Governance News 25 October 2023

45 minute read (PDF download) 25.10.2023 Mark Standen, Siobhan Doherty, Kate Hilder

This week's issue has a strong ESG focus. The introduction of mandatory, ISSB-aligned climate reporting is another step closer in Australia this week with the release of the AASB's draft standards. Separately, we cover the NSW Anti-Slavery Commissioner's recent address outlining why modern slavery risk is a material and foreseeable governance risk, and why it should be a key priority for ASX boards. On the financial services front, we cover ASIC's recent update on its consumer credit priorities and more….

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UK government seeks stakeholder views on Scope 3 emissions reporting
Majority Action has issued a call for ISS to strengthen its stance on Scope 3 emissions
Transition planning: MAS consults on draft guidance for financial institutions
CDP to align with ISSB climate disclosure standard in 2024
QLD to legislate renewable energy targets for electricity generation
Expanded water trigger: New Greens Bill seeks to close gas development loophole
131 companies have urged leaders to set timebound targets to phase out unabated fossil fuels ahead of COP 28
In Brief | Climate Action 100+ has released the latest round of company assessments against its recently updated Net Zero Company Benchmark. A key takeaway is that 'most focus companies are not moving fast enough to align with the goals of the Paris Agreement and reduce investors’ risk' and in particular, are lagging on the actions needed – eg setting short-term GHG reduction targets, capital expenditure (CapEx) allocation, climate policy engagement, just transition and GHG emissions reductions - to demonstrate they have credible transition plans in place to meet their long-term targets
In Brief | New research reveals that 85% of ASX 100 companies have disclosed some form of ESG measure in their incentive plans for FY22 with 'social' measures (eg employee health and safety) the most prevalent form of measure used

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ASX avoids second strike

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Top Story | Another step closer towards implementing mandatory climate disclosure in Australia
New report finds US companies have stepped up their cyber risk disclosure ahead of the commencement of new SEC rules
In Brief | ASIC has released its first integrated financial reporting and audit surveillance report for the 12 months to 30 June 2023 (REP 774). The report 'outlines findings related to insufficient disclosure of material business risks in the operating and financial review, impairment of assets and revenue recognition and other financial report disclosures' and calls on preparers and auditors 'to focus on accounting for non-financial assets, asset values, revenue recognition and disclosure of material business risks'

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CHESS replacement project: ASIC Chair updates Committee

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Top Story | Ministerial muscle - Australian government to strong arm payment systems regulation
ASIC's priorities in the consumer credit sector
Credit risk provisioning practices for locally incorporated ADIs: APRA updates to industry on its expectations
Bank closures: APRA data reveals there has been a 37% decrease in the number of bank branches since June 2017
In Brief | ASIC has made a new instrument - ASIC Corporations and Credit (Amendment) Instrument 2023/589 - which (among other things) modifies the reportable situations regime so that licensees do not have to submit notifications about certain breaches of the misleading and deceptive conduct provisions, and the false and misleading representations provision

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A foreseeable business risk: NSW Anti-Slavery Commissioner outlines why modern slavery should be a top priority for ASX-listed company boards
New parliamentary inquiry launched into the capability of law enforcement to respond to cybercrime