Governance News 7 December 2022

45 minute read + (PDF download) 07.12.2022 Mark Standen, Siobhan Doherty, Kate Hilder

In this week's issue we cover various significant ESG developments including ASIC's second ever greenwashing enforcement action and the full Federal Court's decision in Santos NA Barossa Pty Ltd v Tipakalippa [2022] FCAFC 193 upholding a landmark ruling invalidating a gas company's environmental approval to drill for gas in Tiwi Sea Country. On the financial services front, we cover the passage of the Financial Services Reform Bill 2022 (which implements SACC and other consumer credit reforms) and more…

Boards and Directors Navigation Show below Hide below

Director ID: ABRS to take a 'pragmatic compliance approach' post 30 November 2022 deadline

Diversity Navigation Show below Hide below

Stalled: Report finds there has been little progress towards increased board gender diversity on Russell 3000 boards
Gender diversity at the cost of cultural diversity? New report shines a light on the lack of cultural/ethnic diversity on Australian boards
Monash University led report projects it will take more than 200 years to reach gender income equity in Australia
In Brief | The Asia Securities Industry and Financial Markets Association has released guidance for companies on investor expectations around gender diversity which includes recommendations around increasing gender diversity at board level and across the broader workforce as well as recommendations around positioning gender diversity within a broader DEI strategy. A key message to companies is that 'adopting and disclosing on policies, programs, metrics and targets to promote DEI across the company is critical to achieving a more diverse and inclusive corporate culture'

Shareholder Activism Navigation Show below Hide below

92% of Sysco shareholders back shareholder plastic packaging proposal after board predeclared its intention to 'substantially implement' it
Gaining (some) traction the third time around: A Market Forces coordinated 'wind up' resolution at New Hope secured increased support this year

Meetings and Proxy Advisers Navigation Show below Hide below

Top Story | Addressing the barrage of ESG questions at AGMs
Glass Lewis releases updated policy guidelines for 2023

Disclosure and Reporting Navigation Show below Hide below

Top Story | ASIC targets greenwashing with a social dimension
Greenwashing enforcement action: Vanguard fined by ASIC
ASIC focus areas for 31 December 2022 financial reports
In Brief | TCFD alignment no guarantee of decision-useful disclosures: A report from Manifest Climate highlights that though global uptake of the TCFD framework by organisations globally is high, the information provided is only 'decision useful' in 49% of cases

Regulators Navigation Show below Hide below

ASIC's commitment to enforcement is undiminished says Chair

ESG Navigation Show below Hide below

The Full Federal Court has upheld a landmark ruling setting aside the regulator's environmental approval of a major gas project in Tiwi Islander sea country that is a necessary precondition for the project to proceed
All packaging in the EU market could be required to be fully recyclable by 2030 under proposed new rules
Investors call on the world's largest chemical producers to phase out 'forever chemicals'
In Brief | The Climate Change Authority's first annual progress advice report finds Australia needs to significantly step up its action on cutting emissions if it is to meet the government's 2030 and 2050 targets. At the current rate, the report projects that Australia will underperform on its 2030 target by 73 Mt CO2-e (in carbon budget terms). If the targets are to be met, Australia will need to decarbonise at an average annual rate of (at least) 17 Mt CO2-e per year on average – or more than 40% faster than it has since 2009
In Brief | RIAA report highlights that the responsible investment markets in Australia and New Zealand reached 'new record highs' at the end of 2021. According to the report: 43% of the total market amounting to AUS$1.54 trillion in Australia is invested responsibly and 49% totalling NZD$179 billion is invested responsibly in New Zealand
In Brief | An IEA report forecasting the deployment of renewable energy technologies in electricity, transport and heat to 2027 projects that, triggered by the global energy crisis, renewables are set to surpass coal as the largest source of global electricity generation by 'early 2025'
In Brief | The US Federal Reserve Board is consulting on proposed principles for the 'safe and sound management of exposures to climate-related financial risks' for large banks. According to the Board's press release, the proposed principles are 'substantially similar' to proposals issued by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, and the Board has signalled it will work with those agencies 'to promote consistency in the supervision of large banks through final interagency guidance'

Financial Services Navigation Show below Hide below

ASIC launches first DDO case
DDO enforcement | Number of interim stop orders issued by ASIC increases to 21
Consumer credit reform | Financial Sector Reform Bill 2022 has passed both Houses (without the FAR or CSLR components)
APRA has finalised Prudential Standard CPS 190 Recovery and Exit Planning
In Brief | Assistant Treasurer Stephen Jones has formally designated the non-bank lending sector as subject to the CDR. Treasury and the Data Standards Body have now called for feedback on the development of rules and data standards to implement the CDR in the non bank lending sector. The due date for submissions is 31 January 2023