• Airbnb has reportedly tied executive bonuses to the achievement of social goals including safety and sustainability ahead of its anticipated IPO

• Integration of ESG is becoming 'commonplace': State Street has released the findings of research examining the factors driving institutional investors to adopt ESG, and the key barriers to ESG adoption 
• MSCI calls on investors to integrate ESG considerations into investment processes: MSCI has released the MSCI Principles of Sustainable Investing with the aim of assisting investors to incorporate ESG considerations into their investment strategies, approach to portfolio management and investment research

• Global governance trends report: Russell Reynolds report finds that globally the focus on the environmental and social aspects of ESG and on corporate purpose is increasing, including in Australia

• United Kingdom | The FRC's Financial Reporting Lab has released a report calling for improvements to reporting on workforce related issues 

• APRA has published its inaugural year in review document
• APRA may oversee Facebook's Calibra? APRA has released its submission to the Senate Select Committee on Financial Technology and Regulatory Technology
• In Brief | Funding ASIC's new enforcement approach is more expensive than anticipated? The AFR reports that superannuation trustees, financial advisers and mortgage and stock brokers, have been billed almost 200% more for regulatory supervision by ASIC than the indicative levies released in March 2019 forecast.  The AFR quotes ASIC as saying that the increase is 'primarily driven by the increase in enforcement matters adopted following the recommendations of the financial services royal commission' including ASIC's new approach to litigation  
• In Brief | The CSIRO's submission to the Senate Committee on Financial Technology and Regulatory Technology suggests that Commonwealth legislation should not only be published in words but in machine readable which would enable it to be ready by computers, potentially boosting the adoption of new technology, improving compliance and reducing costs.  ASIC's submission to the same committee flags regtech as a key focus for the regulator and identifies a number of initiatives for FY 2019-2020 including the use of regtech (machine leaning) to monitor compliance with the responsible lending obligations by credit providers

• Top story | ASIC has approved changes to the Banking Code of Practice adopting Hayne Royal Commission Recommendations
• 'Fixing the issue of multiple accounts': A public hearing on legislation proposing to enable workers under workplace determinations/enterprise agreements to nominate their preferred superannuation fund will be held on 29 January
• Making insurance claims handling a financial service: FSC response to the consultation on draft legislation proposing to implement the government's response to FSRC recommendation 4.8
• LIBOR transition: UK regulators have called on firms to accelerate their preparations in order to meet the transition deadline
• In Brief | The Financial Services Council has announced that life insurers will treat people making a claim related to the bushfires as vulnerable customers requiring additional support under its life insurance code
• In Brief | Westpac has appointed Colin Carter as the final member of the three-member Advisory Panel assessing board risk governance and accountability in relation to the issues raised in AUSTRAC's Statement of Claim.  Mr Carter will join previously announced Panel members Ziggy Switkowski and Kerry Schott
• In Brief | Following a recent review, APRA is reportedly investigating the adequacy of private health insurers' technology systems.   Reportedly, APRA is particularly concerned about the level of access third party providers may have to sensitive consumer data and the level of third party security levels
• In Brief | Open finance? UK regulator, the FCA has called for input on the opportunities/risks associated with extending open banking principles to a broader range of financial product offerings including savings, insurance, mortgages, investments, pensions and consumer credit.  Feedback will be used to help inform strategy.  The closing date for comments is 17 March
• In Brief | The case for central bank digital currency? The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Sveriges Riksbank and the Swiss National Bank, together with the Bank for International Settlements, are assessing the potential cases for central bank digital currency (CBDC) in their home jurisdictions and have created a group to share information
• In Brief | National Australia Bank has appointed Simon McKeon as non-executive director, effective 3 February 2020.  Mr McKeon said that joining the board would allow him to 'assist the improvement process from the inside, while also supporting the bank's ambitions at a time of seriously enhanced competition'.  Mr McKeon will remain in his current roles as Chancellor of Monash University and a non-executive director on the boards of Rio Tinto and Spotless Group

Climate Risk

• Top Story | A threat to global financial stability: BIS cautions that climate risk could trigger the next GFC 
• United States | Legislating to ban ports from exporting coal: Richmond California has reportedly joined other West Coast cities in taking steps to choke off fossil fuel exports
• United States | The New York AG will reportedly not appeal against Exxon ruling
• Germany | Back on track to phase out coal fired power generation by 2038?  
• Dutch insurer Aegon has reportedly added 104 coal companies to its exclusion policy
• Reportedly investment in renewable energy decreased in Australia in 2019
• Pledge to remove historic emissions: The AFR reports that Microsoft has set itself the goal of removing as much carbon as it has emitted over the past 45 years
• In Brief | Fossil fuel levy? The Australia Institute has called for the creation of a National Climate Disaster Fund, financed by a levy of $1 per tonne of carbon dioxide pollution resulting from all coal, gas and oil produced in Australia.  According to the Australia Institute it is estimated that the level would raise approximately $1.5 billion a year.  The Australia Institute argues that 'A modest national levy on fossil fuel production would have a strong positive effect on South Australia's economy and it would help communities like Kangaroo Island and the Mt Lofty Ranges in their time of need'
• In Brief | The World Economic Forum's Global Risks Report 2020 released: Climate threats dominate the top five long term risks by likelihood and occupy three of the top five spots by impact
• In Brief | Governor of the Bank of England, Mark Carney has been appointed as the Prime Minister's Finance Adviser for COP26.  Mr Carney's key focus will be 'mobilising ambitious action from across the financial system needed to help achieve the 1.5°C goal of the Paris Agreement' though building the frameworks for financial reporting, risk management and returns to bring the impacts of climate change to the mainstream of private financial decision making and to support the transition to a net zero economy
• In Brief | A Greenpeace report entitled 'It's the finance sector, stupid' has accused banks, insurers and pension funds of being 'as culpable for the climate emergency as the fossil fuel industry' because of their continued funding of fossil fuels, including those attending the World Economic Forum Annual Meeting at Davos

Technology, Privacy and Cybersecurity

• US regulators to report annually on cybersecurity resilience?  US Bill passes the House and will now proceed to the senate

Other Developments

• Top Story | Driving positive organisational culture and behaviour
• Edelman Trust Barometer 2020: Globally, 56% of respondents said that capitalism in its current form does more harm than good
• Uncertainty is the headline issue for CEOs globally? PwC global CEO survey has identified uncertain economic growth in the top ten threats in every geographical region

• ASIC is consulting on proposed changes to guidance on the circumstances in which it will grant relief to facilitate a s444GA share transfer  

• In Brief | The US, Russia and China reportedly remain the world's top three most powerful countries according to US News and World Report rankings.   Though there has been some change further down the list, due to political instability and global uncertainty, Australia's position at 15 is unchanged from last year as is the UK (ranked at 5)