Governance News 12 May 2021

60 mins (PDF download)  12.05.2021 Mark Standen, Siobhan Doherty, Kate Hilder

This week's issue includes coverage of the key takeaways from the 2021-22 Federal Budget as well as other key risk, regulatory, financial services and ESG-related developments.

 

Full coverage of this weeks content is now available.

Past issues are available

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https://www.minterellison.com/articles/governance-news-12-may-2021

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Shareholder Activism Navigation Show below Hide below

  • At risk of being accused of 'woke washing'? American Express shareholders endorse calls for enhanced disclosure of the actions being taken by the company to support diversity
  • Activist investor coalition withdraws obesity resolution at Tesco following commitments by the company to set targets to increase its sales of healthier food/drink options
  • Shareholder supply chain risk resolution withdrawn after Kraft Heinz agrees to shareholder demands
  • Successful engagement: Activists secure commitments to reduce the use of virgin plastic from five companies within three months 
     

Institutional Shareholders and Stewardship Navigation Show below Hide below

  • Stepping up stewardship activity (especially on climate issues): BlackRock's Q1 2021 stewardship report released

Other Shareholder News Navigation Show below Hide below

  • 2021-22 Budget: Deregulation measures include funding to modernise business communications

Meetings and Proxy Advisers Navigation Show below Hide below

  • Shareholders back board-endorsed climate resolutions at Rio Tinto
  • Support for a shareholder climate resolution jumps to 21.39%, activists call on the insurer to take note
  • Institutional investor support for a shareholder climate resolution at Barclays was well down on last year, environmental groups have described the drop in support as a 'major concern'
  • Consultation on proxy reforms: Proxy Advisers flag concerns
  • As You Sow Proxy Voting Guidelines 2021 released
     

Financial Services Navigation Show below Hide below

  • Top Story | A welcome development: FFSP Restoration
  • ASIC Quarterly Update Q1 2021: A recap of ASIC's work in key areas over the opening quarter of 2021
  • Consultation on further changes to APS 111 Capital Adequacy: Measurement of Capital
  • ASIC has granted temporary relief from certain dollar disclosures in PDSs for litigation funding schemes
  • APRA confirms changes to ADI quarterly reporting due dates following consultation
  • In Brief | Treasury is consulting on various 'proposed minor and technical amendments' to the Treasury portfolio laws aimed at ensuring they operate as intended by: 'correcting technical or drafting defects, removing anomalies and addressing unintended outcomes'. The deadline for submissions is 25 May 2021
  • In Brief | LIBOR transition: The UK government plans to being forward legislation (when parliamentary time allows) to 'reduce disruption that might arise from LIBOR transition with regard to the potential risk of contractual uncertainty and disputes in respect of contracts that have been unable to transition from LIBOR to another benchmark (so-called “tough legacy” contracts), where the FCA has exercised the powers given to it in the Financial Services Act'
  • In Brief | The Monetary Authority of Singapore (MAS) is consulting on proposed amendments to the Guidelines on Corporate Governance for Designated Financial Holding Companies, Banks, Direct Insurers, Reinsurers and Captive Insurers which are incorporated in Singapore.  The deadline for submissions is 18 June 2021

Accounting and Audit Navigation Show below Hide below

  • Auditor independence: New instrument grants relief from reporting minor financial interests

Risk Management Navigation Show below Hide below

  • Top Story | Royal Commission: Aged Care Quality and Safety – challenges for Aged Care boards
  • 2021-22 Budget: Funding for the implementation of the government's response to the Respect@work report and measures to address gender inequality

Cybersecurity, Privacy and Technology

  • Top Story | The ACCC continues its foray into data privacy in ACCC v Google
  • NSW to become the first Australian state or territory to introduce a mandatory notification of data breach scheme? NSW government consults on new data breach notification Bill
  • Budget 2021-22: The government has announced a $1.2 billion Digital Economy Strategy
  • NSW ICAC finds Service NSW's quality control framework 'failed to adequately address the misuse of information risks'
  • In Brief | Ransomware attack disrupts fuel supplies in some parts of the US: The FBI has confirmed that 'the Darkside ransomware is responsible for the compromise of the Colonial Pipeline networks' and an investigation into the attack has been launched.  In a short statement, the Whitehouse said that it is monitoring the impacts of the incident on fuel supply for the East Coast, and monitoring supply shortages in part of the Southeast.   The Administration is 'evaluating every action' available to 'mitigate the impact as much as possible' and has directed Federal government agencies to 'bring their resources to bear to help alleviate shortages where they may occur'.

Climate Risk

  • Greenwashing? New York City is suing three major oil companies for (allegedly) deceptive advertising
  • 2021-22 Budget: Measures to support planning/response to natural disasters, climate-related measures
  • In Brief | (False) accusations of greenwashing? An energy company has launched legal action against Greenpeace Australia Pacific over a campaign branding it as the 'biggest climate polluter in Australia'.  The company is seeking to have its logo removed from the campaign and has called into question the accuracy of Greenpeaces' claims.  In a statement, Greenpeace branded the company's actions as 'classic scare tactics' designed to 'stifle legitimate criticism'
  • In Brief | Macquarie has outlined plans to accelerate its push towards green financing and has said it will exit coal entirely by 2024. The investment bank has said it will release a detailed plan by the of 2022, and will report annually on progress
  • In Brief | Net Zero is a good idea in principle, but it's also got drawbacks? Climate scientists discuss how the concept of 'net zero' has operated in practice to diminish the sense of urgency around actively reducing emissions in the immediate term, and to perpetuate the belief in 'technological salvation'

Other News Navigation Show below Hide below

  • Top Story | Federal Budget Highlights 2021-22
  • 2021-22 Budget: First home buyer measures announced
  • 2021-22 Budget: Enabling small business to apply to pause/modify ATO debt recovery action
  • Calls for a roadmap to open Australia's borders are growing?
     

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https://www.minterellison.com/articles/governance-news-12-may-2021

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