Governance News 18 October 2023

40 minute read (PDF download) 18.10.2023 Mark Standen, Siobhan Doherty, Kate Hilder

This week's issue has a strong financial services focus. We cover several significant developments including the launch of separate consultations on proposed reforms to the regulation of Australian payment systems and the government's proposed framework for regulating digital asset platforms. On the ESG front, the landmark sovereign bond case – O'Donnell v Commonwealth - has settled, NSW is set to legislate emissions reduction targets and more…

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Green Century targets Deere tractor company with shareholder proposal
Costco commits to five year plastic reduction plan and increased disclosure following shareholder engagement

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Supporting businesses to cooperate on environmental goals (without falling foul of competition laws): UK competition regulator launches new guidance
O'Donnell v Commonwealth: Parties agree to settle landmark sovereign bond case
NSW to legislate 2030 and 2050 emissions reduction targets, create a new monitoring body
Reclaim Finance criticises the French parliament over its 'Say on Climate' backdown
Postponed: South Korea delays introduction of ESG disclosure requirements until 'after 2026'
Independent review of the Australian Climate Service announced
In Brief | Steel emissions: A report by IEEFA evaluating how five mining companies that supply raw materials for steelmaking plan to reduce their emissions identifies that two of these companies have no clear targets to cut their Scope 3 (value chain) emissions. These emissions have a huge impact on the climate, and IEEFA suggests these companies may face more scrutiny from investors who want them to achieve net zero by 2050

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Anti-ESG proposal voted down by P&G shareholders
Remuneration proposals attract protest vote at CSL
Treasury Wine Estates shareholders deliver 'first strike'

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Top Story | Proposed reforms to the regulation of Australian payment systems
Top Story | ASIC reiterates calls for insurers to prioritise 'the basics'
Finding solutions to affordability and accessibility challenges facing the insurance sector needs collaboration says APRA
Australia's major banks pass 'severe but plausible' stress tests, but no room for complacency says APRA Chair
Crypto regulation: Proposal paper released for consultation
ASIC Chair outlines the case for strong crypto regulation and enforcement to protect against consumer harms
In Brief | Enforcement is a strong focus in ASIC's 2022-23 annual report with the report. Key outcomes highlighted nclude: ASIC's first enforcement action over (alleged) greenwashing, exercising DDO powers to target poorly designed products, reviewing businesses' cyber resilience practices and focusing on scam prevention and detection by the major banks
In Brief | APRA has released its 2022-23 annual report highlighting the actions taken to maintain 'the safety and soundness of Australia’s financial institutions' over the past year. The report highlights examples of ASIC's work to manage the financial and operational resilience of APRA-regulated entities and to protect depositors, insurance policyholders and superannuation members over the period.

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Falling short on tackling online child sexual exploitation and abuse: eSafety Commissioner releases second report highlighting 'serious shortfalls' in how large tech companies are tackling the issue
Strengthening privacy protections | Government reiterates it will work closely with small business on uplifting cyber security capability and support the sector in transitioning to new settings
In Brief | Promoting competition and protecting consumers in digital platform markets: ACCC Chair Gina Cass-Gottlieb has given a speech reiterating the need to implement the regulatory reforms proposed by the regulator to address competition and consumer concerns the ACCC has identified through its digital platforms work – 'The regulatory reforms we’ve proposed will ensure Australia can embrace the opportunities offered by digital platform services and respond to current and future challenges as they arise' Ms Cass-Gottlieb said
In Brief | UK government announces Eleanor Lyons (current Deputy Children’s Commissioner) has been appointed to the role of Independent Anti-Slavery Commissioner for three years. Responding to the announcement, Every Child Protected Against Trafficking (ECPAT) welcomed the appointment as overdue, given it has been vacant for 18 months