Governance News 12 July 2023

40 minute read + (PDF download) 12.07.2023 Mark Standen, Siobhan Doherty, Kate Hilder

This week's issue has a strong ESG focus. Greenwashing is again in the spotlight - we cover the ACCC's submission to the parliamentary greenwashing inquiry. Following the release of the ISSB's first two global sustainability standards, Singapore is consulting on its proposed approach to implementation of mandatory ISSB-aligned requirements. Canada is set to do so in coming months. In the UK, consultation has opened on a voluntary Code of conduct for ESG ratings/data providers (ahead of the possible introduction of mandatory rules). On the financial services front, large US banks look set to face tougher capital standards and in Australia, the long-awaited CSLR Bill has received Assent and more….

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UK Pensions Scheme Regulator launches DEI survey
In Brief | New report monitoring progress against ten facets of diversity - Ethnicity, Gender, Age, Nationality, Mental Health, Sexual Orientation, Socio-economic Status, Disability, Religion, and Parenthood – at some of the UK's largest companies flags they have sharpened their focus on DEI, but the level of focus varies significantly across the different facets

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US CEOs are paid more than their UK counterparts and the gap is widening according to analysis from ISS

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Top Story | Will heightened greenwashing regulatory intervention increase class action risk?
Event | Mandatory Climate Reporting Standards – What directors need to know
Greenwashing | ASIC again underlines its continued focus on greenwashing, urges companies to prepare now for the introduction of ISSB-aligned reporting
Singapore: Consultation launched on the proposed approach to implementation of ISSB-aligned, mandatory climate disclosure requirements
ISSB to take over from the TCFD
NZIA dumps emissions disclosure obligation
Mandatory climate reporting | NZ regulator consults on proposal to temporarily exempt certain climate reporting entities from the requirement to include a link to their climate statements in their annual report
CSA to consult on the introduction of ISSB-aligned standards in 'coming months' 10
ESG rating providers in the UK face voluntary Code of conduct (ahead of the possible introduction of mandatory rules)
Hoping to drive a 'step change' in responsible investing: ShareAction calls on institutional investors to adopt its new definition of 'responsible investment'
Report confirms Australia's fugitive methane emissions are likely to have been 'grossly underestimated' to date,
Independent Member Zali Steggall reiterates calls to tighten reporting requirements
Greenwashing inquiry | ACCC submission flags imminent release of updated guidance, limitations of existing regulatory settings
In Brief | TNFD Recommendations set to launch 18 September 2023 together with updated and additional guidance for financial institutions, nonfinancial sectors and biomes
In Brief | Ahead of the introduction of mandatory, ISSB-aligned sustainability requirements in Australia, CA ANZ and Deloitte have released a series of guides to assist financial professionals and finance teams to prepare
In Brief | Professor Pamela Hanrahan has cautioned that in light of 'the regulators' increased focus on greenwashing in forward-looking ESG statements, companies and boards…need to pay even closer attention to whether these statements about the future have a clear and documented reasonable foundation before they are made'
In Brief | In Brief | New report flags that 'many climate-scenario models' used by the financial services sector are 'significantly underestimating climate risk' in that they 'exclude many of the most severe impacts we can expect from climate change' eg tipping points and second order impacts
In Brief | The role of Chairs (and boards) can play in building and enhancing trust through the sustainability transition – new guide released
In Brief | Australia has joined the G7 backed 'Climate Club' - a 'global initiative launched in December 2022 to accelerate the implementation of the Paris Agreement'

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Legislation to establish the long-awaited CSLR is now in force
New CSLR Regulations registered
UK Regulator wants to see banks make faster progress on improving rates for savers
Consultation: Proposed changes to tax laws aimed at reducing compliance costs for general insurers
In Brief | Assistant Treasurer Stephen Jones has said the government plans to consult on what form strengthened obligations on lenders to protect consumers from online scams should take before the end of 2023 with a view to having new requirements in place in 2024
In Brief | The CEOs of Australia's four major banks are set to appear before the House Standing Committee on Economics on 12 and 13 July. Banks' efforts to protect customers from online scams is planned to be one area of focus
In Brief | US Federal Reserve Board Vice Chair has given a speech emphasising the 'fundamental' role capital plays in ensuring the ongoing stability of the financial system and outlining proposals to strengthen capital standards for larger banks. Implementation of the proposed reforms (which are still subject to consultation) is expected to take 'several years'
In Brief | US regulators order bank to pay $250m in fines and compensation to customers over 'junk fees, withholding credit card rewards, and opening fake accounts'

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FRC considers continued supervision of the big audit firms remains necessary following the latest round quality inspections

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ASIC imposes five year ban on director over their involvement in phoenix activity
In Brief | The AASB-AUASB have reissued their joint publication Going Concern and Related Assessments which outlines director and management responsibilities in assessing solvency and going concern and how this impacts on the preparation of financial statements and auditor responsibilities

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Stronger protections for telco customers in financial hardship: New enforceable industry standard to be rolled out, existing Code to be strengthened
Parliamentary Inquiry into Australia's Human Rights Framework: Time to introduce an Australian Charter of Human Rights?
In Brief | As part of its five year inquiry into markets for the supply of digital platform services in Australia and their impacts on competition/consumers, the ACCC has released an issues paper seeking feedback about data broker services in Australia. The due date for submissions is 7 August 2023

Misconduct and Liability Navigation Show below Hide below

In Brief | Markets Disciplinary Panel has handed down a $4.5m penalty to one of Australia's largest retail broking businesses over (admitted) breaches of market integrity rules. Announcing this, ASIC said that the outcome 'sends a clear message to market participants that breaches of market integrity rules will result in substantial penalties that should not be seen as a cost of doing business'
In Brief | Commonwealth penalty unit increase: The value of the Commonwealth penalty unit increased from $275 to $313 effective from 1 July 2023. The Commonwealth penalty unit is automatically adjusted in line with the Consumer Price Index (CPI) every three years from 1 July 2023

Other News Navigation Show below Hide below

Top Story | FIRB Update: Important changes to the foreign investment regime in Australia
Top Story | MinterEllison's Guide to the National Anti-Corruption Commission

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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