governance in brief

Governance in Brief – November 24, 2022

Costco to set new emissions targets following activist demands Activist investment firm Green Century Capital Management claims that Costco Wholesale Corp has pledged to set new Scope 3 climate reduction targets in 2023. At Costco’s January 2022 AGM, 70% of votes supported a proposal from Green Century for the company to include emissions from producers and distributors in its net-zero greenhouse gas emissions targets.

Physical Climate Risk: Preparing Your Portfolio for a Changing Climate

The physical climate risks affecting assets are likely to increase in the coming years, as the impacts of climate change are felt more frequently and with more intensity. In this guide, learn how companies and investors can assess their exposure to physical climate risks.

Webinar Replay: Sustainable Finance and the Inflation Reduction Act

The IRA was signed into law in August 2022 and directs nearly USD $370 billion towards investment in sectors at the heart of the economy’s transition to a Net Zero world.

governance in brief

Governance in Brief – November 17, 2022

Renault to potentially spin off EV line and partner with Geely French carmaker Renault Group has announced plans to split its activities into five separate businesses: “Ampere” (electrical vehicles), “Power” (combustion- and hybrid-engine assets), “Alpine” (sports cars), “Mobilize” (financial services), and “The Future is Neutral” (recycling activities). The company is considering listing Ampere on Euronext Paris in 2023 and has said that it will welcome external investors while maintaining a “strong majority.”

On-Demand Webinar: Cyberattacks, Corporate Exposure, and Material ESG Risk

Data privacy and cybersecurity-related issues have become major drivers of business risk in recent years. Cyber risk is “the most immediate and financially material sustainability risk that organizations face today,” according to the World Economic Forum.

Water Risks, the Great Plains, and the Packaged Food Industry: ESG Thematic Spotlight, November 2022

In collaboration with The Water Council, this report explores the notion of contextual water risks impacting agribusiness operations and sourcing in the Great Plains region of the United States.

governance in brief

Governance in Brief – November 10, 2022

Petrobras to pay massive third quarter dividend Petrobras has approved the payment of around BRL 43.68 billion (USD 8.4 billion) in Q3 dividends. Of the total dividend, around BRL 20 billion (USD 3.9 billion) will go to the Brazilian federal government, Petrobras’ controlling shareholder.

EU Flag waving against the background of a blue sky

The EU Action Plan on Financing Sustainable Growth: Twelve Essential Questions Answered for Investors

Learn what the EU Action Plan is, its objectives, and the importance of taking immediate action to comply with its various regulations including the EU Taxonomy Regulation, Sustainable Finance Disclosure Regulation, and the EU Benchmarks Regulation.

governance in brief

Governance in Brief – November 3, 2022

SEC adopts new rule on executive compensation clawbacks The U.S. SEC has adopted new rules requiring publicly traded companies to recover incentive-based executive compensation if that pay was awarded based on a misstated financial performance measure. The SEC had originally proposed a clawback rule in 2015, but it remained dormant until 2021.

governance in brief

Governance in Brief – October 27, 2022

U.S. financial regulator launches climate-related advisory group The U.S. Financial Stability Oversight Council has now launched the new dedicated “Climate-related Financial Risk Advisory Committee” (“CFRAC”) that it had previously announced in its 2021 report on climate risks. The CFRAC’s exclusively advisory mandate is to identify information gaps and data inconsistencies, make recommendations on addressing them, gather and analyze information on climate-related risks to the financial system, and provide advice on identifying, assessing, and mitigating climate-related risks to the financial system.

governance in brief

Governance in Brief – October 20, 2022

Activist pressures Australian banks on climate action Activist group Market Forces has submitted shareholder proposals to the upcoming AGMs of National Australia Bank (“NAB”), ANZ Bank, and Westpac, calling on the banks to stop fossil fuel financing.

governance in brief

Governance in Brief – October 13, 2022

Musk revives Twitter buyout, sparking financing concerns Elon Musk announced on October 4 that he will move forward with his original bid of USD 54.20 per share, while seemingly maintaining his right to pursue damages against Twitter for having allegedly misrepresented its usage statistics. The trial on the matter has been put on hold, but may be rescheduled for November should the deal not be closed by October 28.

governance in brief

Governance in Brief – October 6, 2022

Credit Suisse share price plunges amid concerns of collapse Credit Suisse saw its share price drop 11.5% to an all-time low on October 3 amid concerns surrounding the bank’s financial stability and ability to restructure its business. Spreads on the bank’s credit default swaps, which provide investors with protection against financial risks, rose sharply last week following media reports that the bank was seeking to raise capital.

governance in brief

Governance in Brief – September 29, 2022

P&G Chair targeted over ESG risks Friends of the Earth, with the support of the Natural Resources Defense Council and the Rainforest Action Network, has filed a “notice of exempt-solicitation” urging Procter & Gamble investors to oppose both the reelection of CEO Jon Moeller as board Chair and the reelection of two members of the “Governance and Public Responsibility Committee.”

governance in brief

Governance in Brief – September 22, 2022

DOJ unveils crimefighting policies for corporate misconduct The U.S. Department of Justice has announced a new “carrots and sticks” approach to fighting corporate crime that encourages companies to report misconduct while making it more difficult for repeat offenders to enter settlements and deferred prosecutions.

Physical Climate Risks: 6 Things Portfolio Managers Need to Know

The negative physical impacts of climate change are being felt by communities and corporations globally and are likely to get worse in the coming years. The knock-on costs of more frequent “once-in-a-century” climate events on economies are likely to rise. To prepare for this looming threat, investors must forecast the asset-level effects of climate change on companies in a granular and sophisticated way. Here are six things portfolio managers should know to manage and mitigate the physical risks of climate change to their portfolios and meet growing list of climate-focused reporting requirements.

governance in brief

Governance in Brief – September 15, 2022

Philip Morris to lower acceptance threshold for Swedish Match bid Faced with shareholder opposition, Philip Morris could reportedly lower the acceptance threshold for its USD 16 billion takeover of Swedish Match.

governance in brief

Governance in Brief – September 8, 2022

BHP shareholders seek coherent climate policy Shareholder activist group The Australasian Center for Corporate Responsibility (“ACCR”) has, with the support of circa 100 co-sponsors, submitted a set of climate-focused resolutions to BHP Group’s next AGM. The ACCR is urging the miner to "proactively advocate for Australian policy settings that are consistent with the Paris Agreement's objective of limiting global warming to 1.5° Celsius."

governance in brief

Governance in Brief – September 1, 2022

ASEC strengthens pay-for-performance rules The U.S. SEC has announced amendments to its remuneration disclosure rules, requiring companies to provide information on the relationship between the paid executive compensation and financial performance.

governance in brief

Governance in Brief – August 25, 2022

Activist calls for change at Disney Activist investor Third Point has disclosed a 0.4% stake in Disney and has called for changes at the company, including cost cutting, a spin-off of its sports network and a shake-up of its board.