resolution
Say on Climate | Shell shareholders back the board's climate plan, vote down rival shareholder resolution (though the level of support for both was down on 2021
Methane reporting: Climate Action 100+ flagged and board-backed shareholder resolution secures majority support at Chevron
Climate Action 100+ flagged resolution secures majority support at Exxon, other shareholder ESG resolutions were not carried
AGL suspends proposed demerger plans, announces leadership changes
SOC investment group urges Activision Blizzard shareholders to vote against the election of three directors to signal concern about the company's (allegedly) 'frat house culture'
Report finds support for E&S proposals so far in 2022 is well-down last year
In Brief | Common Spirit Health has flagged that its shareholder resolution calling on gun manufacturer Sturm Ruger commission a third party human rights impact assessment to provide 'more transparency on how their guns are used in violent events' is set to go to a vote on 1 June 2022. Filing resolutions of this kind at other gun manufacturers is part of a broader campaign aimed at reducing gun violence coordinated by the ICCR

Institutional Shareholders and Stewardship Navigation Show below Hide below

SB 1173 update | Mandating divestment of fossil fuels: A Bill that (if enacted) would require CalPERs and CalSTRs to divest their existing fossil fuel investments by the end of the decade has passed the Senate
Say on Climate | More than 20.43% of asset manager M&G's shareholders voted against management's Say on Climate resolution, the board has committee to engaging with shareholders and reporting back in six months

Diversity Navigation Show below Hide below

SSGA offers insights into observed 'best practices' for improving board gender diversity based on recent engagements

Meetings Navigation Show below Hide below

Holding wholly virtual meetings: ASIC's temporary relief has now expired for listed companies

Disclosure and Reporting Navigation Show below Hide below

Tackling greenwashing: SEC consults on proposed new disclosure requirements targeting 'ESG' funds and advisers
In Brief | The Council of Institutional Investors has expressed 'general' support for the SEC's proposed rule on 'The enhancement and standardisation of climate-related disclosure for investors' including support for SEC’s proposed disclosure requirements on climate-related risks, Scope 1 and Scope 2 emissions, and Scope 3 emissions
In Brief | Japan's Financial Services Agency has released a report that among other things, outlines the regulator's expectations of asset managers that provide ESG funds

Markets and Exchanges Navigation Show below Hide below

The UK FCA is seeking feedback on proposals to simplify listing requirements in a bid to attract more 'high quality, growth companies' to list in the UK
In Brief | CHESS replacement project: The latest update from the Payments System Board records that ASIC and the RBA have reiterated their expectation that 'CHESS be replaced as soon as this can safely be done by ASX and users of CHESS'. ASX is also expected to 'consult a broad range of stakeholders on setting a new timeline, and ensure that this timeline provides adequate contingency'

Regulators Navigation Show below Hide below

Planned RBA review | The Treasurer has said that the details of the planned independent review of the RBA will be confirmed 'before long', open letter from six economists emphasises that the review should be independent and 'wide ranging'

Financial Services Navigation Show below Hide below

Top Story | ACCC Chair outlines the regulator's key priorities for the financial services sector
APRA Chair highlights mortgage lending, climate risk and innovation as three key areas of focus for the regulator
APRA has written to PHIs about the proposed levy for 2022-23
ASIC seeks feedback on the proposed extension of its binary options product intervention order until 1 October 2031

Contact

Mark Standen

Consultant, Sydney
- +61 2 9921 4902
- +61 412 104 902
Siobhan Doherty

Partner, Sydney
- +61 2 9921 4339
- +61 413 187 544

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