Governance News 8 February 2023

50 minute read + (PDF download) 08.02.2023 Mark Standen, Siobhan Doherty, Kate Hilder

This week's issue has a strong ESG focus. Among other developments, we cover the release of a new legal opinion, building on the 'Hutley opinions', on the implications of the introduction of ISSB-aligned sustainability standards in Australia on director liability. On the financial services front we cover the release of APRA's latest policy and supervisory priorities for the year ahead and more…

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CEDA has called for action to address the increasing gender segregation in 'critical industries'
New Global Inclusion and Diversity Alliance to launch in February
In Brief | UK Financial regulator has launched a research project to identify the drivers behind the gender imbalance among UK qualified, senior actuaries as well as surface cases where good practice has supported women's progression to senior roles

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US Insurers seek to block shareholder climate proposals
Chevron seeks to block As You Sow ocean plastic proposal
Amazon attempts to block shareholder Scope 3 emissions proposal
Follow This calls on Shell shareholders to back its shareholder Scope 3 proposal
Nelson Peltz releases open letter calling on Disney shareholders to back his election to the Disney board
In Brief | Targeting big Tech: Members of the Investor Alliance for Human Rights have announced they have filed 15 proposals at Meta, Amazon and Alphabet on a range of human rights, digital rights and corporate governance issues. According to investors, 'taken together, the issues raised in the proposals speak to the power and influence these tech giants wield over society and highlight how a lack of adequate oversight structures to mitigate potential harms raises risks for all stakeholders'

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Tighter requirements: Net Zero Asset Owner Alliance's updated target setting protocol tightens the methodology members are expected to use to reach net-zero emissions across their investment portfolios
Science Based Target Network calls for assistance to carry out planned target validation pilot
AICD report suggests climate governance is not among the top priorities for NFP boards
In Brief | New report flags the growing role of ESG as a driver of M&A: The report estimates that around one in ten deals in diversified industrials 'now has an ESG component' (though the report makes clear that this number if difficult to quantify)

Meetings and Proxy advisers Navigation Show below Hide below

'Alternative' proxy firm launched: New proxy firm promises to vote shares and engage with companies in a 'strictly pro-fiduciary manner, instead of advancing progressive social and political agendas'

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Top Story | Does the introduction of ISSB-aligned standards in Australia increase director liability risk? Do Australian directors need a climate reporting 'safe harbour'?
UK regulator to develop a 'common framework' for 'developing and reporting climate transition plans' in 2023
California senators unveil new Climate Accountability Package

Markets and Exchanges Navigation Show below Hide below

ASX board changes announced

Regulators Navigation Show below Hide below

APRA releases policy and supervisory priorities for the year ahead

Financial Services Navigation Show below Hide below

The government has outlined a three point plan for tighter controls on the crypto sector
APRA outlines key priorities for PHIs and APRA's expectations of boards heading into 2023
Consultation on regulation of the BNPL sector: ABA seeks further clarification, calls for further consultation and engagement on the proposed options for reform
AFCA has provided an update on insolvent financial firm complaints and unpaid compensation
In Brief | The government has released the final report of the Quality of Advice Review. The report includes 22 recommendations for reform. The government has flagged its intention to consult on the recommendations and has not released a formal response
In Brief | Token mapping consultation launched: Treasury has launched a one month 'token mapping' consultation as a first step towards the planned development of an 'appropriate' regulatory framework for the crypto sector. The consultation is open until 3 March 2023
In Brief | UK consults plans bring crypto under mainstream regulation: The UK government is consulting on plans to bring a 'broad suite of cryptoasset activities' (including exchange, custody and lending activities) into the regulatory perimeter for traditional financial services. The due date for submissions to the consultation is 30 April 2023
In Brief | A digital pound? UK Treasury and the Bank of England are consulting on the potential introduction of a digital pound, or central bank digital currency. It's envisioned that if introduced, the digital pound would be issued by the Bank of England and would be interchangeable with cash. In terms of timing, a decision on whether to implement a digital pound is planned to be taken 'around the middle of the decade'. This means that the earliest it could be launched is post-2025

Restructuring and Insolvency Navigation Show below Hide below

(Potential) reform of personal insolvency system? AG convenes stakeholder roundtable, flags issue as a government priority

Other News Navigation Show below Hide below

Top Story | Further 'modernisation' of Treasury Laws: Status update on the TLA Bill
In Brief | Statutory Review of the Payment Times Reporting Act 2020 – A consultation paper has been released calling for feedback among other things, on potential measures to incentivise improved payment terms and practices including (potentially) mandating one or more maximum payment periods for the payment of small business invoices by reporting entities

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 8 February 2023

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