Governance News 31 January 2024

40 minute read (PDF download) 31.01.2024 Mark Standen, Siobhan Doherty, Kate Hilder

This week we cover the release of APRA's supervisory and policy priorities for the first half of 2024. Among the regulator's top cross-industry priorities are: Governance, Culture, Remuneration and Accountability (GCRA), climate risk, cyber resilience (with a focus on CPS 234 compliance), and operational resilience (with a focus on CPS 230 implementation). We also cover a number of other significant financial services and ESG-related developments and more…

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UK FRC publishes updated guidance for boards on the recently released, 2024 Corporate governance Code

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Semler Brossy Report: High approval and low failure for 'Say on Pay' in 2023

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Climate-safe retirement | Intuit Inc shareholders vote down shareholder climate proposal calling on the company to disclose how it is protecting retirement plan beneficiaries' investments from climate risk over the long term
Plastic pollution | Investors claim credit for Keurig Dr Pepper's tightening of its chemicals management policy
Walgreen shareholders (reportedly) vote down 'living wage' proposal
Plastic pollution | As You Sow has withdrawn a shareholder EPR proposal at Hormel
ICCR says Exxon's move to sue shareholders to block a Scope 3 climate proposal could have undesirable (and costly) consequences for companies as well as shareholders
Investors reject shareholder fossil fuel resolutions filed at two Australian big banks
In Brief | PRI signatory and BP shareholder Bluebell Capital Partners has reportedly written to BP, calling on the company to wind back its clean energy strategy on financial grounds

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Blackrock's five engagement priorities unchanged from last year, 'financial resilience' highlighted as an area of particular focus
Ontario Teachers' Pension Plan sets 'climate literacy' as a baseline expectation for audit committees

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IMF paper suggests strategies to 'unlock climate finance' in the Asia Pacific including the suggested phase out of fossil fuel subsidies
Greens Senator calls for federal fossil-fuel subsidies to be redirected to funding community transition projects
Woodside announces board changes, emphasises decarbonisation
In Brief | Anti-ESG backlash continues in the US: Texas Attorney General announces Barclays has been banned from participating in Texas’s bond market over the banks' failure to respond (within time) to the Attorney General's request for 'more information' about the banks' ESG commitments
In Brief | Reportedly the NT government has (for the first time) launched legal action against the owners of a station over (alleged) unapproved land clearing
In Brief | Huge (and mounting) cost of extreme weather events in Australia: The Insurance Council of Australia puts the cost of claims from ex-Tropical Cyclone Jasper and the Christmas and New Year storms at $743 million+ with more claims relating to these events expected

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GRI launches updated biodiversity reporting standard
Enhancing trust in sustainability disclosures and reducing greenwashing: IESBA consults on proposed global standards for sustainability assurance
Mandatory Climate Disclosure | AICD expresses support for the proposed 'interim modified liability framework'
In Brief | Nature risk reporting frameworks: New report co-authored by the United Nations Environment Programme World Conservation Monitoring Centre and the United Nations Environment Programme Finance Initiative offers a comparison of seven leading nature-related assessment and disclosure frameworks (including the Recommendations of the Taskforce on Nature-related Financial Disclosures released in September 2023)

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Top Story | GRCA, operational resilience, climate and cyber included among APRA's top supervision and policy priorities for the next six months
Housekeeping: Treasury is consulting on proposed miscellaneous/technical amendments to Treasury Portfolio Laws
Banking Code of Conduct | AFCA's submission to ASIC CP373 raises concerns that the ABA's proposed changes to the
Banking Code water down existing Code commitments
Risk governance an area of continued focus for APRA: APRA imposes increased its capital requirements on insurer, mandates risk remediation program in response to governance concerns
House inquiry into insurers' responses to 2022 major flood claims announces public hearings will commence from the end of January 2024