Governance News 20 October 2021

60 minute read (PDF download) 20.10.2021 Mark Standen, Siobhan Doherty, Kate Hilder

This issue has a strong risk focus. It includes several significant developments relating to climate-risk disclosure and insights from the RBA and ASIC on their work programs in this area. The issue also includes coverage of the long-awaited Bill proposing to introduce permanent changes to meeting and execution requirements, the release of APRA's remuneration guidance CPG 511 and more…

Boards and Directors Navigation Show below Hide below

How to build better financial services boards?

Remuneration Navigation Show below Hide below

APRA has released final CPG 511 Remuneration
In Brief | Stronger clawback rule? SEC has re-opened consultation on proposed rule change that would see executives having to pay back any incentive-based compensation paid to them based on misstated financials for the three years leading up to the misstatement, regardless of whether the misstatement was due to fraud, errors, or any other factor

Shareholder Activism Navigation Show below Hide below

Shareholder Paris-targets resolution filed at Incitec Pivot Ltd
Say on climate: A majority of BHP shareholders have reportedly backed the company's transition plan at the London AGM
CBA AGM: Shareholder transition planning resolution received 15% support
In Brief | In Brief | Chevron has set a Scope 3 emissions-reduction target following a majority vote on a shareholder resolution coordinated by FollowThis earlier in the year. FollowThis considers this underlines the effectiveness shareholder resolutions, in combination with engagement, in driving change adding that further engagement is needed to push Chevron to adopt a more ambitious target

Institutional Shareholders and Stewardship Navigation Show below Hide below

DOL consults on proposed removal of barriers to pension funds factoring ESG considerations into their decision making
In Brief | The Asian Investor Group on Climate Change, Ceres and the Investor Group on Climate Change have jointly released a report - the G20 Countries’ Climate Policy Report Card – measuring G20 countries’ progress towards five policy recommendations which the groups consider key to attracting green investment. The report ranks Australia among the least attractive countries from a green investment perspective alongside Argentina, India, Indonesia, Mexico, Russia and Saudi Arabia. The UK and the EU are ranked as the most attractive destinations (though the group considers they have substantial improvements to make)

Meetings and Proxy Advisers Navigation Show below Hide below

Top Story | Status update: Legislating permanent changes to meeting and execution requirements – Bill introduced

Disclosure and Reporting Navigation Show below Hide below

Support for the TCFD reporting framework has spiked: Fourth TCFD Annual status report highlights the greatest progress to date on TCFD adoption
Scope 3 disclosure the new baseline: The TCFD has issued updated implementation guidance together with new guidance specifically on transition planning and use of metrics
Lifting standards of climate risk governance and disclosure is a key focus for ASIC
In Brief | The UK government has released a its plan - 'Greening Finance: A Roadmap to Sustainable Investing' – setting out an indicative pathway and timeframe for the introduction of a new economy-wide Sustainability Disclosure Requirements framework
JobKeeper disclosure: ASIC has issued a suggested form of notice and guidance for listed entities

Regulators Navigation Show below Hide below

ASIC Annual Report 2020/21 released

Financial Services Navigation Show below Hide below

Top Story | Key word guidance COVID-19 business interruption insurance policies
ASIC calls on general insurers to urgently review their pricing practices and update their systems/processes to ensure consumers receive the full value of any discounts offered
Rebuilding trust in the sector: ASIC calls on insurers to focus on conduct risk, embrace regulatory reforms and invest in appropriate systems
APRA calls on insurers to step up their focus on risk management and customer needs
ASIC has released updated guidance about the distribution of superannuation products following recent law reforms, flags plans to conduct a thematic review
ASIC consults on extending its CFD product intervention order
FPA backs FSC's proposed advice reforms in principle
Financial Advice: ASIC further extends temporary COVID-19 'record of advice' relief measure

Risk Management Navigation Show below Hide below

Top Story | Transforming GCRA: APRA to roll out a risk culture survey to APRA-regulated entities
RBA underlines climate risk as a 'first order risk' to the financial system
Childrens Investment Fund Foundation calls on central banks to address the climate emergency
ASIC calls on reporting entities to urgently review their whistleblower policies, processes and systems to ensure they comply with legal requirements 'without delay'

Restructuring and Insolvency Navigation Show below Hide below

Consultation on possible changes to the treatment of corporate trusts under insolvency law

Contact

Siobhan Doherty

Partner, Sydney
- +61 2 9921 4339
- +61 413 187 544

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