Governance News 5 April 2023

60 minute read + (PDF download) 05.04.2023 Mark Standen, Siobhan Doherty, Kate Hilder

This week's issue has a strong ESG focus. We cover the progress of various shareholder proposals on a range of ESG issues including the majority vote on a shareholder labour rights resolution at Starbucks. We also cover the release of Climate Action 100+'s updated benchmark and the first proposals 'flagged' by the group for 2023. On the financial services front we cover ASIC's first court action over (alleged) unfair contract terms in an insurance contract, the progress of the FAR and CSLR Bills, the introduction of Senator Bragg's crypto-regulation Bill and more…

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Transparency on employer gender pay gaps: The Workplace Gender Equality Amendment (Closing the Gender Pay Gap) Bill 2023 has passed both Houses and now awaits Assent
Fair Work Legislation Amendment (Protecting Worker Entitlements) Bill 2023 aims (among other things) to strengthen access to unpaid parental leave
In Brief | Japanese government targets 85% of male workers to take paternity leave by FY 2030 (in 2021 only 13.97% of men did so, vs 85.1% of women)

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Majority vote on labour rights shareholder proposal at Starbucks
Vote no campaign: Majority Action follows through on policy to recommend against the election of directors on climate grounds
Child labour concerns: SOC calls on Hyundai to appoint a 'human rights expert' to its board, subject factories to ongoing third party monitoring
Phillips 66 board recommends 'against' supporting As You Sow's virgin plastic reduction resolution arguing it has already been 'substantially implemented'
CarMax to expand carbon offsets disclosure in response to shareholder proposal
Green Century claims credit for Citigroup's strengthened deforestation policies

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Stepping up expectations on climate action: Climate Action 100+ releases latest iteration of Net Zero Company benchmark
Climate Action 100+ 'flags' climate-related proposals at four companies ahead of upcoming meetings
IIGCC launches new initiative to push companies to accelerate action on transition planning
The Net-Zero Asset Owner Alliance has released an oil and gas position paper setting out new expectations for investors; Reclaim Finance has labelled the changes 'feeble' and called on investors to go further
Investor removes AGL from its divestment 'watchlist'

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Top Story | Update on Safeguard Mechanism reforms
Munich Re exits Net Zero Insurance Alliance
In Brief | Tulipshare has filed a labour rights proposal at Nike calling on the board to 'oversee and issue a report to shareholders assessing the effectiveness of its existing supply chain management infrastructure in ensuring alignment with Nike’s equity goals and human rights commitments'
In Brief | Anti-woke backlash in the US continues: Texas Comptroller has added HSBC to the list of companies state entities are banned from doing business with following the release of updates to HSBC's energy policy which he considers 'boycott[s] the oil and gas industry'

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Company fined $123,000 over reporting failures, ASIC says it stands ready to take action where companies are 'negligent in their reporting responsibilities'
Senate inquiry into greenwashing announced
TNFD consults for final time on draft framework ahead of the planned release of the final version in September 2023
In Brief | Greenwashing: UK regulator pushes back planned anti-greenwashing disclosure/labelling rules for investors due to the volume of feedback received in response to the consultation. The FCA has said it plans to publish a Policy Statement in Q3, and that the 'proposed effective dates' will be 'adjusted accordingly
In Brief | Environmental groups (led by Sierra Club) have submitted additional comments to the SEC on the regulator's proposed climate disclosure rule. The groups consider that new research identifying that investors increasingly rely on Scope 3 emissions disclosures to evaluate business risk strengthens the case for the introduction of the proposed rule

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CHESS replacement: ASX has confirmed that ASIC has launched an investigation into its oversight and disclosures in connection with the CHESS replacement project

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Top Story | UCT webinar: How will changes to unfair contract terms impact you?
ASIC launches first court action over (alleged) unfair contract terms in an insurance contract
Insurer in breach of APRA Prudential and reporting standards, APRA has approved a remediation plan and launched a wider compliance review
Top Story | FAR status update: FAR Bills delayed (again)
CSLR status update: Senate proposed to consider legislation to establish and fund the CSLR in May
Treasurer reiterates that Australian banks are 'well-capitalised, well regulated and well-placed' to deal with current pressures
White House calls for reinstatement of tougher rules for mid-sized banks
Crypto regulation: Senator Bragg introduces Digital Assets (Market Regulation) Bill 2023
BNPL reform: AFIA supports independent review recommendations to strengthen the BNPL Code of Conduct
Regional bank closures: APRA launches ADI Points of Presence Review
AFCA consults on proposed changes to the rules governing how it handles complaints
Treasury consultation: Implementation of changes to the concessional tax rate for superannuation balances over $3 million
Draft Superannuation Performance Test Regulations 2023 released for consultation
ASIC and IOSCO report on combatting retail market misconduct
In Brief | The Review of the Reserve Bank of Australia provided its report to the Treasurer on 31 March 2023. The Treasurer has indicated he plans to release the report before the May Budget

Corporate misconduct and liability Navigation Show below Hide below

Directors' Liability Reform Bill 2022 (WA) awaits Assent

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Consultation opened on the design of new a federal administrative review body which is proposed to replace the AAT
Independent review of the Modernisation of Business Registers program added to Treasury website

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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Governance News 5 April 2023

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