Governance News 21 February 2024

35 minute read (PDF download) 21.02.2024 Mark Standen, Siobhan Doherty, Kate Hilder

This week's issue has a strong ESG focus. Human/worker rights and climate change continue to be the top themes in the 344 shareholder ESG proposals filed so far this year by ICCR members - nature-risk and separately, AI (human/worker rights implications) are also emerging as areas of increasing shareholder focus. Also, investors are sharpening their expectations around direct and indirect climate lobbying (through trade organisations) with AXA IM warning heavy emitters they may face 'against' votes at upcoming meetings. Separately, New York State Common Retirement Fund has announced divestments from eight oil and gas firms including Exxon on climate grounds and more…

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SOC steps up attack on the Starbucks boards' record on labour issues, calling for immediate disclosure of $240m in 'undisclosed costs and liabilities' ahead of the upcoming meeting
New York State Common Retirement Fund has announced divestments from eight oil and gas firms including Exxon on climate grounds
Green Century withdraws proposal after NXP Semiconductors agreed to develop a climate transition plan
Activists targets Australian energy company chair 'vote no' campaign
ICCR members have filed 344 proposals on a range of ESG issues so far this year, human/worker rights and climate change are the top two proposal categories
In Brief | Global review of shareholder activist activity finds activity levels reached a four year high in 2023. Interestingly, the report flags that the success rate of campaigns in Australia fell significantly compared with 2022 – just 16% of campaigns were classified as wholly successful in 2023 vs 30.7% in 2022

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Response to anti-ESG backlash? Major asset managers retreat from Climate Action 100+
Sixty strong university coalition calls on banks to provide alternatives to fossil fuel financing as first step towards (potentially) shifting funds
Indirect climate lobbying as a form of 'greenwashing' - Companies urged to reassess their industry association memberships, and step up their disclosure
(In)direct climate lobbying in focus: AXA IM to vote against high emitters that lobby (directly or indirectly) against the goals of the Paris Agreement from this year
Say on Climate | Ethos attacks Novartis over 'advisory' (as opposed to binding) 'Say on Climate' vote
ISSB Implementation | Malaysia consults on proposed ISSB implementation approach
Shipping pollution | European Parliament announces informal agreement on stricter measures
In Brief | Friends of the Earth, ClientEarth and Good Law Project plan to take the UK government to the High Court (again) over what they consider to be a deficient climate action plan
In Brief | EU Directive targets misleading 'green' practices/claims: The new rules are intended to 'enhance consumers' rights by amending the unfair commercial practices directive (UCPD) and the consumer rights directive (CRD) and adapting them for the green transition and the circular economy'. Among other things, the measures are intended to protect consumers against misleading 'green' claims, including about unfair claims about carbon offsetting

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Top Story | Property, software and the ACCC's fight for merger reform
Consumer protection | ACCC proposed to get 'designated complaints function' from July 2024

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Top Story | Superannuation trustees and FAR: Who are your significant related entities?
Super Consumers Australia has urged the government to introduce a superannuation industry anti-scam code
Consumer group CHOICE says health insurers are using 'sneaky tactics' to increase gold cover premiums at a much higher rate than government figures indicate
ASIC Chair stands by ASIC's 'strong' enforcement record
APRA consults on proposed amendments to the operational risk financial requirement for superannuation
Financial Advice | AFCA publishes 'lead decision' to assist in determining 'Dixon' complaints
Competition in the banking sector | Australian Competition Tribunal green lights ANZ's proposed acquisition of Suncorp Bank

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Chartered Governance Institute urges the UK government to prioritise completion of much-needed (but currently stalled) audit reform

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Modern Slavery | AU$11.9 trillion investor coalition calls on the Australian government to prioritise the establishment of a national compensation scheme for victims of modern slavery
Modern slavery | Proposed EU Forced Labour Regulation should have a remediation focus, lower threshold for initiating investigations says Anti-Slavery coalition
Government convenes new Artificial Intelligence Expert Group to advice on 'options for AI guardrails'