Governance News 26 May 2021

60 minute + (PDF download) 26.05.2021 Mark Standen, Siobhan Doherty, Kate Hilder

This week's issue reports on various ESG developments including coverage of research identifying the marked change in the voting behaviour of institutional investors as the main driver behind the record levels of support for shareholder ESG resolutions so far this year. This issue also covers key financial services, risk and regulatory developments and more…

Diversity Navigation Show below Hide below

Signs that boards are taking action: ISS analysis shows a spike in the number of Black director appointments on S&P 500 boards
In Brief | How to do better at gathering diversity data and meaningfully reporting on diversity for maximum business benefit: The Diversity Council of Australia has released a practical guide on how organisations can improve their approach
In Brief | Beyond gender: The Canadian Securities Administrators (CSA) have announced their intention to conduct further research and consultation on the need/possible introduction of broader diversity disclosure requirements (ie beyond minimum gender diversity requirements) for boards and executive officer positions. The work will take into account the extent to which corporate governance practices and the disclosure needs of investors have 'evolved' since the introduction of the 'women on boards' disclosure requirements

Shareholder Activism Navigation Show below Hide below

Activist Engine No 1 reiterates its case for strategic change at Exxon ahead of the AGM, BlackRock has reportedly voted for three of the four alternate board candidates

Institutional Shareholders and Stewardship Navigation Show below Hide below

Morningstar's analysis suggests that record levels of support for shareholder ESG resolutions points to a sea change in the voting behaviour of large institutional investors
New framework released to help guide investor action on climate risk and accelerate the net zero transition
Norges Bank has excluded three companies on ethical grounds

Other Shareholder News Navigation Show below Hide below

Ensuring the voices of workers are heard in the boardroom: New report considers how FTSE 350 firms have responded to the introduction of workforce engagement requirements in the 2018 Corporate Governance Code

Meetings and Proxy Advisers Navigation Show below Hide below

Early insights into 2021 proxy voting trends: Heading for a 'record year' for shareholder ESG proposals?
In Brief | 'Manifestly unfair and nonsensical': Ownership Matters' submission to Treasury's consultation on potential options for the reform of the proxy system is highly critical of the 'options' put forward, and raises questions about the need for change

Disclosure and Reporting Navigation Show below Hide below

'Embroiled in a greenwashing scandal': WEF cautions that the EU's Sustainable Finance Taxonomy may actually enable greenwashing
Consultation on product level ESG disclosure standards: The CFA institute is consulting on proposed global and voluntary ESG disclosure standards for investment products
Paving the way for mandating climate disclosure? US Presidential Order confirms the Administration's climate policy and flags improved disclosure, management and mitigation of climate-related risk as a key priority

Financial Services Navigation Show below Hide below

Top Story | Should financial planners be individually registered? The Financial Planning Association suggests that the government take the opportunity to strengthen it's proposed approach to implementing Hayne Recommendation 2.10.
Responsible lending: Consumer group again urges the government to rethink the roll back of responsible lending protections
ASIC is consulting on proposed changes to the ePayments Code
Treasury is consulting on the design of the cyclone reinsurance pool
A rescue plan for private health insurance? Grattan report sets out a four point plan to 'stop the death spiral'
The UK FCA is consulting on a proposed new 'consumer duty' to strengthen protections for consumers in financial markets
Deutsche Bank announces tougher sustainability goals
Reducing red tape for superannuation funds – Consultation on proposed ECPI changes
APRA has published additional FAQs on meeting reporting standards under Phase 1 of the Superannuation Data Transformation
In Brief | APRA data shows total superannuation assets increased 3.1% for the quarter and 13.9% over the 12 months to March 2021 to hit a record high of $3.1 trillion
In Brief | In a recent speech, recapping key Federal Budget measures, Senator Jane Hume flagged that progressing the Retirement Income Covenant is 'the next cab off the rank' for the government, after the Your Future You Super Reforms