Governance News 29 June 2022

40 minute read (PDF download) 29.06.2022 Mark Standen, Siobhan Doherty, Kate Hilder

This week's issue has a strong ESG focus with a particular emphasis on global efforts to develop climate/sustainability reporting standards. Among other things, we cover the FRC's submission on the ISSB's draft global sustainability standards, and the European Council's 'provisional political agreement' on the corporate sustainability reporting directive (CSRD). On the financial services front, we cover the release of Life Insurance Code of Practice, the joint submission from financial services associations to the Quality of Advice Review, ASIC's CCIV guidance and more…

Diversity Navigation Show below Hide below

Top Story | Why does the gender wage gap increase with age? WGEA data provides insights into key drivers behind the persistent gender pay gap in Australia

Boards and Directors Navigation Show below Hide below

In Brief | The Department of Parliamentary Services has published a 'quick guide' to directors' duties under the Corporations Act and the consequences of breaching these duties

Shareholder Activism Navigation Show below Hide below

Following the majority vote on a shareholder proposal demanding increased transparency around political spending at Twitter, five US companies have separately agreed to the New York State Common Retirement Fund's demands
Shareholder anti-harassment/anti-discrimination proposal carried at Activision Blizzard, 'vote no' campaign has limited impact
Why Vanguard did not support the Climate Action 100+ flagged shareholder climate proposal at Valero
In Brief | No rubber stamp? BNP Paribas AM says it supported only 24% of 'Say on Climate' resolutions this proxy season (down from 71% last year). BNPP AM attributes the drop to its adoption of an 'analysis grid' for assessing 'say on climate' resolutions

Disclosure and Reporting Navigation Show below Hide below

SEC's proposed climate disclosure rules: CalSTRS and ICCR have called on SEC to go further, BlackRock has expressed concern that some aspects of the proposal go too far
EU reaches 'provisional political agreement' on new rules to combat greenwashing
The UK FRC has released its response to the ISSB draft standards
In Brief | KPMG's analysis of the extent to which listed companies have adopted ASX’s Corporate Governance Council’s fourth edition Corporate Governance Principles and Recommendations has found that reporting on DE&I by ASX listed entities has 'stalled', and that 25% of companies claim to have no material exposure to environmental or social risks
In Brief | The GRI has launched a new sector-specific sustainability reporting standard specifically for the Agriculture, Acquaculture and Fishing sectors. GRI 13 is the first global sustainability reporting standard for companies in these sectors

ESG Navigation Show below Hide below

Australian Conservation Foundation challenges Scarborough off-shore gas project
The European Council has agreed to progress legislative proposals to introduce tougher EU-level renewables and energy efficiency targets
SB 1173 update | Mandating divestment of fossil fuels: A Californian Bill that (if enacted) would require CalPERs and CalSTRs to divest their existing fossil fuel investments by the end of the decade has been blocked in Committee
In Brief | The WA government has announced a commitment to cut its own emissions by 80% below 2020 levels by 2030. The government said the new target sends a 'strong signal' that the state is open for investment in renewable energy generation
In Brief | The Australian government has committed $80 million over four years to an international effort– the Global Environment Facility – aimed at supporting developing countries, including Pacific nations to tackle urgent environmental issues and reduce the impacts of climate change
In Brief | The UK government intends to push ahead with its plans to introduce requirements for UK pension schemes to disclose how their investments align with the goals of the Paris Agreement. The government has said that the changes will 'will ensure that, from October this year more than 80% of UK members will be invested in pension schemes which are helping to limit the climate risk to their members retirement incomes'

Regulators Navigation Show below Hide below

A more representative RBA board? Treasurer flags that the planned RBA review is likely to include consideration of whether the RBA board is 'the right composition and the right size'

Financial Services Navigation Show below Hide below

Updated Life Insurance Code of Practice released
First thematic review of implementation of five 'public facing' commitments in the 2020 General Insurance Code released
19 'quick wins' (plus 20 recommendations for longer-term change): Financial Advice Associations representing 90% of advisers release their joint submission to the Quality of Advice Review
Treasury has launched a post implementation review of the extension of the ban on conflicted remuneration to ‘stamping fees’ paid by LICs and LITs
Government confirms cryptocurrencies will continue not to be taxed as a foreign currency
ASIC has released CCIV guidance ahead of the commencement of the CCIV regime on 1 July 2022
ASIC calls for better disclosure of business risks following its reviews of 31 December 2021 financial reports
June Quarterly statement from the Council of Financial Regulators flags that the Council has endorsed a plan for the wider role out of the cyber resilience testing exercise (CORIE) after a successful pilot
In Brief | ASIC wins appeal case against payday lender: The Full Federal Court held that a 'financial supply fee' charged by Cigno Pty Ltd is a charge 'made for providing credit', reversing the court's previous decision
In Brief | APRA has published an updated FAQ for banks about the prudential treatment of residential mortgage loans made under the government’s expanded Home Guarantee Scheme. APRA confirms that the loans will be subject to the same regulatory treatment as previous tranches

Risk Management Navigation Show below Hide below

Top Story | Significant amendments to the Model WHS Act: What you need to know
In Brief | The WA Parliamentary Inquiry into the sexual harassment of women in the fly in fly out mining industry has released its final report entitled Enough is Enough. The report found that women working in mining live with the reality of sexual harassment and assault with 74% of women workers in the industry reporting being sexually harassed in the last five years. The report makes 24 recommendations for urgent change. Minister for Resources and Northern Australia Madeleine King has urged resources sector to act to address the issue and pledged the government's support. Ms King also reiterated the Federal government's commitment to implementing the recommendations of the Respect@Work Report

Contact

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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