Governance News 6 December 2023

60 minute read (PDF download) 06.12.2023 Mark Standen, Siobhan Doherty, Kate Hilder

This week's issue again has a strong ESG focus. New legislation proposing to establish Australia's first Modern Slavery Commissioner was introduced, legislation to establish a framework for a voluntary national biodiversity market in Australia has passed the Senate (with Greens amendments) and NSW has become the latest Australian State/Territory to legislate climate targets. On the financial services front, the government has introduced legislation to enact long-awaited FFSP licensing reform. On the risk front, the government is pushing forward with the planned introduction of mandatory industry-specific anti-scam Codes with the launch of a new consultation on a proposed framework for the new regime and more….

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Top Story | Modern Slavery: Update on recent moves to strengthen Australia's modern slavery regime
Top Story | Harnessing technology to manage ESG risks and unlock opportunities
NSW has become the latest Australian State/Territory to legislate emissions reduction targets: The Bill to legislate 2030 and 2050 emissions reduction targets, create a new monitoring body has passed both Houses and now awaits Assent
Legislating the right to a healthy environment: HRLC recommends three changes to strengthen the ACT Bill
In Brief | The Nature Repair Market Bill 2023 (Cth) and Nature Repair Market (Consequential Amendments) Bill 2023 (Cth) which together will establish a framework for a voluntary national biodiversity market have passed the Senate with 11 Greens amendments
Worker welfare | SOC nominates three directors, escalates push for labour rights at Starbucks
Failing to follow through on commitments to tackle racial inequality? Civil rights and racial equity organisations urge companies to meaningfully deliver on their commitments to conduct racial equity audits
Human-capital related shareholder proposals 'among the best performing' shareholder ESG proposals of 2023
In Brief | Sovereign Green Bonds: Ahead of the first issue of green bonds (which is expected in mid-2024), the Australian government has released the Green Bond Framework which sets out the basis for identifying, selecting, managing, and reporting on expenditures financed with green bonds
In Brief | Promoting integrity in voluntary carbon markets: US regulator the CFTC is consulting on draft guidance for the listing of voluntary carbon credit derivative contracts
In Brief | The government has established a new Nature Finance Council to 'increase private sector financial flows to benefit Nature'. The Council’s first work plan is planned for release in 'early 2024'
In Brief | Climate Change - Science Snapshot for directors released: The AICD, together with the CSIRO, have released a new resource that aims to provide directors with a high level picture of the latest information on the potential impacts of climate change on Australia and its industries

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2023 AGM season | Recent string of 'strikes' continues

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Greenwashing | ASIC again takes action over (alleged) failures to accurately apply investment screens
Basel Committee launches consultation on a Pillar 3 disclosure framework for climate-related financial risks
Sector-specific transition taxonomy: MAS announces the release of the Singapore-Asia Taxonomy for Sustainable Finance, separately announces new measures to accelerate the phase out of coal fired power plants
IFRS announces three further commitments to support implementation and adoption of 'robust' sustainability-related financial disclosures
In Brief | Greenwashing: IOSCO has released a report providing an overview of initiatives undertaken in various jurisdictions to address greenwashing and highlighting current regulatory best practices (as well as the challenges for regulators in tackling the issue)

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Top Story | Government delivers FFSP to Parliament
New Bills propose to reduce the frequency of FRAA reviews, enact updates to the payments system regulatory framework and enact FFSP licensing
Government pushes ahead with RBA reforms
APRA is consulting on draft 'minor updates' to the capital framework for ADIs
Financial Advisers: ASIC releases new guidance on registration requirements
ASIC and AFCA sign memorandum of understanding
Enhancing transparency in super, improving retirement outcomes: ASIC's continuing focus
Inquiry into Bank Closures: Key takeaways from ASIC's opening statement
In Brief | ASIC's successful court action over failure to deliver on pricing promises: The Federal Court has handed down a $10 million fine against a general insurer over misleading statements included in certain product disclosure statements (PDS) about how certain policy discounts would be calculated/applied. Announcing this, ASIC reiterated that ensuring insurers deliver on pricing promises is an enforcement priority this year, and that it 'will continue to monitor marketing and pricing practices in the industry, and use the full range of regulatory tools available to protect consumers from general insurers failing to honour promised discounts.’
In Brief | APRA has released an information paper explaining its rationale for its decision to maintain existing macroprudential policy settings unchanged. To be clear, this means that the mortgage serviceability buffer will remain at 3%, and the countercyclical capital buffer will stay at 1% per of risk-weighted assets.
In Brief | First 'comprehensive snapshot' of consumer payment behaviour post-COVID released: The RBA 2022 Consumer Payments Survey confirms cards or mobile devices are increasingly being used, even for small purchases – the share of in-person transitions made with cash halved from 32% to just 16% over the three years to 2022 is just 16% (down 50% in three years)