Governance News 28 February 2024

45 minute read (PDF download) 28.02.2024 Mark Standen, Siobhan Doherty, Kate Hilder

This week's issue has a strong ESG focus. Nature and AI (including the human impacts of AI) are firming up as areas not only of increasing concern and focus for investors – shareholders continue to push companies to act on both – but as focus areas for regulators and standard setters as well. We cover a range of developments. On the financial services front, the Australian government has announced consumers will be able to lodge claims for compensation under the Compensation Scheme of Last Resort (CSLR) from 2 April 2024, Liberal Senator Andrew Bragg has called for a new Financial System Inquiry to reassess the 'twin peaks' model and more…

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Pay transparency | WGEA publishes gender pay gap information at individual company level for the first time
Report finds women hold less than 30% of US public company board seats
Tracking progress towards increased board gender diversity: New report offers a global perspective

Remuneration Navigation Show below Hide below

Glass Lewis confirms 2023 was a record year for 'strikes' at ASX 300 AGMs

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Nature/biodiversity loss | Chemical company Chemours and paint company Sherwin-Williams successfully block shareholder nature proposals
Plastic pollution | Disney to increase disclosure of plastic usage from next year and set additional plastic reduction goals in 2026 following engagement with Green Century
AI board expertise in focus | Blackwells Capital pushes for board change at Disney
Activist retracts shareholder climate lobbying proposal ahead of SEC decision
Pfizer's bid to block shareholder human rights proposal rejected by the SEC
Bank of America gets green light to block a conservative shareholder proposal from proceeding to a vote on procedural grounds

Institutional Shareholders and Stewardship Navigation Show below Hide below

UK FRC kicks off review of the Stewardship Code, announces new Code signatories

ESG Navigation Show below Hide below

Financial Stability Board's 2024 workplan: A focus on nature-related risks and AI
'The direction of travel is clear' when it comes to expectations around managing nature-related risk: UK pensions regulator urges trustees to familiarise themselves with the TNFD, TPT and TSF
VBDO-led coalition calls for due diligence in EV nickel supply chains
Protecting marine biodiversity | Offshore Petroleum and Greenhouse Gas Storage Amendment (Stop PEP11 Forever and Protect Our Coastal Waters) Bill 2024 (Cth) introduced
Plugging a legislative gap? Submissions on the Climate Change Amendment (Duty of Care and Intergenerational Climate Equity) Bill 2023 (Cth) appear generally supportive of the Bill's objective
In Brief | European Parliament adopts new nature restoration law which includes a target for EU countries to implement measures to restore 20% of EU's land and sea areas by 2030 and all ecosystems in need of restoration by 2050
In Brief | The Law Society of NSW has released new guidance for solicitors on climate change, emphasising that climate-related risks will affect all areas of legal practice. The guidance is based on similar guidance issued by the Law Society of England and Wales and applies the principles set out in the Law Council's Climate Change Policy
In Brief | The ASX Corporate Governance Council is consulting on a proposed fifth edition of the Corporate Governance Council Principles and Recommendations. Among other proposed changes is change to Recommendation 7.4 which (if adopted) would mean that entities would be expected to disclose their material risks (without specifying disclosure of specific risks/specific categories of risk). In the current version, Recommendation 7.4 focuses on disclosure of material environmental and social risks

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In Brief | Reuters reports that the SEC has dropped Scope 3 emission disclosure requirements from the (yet to be released) climate disclosure rule
Greenwashing | UK regulator clears Ford SUV ad (despite it featuring a 'zero-emissions driving' claim)
Global report finds that sustainability reporting is now the norm for almost all companies
ISSB seeks 150 members for new sustainability reference group

Regulators Navigation Show below Hide below

'It is obvious the twin peaks model has had its day': Liberal Senator Andrew Bragg calls for a Financial Systems Inquiry
In Brief | The UK Financial Conduct Authority is consulting on a proposed new approach to publicising its enforcement investigations as well as broader changes to its 'Enforcement Guide'. The regulator proposes to increase 'transparency' around when it commences investigations/the progress of investigation, to speed up the time taken to complete investigations as well as increase 'collaboration' with industry

Financial Services Navigation Show below Hide below

Top Story | CPS 230: Your roadmap to compliance
Hayne implementation | CLSR to be in operation from 2 April 2024, inaugural Chair announced
ASIC calls on advisers, trustees and licensees to step up their oversight of Choice super performance: Key takeaways from ASIC report 779

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In Brief | The Bill to enact the government's revised Stage 3 tax cuts - Treasury Laws Amendment (Cost of Living Tax Cuts) Bill 2024 (Cth) – passed both Houses without amendment on 27 February 2024. Treasury Laws Amendment (Cost of Living—Medicare Levy) Bill 2024 (Cth) also passed both Houses without amendment

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Mark Standen

Consultant, Sydney
- +61 2 9921 4902
- +61 412 104 902
Siobhan Doherty

Partner, Sydney
- +61 2 9921 4339
- +61 413 187 544

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