Governance News 15 June 2022

40 minute read + (PDF download) 15.06.2022 Mark Standen, Siobhan Doherty, Kate Hilder

This issue has a strong risk focus and includes coverage of several cyber-risk related developments including ASIC's latest reminder to firms to take steps to improve their cyber resilience, and in the UK, plans to grant UK financial regulators new powers over 'critical third party providers'. On the ESG front we cover the majority vote at Caterpillar on a shareholder Scope 3 emissions reduction resolution as well as ASIC's new greenwashing guidance. This issue also includes coverage of various key financial services developments and more…

Boards and Directors Navigation Show below Hide below

UK Inquiry to examine the role, responsibilities and accountability mechanisms for non-executive directors in government departments

Diversity Navigation Show below Hide below

EU to mandate gender quotas for listed company boards
Women on track to hold 50% of Russell 3000 board seats by the end of the decade
In Brief | A survey conducted by US consultancy Buck, has found that perceived employer commitment to DEI issues may be an important factor in staff retention, especially among younger employees. Buck found there is a 'direct correlation between employees and their likelihood to want to leave the organisation if they think diversity in cultures and backgrounds are not respected, their company is not committed to DE&I, or their company does not provide diverse offerings for a diverse workforce'
In Brief | PRI has released a questionnaire to assist institutional investors to understand how investment managers and investment consultants approach DEI within their own organisations, as well as through their investment activities

Shareholder Activism Navigation Show below Hide below

98% of Caterpillar Inc shareholders back Climate Action 100+ flagged shareholder climate proposal
'Ambitious' shareholder climate proposals are leading to concrete change says Green Century

Institutional Shareholders and Stewardship Navigation Show below Hide below

BlackRock has reiterated that it is working towards its 'long term aspiration' for all clients to have the option of voting in line with their own preferences
Accelerating climate action: Canadian investor coalition has identified 40 TSX-listed companies on which it will target its engagement efforts

ESG Navigation Show below Hide below

Consumer group CHOICE says Australian consumers are factoring green considerations into their purchasing decisions, but that many are uncertain about whether to trust carbon neutral claims
In Brief | The Glasgow Financial Alliance for Net Zero (GFANZ), has launched a new Singapore based, Asia-Pacific network (supported by a new expert advisory board) to help accelerate the region's transition to a net zero economy through engagement with financial institutions and policymakers across the APAC region
In Brief | A more holistic approach: The IGCC has released a discussion paper outlining how investors could drive progress towards a more circular economy, which the IGCC considers would not only help reduce emissions but also 'restore resilience and protect the long-term financial interests of beneficiaries'. The paper outlines the benefits of focus on a circular economy, and how investors could integrate these considerations into their existing governance, engagement and investment decision making frameworks
In Brief | ISS has released a Modern Slavery Scorecard aimed at assisting investors to more effectively assess modern slavery risks in companies across their portfolios

Disclosure and Reporting Navigation Show below Hide below

Top Story | How to prepare for financial reporting sustainability requirements
Top Story | ASIC issues new greenwashing guidance, urges issues (and others) to review their current practices
In Brief | The UK Pensions Fund Regulator has outlined its expectations ahead of the first wave of reports produced by in line with the (TCFD-aligned) Climate Change Governance and Reporting Regulations. The regulator has said that it does not anticipate it will need to issue any penalty notices to trustees of schemes that publish their TCFD reports in the first wave unless the scheme fails to publish the report or where it is clear the trustee has not 'made a genuine effort to comply with the regulations'

Regulators Navigation Show below Hide below

Policy paper flags plans to give UK financial regulators new powers to regulate certain 'critical third party' service providers
US regulator seeks initial views on potential options to strengthen its oversight of climate-related financial risk

Financial Services Navigation Show below Hide below

Top Story | Why financial services needs a holistic approach to managing ESG
Hayne implementation | ASIC issues information sheet on when and how the regulator will issue warnings and reprimands to financial advisers
APRA to delay commencement of proposed amendments to SPS 310
ASIC action against payday lender welcomed by consumer advocates, government facing calls to prioritise the SACC Bill
APRA has finalised proposed revisions to the credit risk management framework for ADIs
Regulation of BNPL? Consumer groups have strongly welcomed the government's (reported) plans to regulate the sector
In Brief | The Bank of England's first assessment of the eight major UK banks’ preparations for resolution under the Resolvability Assessment Framework has concluded that if a major UK bank were to fail, it could 'do so safely, remaining open and continuing to provide vital banking services to the economy. Shareholders and investors, not taxpayers will be first in line to bear the costs, overcoming the "too big to fail" problem'