Governance News 12 October 2022

60 minute read + (PDF Download) 12.10.2022 Mark Standen, Siobhan Doherty, Kate Hilder

This week's issue covers several significant ESG, regulatory, financial services and risk related developments including the ACCC's greenwashing sweep, MinterEllison's submission to the Quality of Advice Review, various crypto developments. The issue also features an article offering practical insights into how financial firms can sustainably manage the onslaught regulatory change and more…

Boards and Directors Navigation Show below Hide below

DirectorID deadline approaching for directors appointed on or before 31 October 2021

Remuneration Navigation Show below Hide below

Economic Policy Institute calls for policy action to address 'skyrocketing' CEO Pay at top US companies
In Brief | Just window dressing? An As You Sow report assessed the quality of CEO climate incentives at 47 of the highest carbon emitting companies in the US, from the point of view of requiring meaningful action on climate. The headline finding is that 89% of companies received 'D' or 'F' grades for failing to include a quantitative incentive or any climate-related incentive. Where climate incentives were included, the report found that 'most were negligible, non-quantitative, and lacked specific climate-related pay incentives'

Shareholder Activism Navigation Show below Hide below

News Corp shareholder proposal calls for increased transparency on lobbying activity
'Win for shareholders': Origin to include financial sensitivity analysis in financial reporting in response to shareholder resolution
Majority vote: General Mills Inc shareholders back shareholder plastic reduction proposal (in defiance of management's recommendation)
US Gun safety: Smith & Wesson shareholders reject shareholder proposal calling for the adoption of a human rights policy
Big four banks targeted with similar shareholder resolutions calling on them to rule out fossil fuel financing
AGL board endorses one of four Grok candidates ahead of AGM

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The government has established an investor roundtable to help come up with solutions for tackling national investment challenges
Inequality is a 'systemic risk': Church and charity investors call on FTSE 100 companies to detail the steps they are taking to support their lowest paid employees through the current 'cost of living crisis'
UK investors put companies on notice about employee mental health
UK business and investor coalition calls for the introduction of new UK law mandating human rights and environmental due diligence

ESG Navigation Show below Hide below

Australian government releases 10 year plan aiming to prevent any new extinctions, conserve 30% of Australia's landmass
Closing the hole in the ozone layer: Package of legislation introduced to improve the Ozone Protection and Synthetic Greenhouse Gas Management Program
Origin has flagged plans to divest 100% of upstream gas exploration over time, starting with the Betaloo Basin
ESG backlash: Louisiana to divest $794M from BlackRock to 'protect Treasury funds from ESG'
In Brief | Market Forces is pushing for the Australian Broker Network (ABN) to publicly rule out any involvement in a potential coal mining insurance mutual scheme ie any scheme that would help underwrite the establishment and operation of new coal mines and associated infrastructure. This follows reports that certain mining companies may be looking to set up a mutual insurance company (to get around the difficulties of securing insurance) and the reported lack of confirmation from ABN that it will not be involved
In Brief | The government has announced plans to consult on the development of a Commonwealth-led National Energy Performance Strategy. According to the statement, a discussion paper on how to deliver energy efficiency improvements across the economy and help Australia meet its emissions reduction targets is planned to be released 'in coming weeks'
In Brief | Sierra Club, BankTrack and a global coalition of advocacy groups have released an open letter to the Net Zero Asset Managers Initiative (NZAM) calling on NZAM to urgently update its expectations for members in line with the latest Race to Zero criteria including (among other things) setting an expectation that NZAM members pledge to phase out all unabated fossil fuels

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Progress toward increased gender diversity on ASX 300 boards: New report calls for increased female representation on IPO boards
Tackling barriers to increased diverse representation within FTSE 100 and FTSE 250 companies: UK regulator releases report

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Top Story | ACCC warns over greenwashing and sustainability claims
Greenwashing | The ACCC has launched two 'internet sweeps' targeting greenwashing and fake reviews
Modern Slavery reporting | GSSB launches process to update labour related GRI Topic Standards
In Brief | The SBTi has released a new standard method for including land-based reductions and removals in science-based targets: The Forest, Land and Agriculture (FLAG) Science Based Target Setting Guidance

Regulators Navigation Show below Hide below

GCRA, cyber and operational resilience and climate risk highlighted by APRA Chair as some of the key areas on which APRA is currently focused
Review of ASIC Industry Funding Model: Discussion paper released
US Federal Reserve to run pilot climate scenario analysis exercise next year
In Brief | The ABC reports that ASIC's record on investigating and taking action on reports of misconduct is set to come under scrutiny by a Senate Committee following the release of a report suggesting that the regulator is failing to take action on the majority of complaints it receives

Financial Services Navigation Show below Hide below

Top Story | Decrypting crypto regulation: Part 1
Top Story | Building a sustainable system to manage regulatory change
Top Story | Response to Treasury Quality of Advice Review consultation paper
Liberal Senator to push for regulation of crypto: Senator Andrew Bragg has released a draft Bill for consultation
Consumer Credit | ASIC has commenced action against Latitude Financial and Harvey Norman over (allegedly) misleading advertising
Potential policy options to address the issue of debanking: Issues paper released
Regional Banking Taskforce final report released
ASIC has released new and expanded remediation guidance (RG 277)
ASIC bans director for three years after companies fail to pay AFCA determinations
In Brief | Following consultation, on 27 September 2022, APRA finalised the capital framework for private health insurers. The framework takes effect from 1 July 2023
In Brief | Following a thematic review of the management of outsourcing arrangements by superannuation trustees APRA has published an article highlighting areas for improvement and insights into better practices
In Brief | The Banking Code Compliance Committee has released a guidance note setting out the BCCC's expectations around how subscribing banks should identify, record and report breaches of the 2019 Banking Code of Practice

Risk Management Navigation Show below Hide below

Top Story | CDR: Consultation on Action to Initiation begins
Are Australian boards global outliers on cyber? New report suggests this may be the case
OAIC and ACMA open investigations into the Optus data breach
Optus has commissioned Deloitte to undertake an independent investigation into the recent data breach
Optus data breach | Planned changes to enable data sharing with APRA-regulated financial institutions
APRA has called on regulated entities to 'harden' their cyber controls in the wake of the Optus cyber attack
Second Singtel company targeted in cyber incident
Costa group targeted by phishing attack, risk some former employees' personal information may have been exposed
AUSTRAC announces probe into betting company Entain
Top Story | New Respect@Work Bill shifts the focus from response to prevention
Lifting standards in the House: Parliamentary Committee to inquire into recommendations 10 and 27 of the Set the Standard Report