Governance News 25 May 2022

40 minute read (PDF download) 25.05.2022 Mark Standen, Siobhan Doherty, Kate Hilder

This week's issue has a strong ESG focus and includes coverage of several significant climate votes as well as two reports analysing the effectiveness of the ClimateAction 100+ investor coalition in delivering on its stated goals. On the financial services front, the issue includes an article discussing the impact of the Federal Election on planned FFSP reforms as well our key takeaways from an SIAA 2022 Conference Q&A with ASIC Chair Joseph Longo on a range of topical issues and more…

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ISS finds the level of median shareholder support for 'Say on Pay' resolutions at S&P 500 is at the 'lowest level' since votes became mandatory in 2011
UK High Pay Centre report predicts FTSE 350 pay ratios are likely to widen in 2022
Vanguard confirms it has no expectation that ESG metrics are a standard component in compensation plans
In Brief | No evidence of misuse of ESG metrics: Analysis from Pay Governance LLC confirms there has been a sharp increase in the proportion of S&P 500 companies using ESG metrics, but that there is no evidence that 'executives are using these metrics inappropriately to increase their compensation'

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JP Morgan shareholders reject 'say on pay' resolution; vote down shareholder ESG proposals
Shareholder climate resolution at Chubb secures majority support
Shareholder emissions reduction resolution wins majority support at US Foods
Protest: MN Services predeclares its intention to oppose management-proposed pay and climate resolutions at the upcoming TotalEnergies AGM
'Vote No' campaign targeting the Chair of the Southern Company gains momentum
Caterpillar board recommends shareholders back a Climate-100+ flagged shareholder resolution at the upcoming AGM
Say on Climate | Woodside shareholders endorse the company's transition plan, vote down rival climate resolutions and approve the proposed merger
Chevron board recommends shareholders support Climate Action 100+ flagged methane reporting resolution ahead of the 25 May vote
Eliminating deforestation: Home Depot shareholders vote to endorse shareholder climate resolution
Japanese steelmaker JFE commits to strengthening climate governance following successful engagement with shareholder groups
Grok Ventures reiterates calls on AGL shareholders to reject the proposed demerger, HESTA pre-declares its intention to do so

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Top Story | Not all investors are stepping up? Separate reports suggest that the Climate Action 100+ initiative should toughen its approach
How BlackRock voted at the Equinor ASA AGM
Say on Climate | Vanguard clarifies its approach to Say on Climate proposals
In Brief | Say on Climate | 97.7% of Amundi shareholders have backed the asset manager's Say on Climate resolution at the 18 May 2022 AGM despite concerns raised by environmental group Reclaim Finance about Amundi's climate voting record

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Australia commits to setting a new 2030 emissions-reduction target

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Top Story | Uncertainty renewed for foreign licensing relief
ASIC Chair Joseph Longo: Remarks at the SIAA 2022 conference

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Top Story | ASIC's call to mitigate cyber risk – or face regulatory consequences
Survey finds concern about cyber risk is increasing among UK directors, directors lukewarm on their boards' cyber expertise
In Brief | An investment adviser has agreed to pay a $1.5m penalty to settle SEC charges that it inaccurately represented/implied that all investments in the funds it managed had undergone an ESG quality review, when this was not always the case. Co-Chief of the SEC Enforcement Division’s Asset Management Unit and a member of the Climate and ESG Task Force said that the action 'illustrates, the Commission will hold investment advisers accountable when they do not accurately describe their incorporation of ESG factors into their investment selection process'

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In Brief | 'Parliament will resume in a very orderly way': In his first press conference, newly elected Prime Minister Anthony Albanese said that parliament may not resume sitting until July