Governance News 22 March 2023

50 minute read + (PDF download) 22.03.2023 Mark Standen, Siobhan Doherty, Kate Hilder

This week's issue has a strong ESG focus. We cover BlackRock CEO Larry Fink's annual letter, the release of the IPCC report and updates on the progress of various shareholder ESG resolutions. On the financial services front, we provide a status update on the long-awaited FAR and CSLR and more…

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The lack of recent progress towards narrowing Australia's persistent gender pay gap underlines the need for reform says WGEA
UK government urged to back mandatory ethnicity pay gap reporting
In Brief | Research finds Canadian boards are more gender and ethnically diverse than their US peers: As at 1 January 2023, women hold 33.7% of board seats at Canadian companies included in the S&P/TSX Composite index, while directors from minority ethnic backgrounds hold 14.1% of directorships according to analysis from ISS Corporate Solutions

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Board succession planning in focus | Neuberger Berman predeclares its support for a shareholder CEO succession planning proposal at Starbucks, NBIM to oppose it
Follow This urges BP shareholders to defy the board and back its Scope 3 resolution ahead of the 27 April meeting
ShareAction flags shareholder ESG resolutions at BP, Glencore and Citigroup among its 'resolutions to watch'
Transparency around management of forced labour risk: Tulipshare pens open letter to Nike expressing 'grave concern about Nike's unresponsiveness' to engagement efforts
Phillips 66 recommends shareholders vote down shareholder ESG proposals ahead of 10 May 2023 meeting
SEC allows Amex to block shareholder firearms financing proposal
PACCAR unsuccessful in blocking shareholder climate lobbying proposal
USPS unsuccessful in blocking shareholder climate proposal on procedural grounds
Eli Lilly unsuccessful in blocking four shareholder ESG proposals
In Brief | Woodside has recommended shareholders reject ACCR's climate resolution ahead of the 28 April 2023 AGM. ACCR (together with Vision Super and Betashares), has called on shareholders to vote against the reelection of board sustainability committee members over the 'board's repeated failure to present a credible climate strategy'

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Top Story | Change in tone (but not approach)? Key takeaways from BlackRock CEO Larry Fink's annual letter

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Still time to 'secure a liveable future' (if urgent action is taken now): IPCC releases landmark report, UN Secretary General calls for an immediate acceleration on climate action
Insurers call for extension of disaster resilience funding
Status update: Safeguard Mechanism (Crediting) Amendment Bill 2022
In Brief | Status update: The National Reconstruction Fund Corporation Bill 2023 has progressed to second reading stage in the Senate (having passed and been amended in the House of Representatives)
In Brief | 'Securing net zero emissions at least cost' identified among the five key drivers of economic growth in the Productivity Commission's latest report. Among other things, the report recommends positioning the 'Safeguard Mechanism to be Australia's primary emissions abatement mechanism', removing measures that are not complementary to the Safeguard mechanism and increasing the integrity of carbon offsets recognised by the Safeguard Mechanism
In Brief | New Consultation: What principles should guide the government's decisions about which areas outside of existing national parks and Indigenous Protected areas should be conserved? The government is seeking feedback on proposed principles to guide the recognition of 'other effective area based conservation measures'. The due date for submissions is 21 April 2023

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Proposed new requirements for public companies to disclose subsidiary information: Draft Bill released for consultation
324 of Aboriginal and Torres Strait Islander Corporations deregistered over failure to lodge reports
'Strict enforcement': ASX has issued a reminder that firms risk automatic suspension for failing to lodge periodic reports on the due date

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Top Story | FAR status update: FAR is another step closer, 2023 FAR Bills have passed House
Top Story | MinterEllison's Submission to Treasury's Token Mapping Consultation paper
DDO enforcement | Number of interim stop orders issued by ASIC increases to 27
DDO relief | ASIC has provided conditional DDO relief for life insurers when reissuing life insurance policies in certain circumstances
Government consults on miscellaneous amendments to Treasury portfolio laws
Accessible/inclusive banking: The ABA is consulting on a review of the ABA accessibility principles
SVB collapse: US Federal Reserve to conduct review into the supervision of SVB
In Brief | Hayne implementation: The Bills to establish the CSLR passed the House of Representatives on the 22 March 2023 without amendment. The Bills are yet to pass the Senate
In Brief | ASIC's 'proactive review' of the Financial Adviser Register has resulted in the regulator correcting the authorisation status or cease dates of over 1300 individuals to ensure that the register provides accurate information about advisers to consumers

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Greens introduce 'right to disconnect' Bill
Former Tesla director convicted of insider trading, banned from being a director for five years, forfeits proceeds to the Commonwealth
AML/CTF enforcement: AUSTRAC accepts EU from PayPal
Latitude the target of a 'malicious cyber-attack which remains active'
SEC has reopened consultation on proposed cyber risk management rules for registered investment advisers