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.
The State of ESG Survey 2022 for CSR and Sustainability Professionals
With the increasing pressure to enhance ESG performance, Sustainalytics is launching our State of ESG 2022 Survey to help practitioners understand how CSR and sustainability are evolving and how their roles are changing to meet the demands. If you are a CSR or sustainability professional, we want your opinion.
Webinar Replay: Oct 19, 2022 | Incorporating International Business Norms into ESG
With the growing demand to integrate ESG considerations into the investment process investors are trying to understand the complexity of applying international norms to companies. Join our webinar to learn more about international standards, how to incorporate them into ESG investing and examples of positive financial and ESG outcomes.
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.
Cybersecurity: A Growing ESG and Business Risk
Cyber risk is one of the most immediate and financially material ESG risks that organizations face today. As companies continue to digitalize and business models shift to incorporate a complex mix of technology and data supply chains, stakeholders are reckoning with a significant realignment in global security risk.
What CSR and Sustainability Professionals Think: 7 Key Insights From Our Corporate ESG Survey
Earlier this year, we surveyed over 500 professionals working in CSR and sustainability to understand how their roles are evolving, what’s motivating their companies to address ESG risks, the key ESG challenges they’re facing, what resources peers are using to meet their challenges, and much more.
The Role of Sustainable Aviation Fuel in Achieving Decarbonization by 2050
Meeting the aviation's industry's goal of decarbonization by 2050 will require a collective effort and more ambitious measures than those currently in place, including carbon offsetting, route optimization, fuel efficiency and fleet renewals that involve a shift to more eco-friendly aircraft. However, all of these measures still revolve around fossil fuels as a source of energy.
The Morningstar Sustainalytics Corporate ESG Survey Report 2022: CSR and Sustainability in Transition
CSR and sustainability teams are taking on greater responsibility for ESG activities. As a result, corporate sustainability professionals need to understand how ESG is evolving, how peers are facing ESG risks, and how to approach ESG reporting and ratings.
UK Stewardship Code 2020 - Stewardship Report
Morningstar Sustainalytics has maintained its status as a signatory of the UK Stewardship Code 2020 (the Code) per the Financial Reporting Council (FRC). Download the report to review how Sustainalytics' commitment to high stewardship standards meets the service provider principles set under the Financial Reporting Council’s revised Code.
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.
The Impact of Cyberattacks on Stock Prices
Data privacy and cybersecurity-related issues have become major drivers of business risk in recent years. Based on Morningstar Sustainalytics’ Data Privacy and Security (DP&S) incident data, this report reviews recent DP&S incident trends and assesses the impact of significant cyberattack Incidents on stock returns over time.
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.
Data Privacy and ESG Risk: 7 Key Questions Every Company Needs to Address
As businesses become more digitized and reliant on personal data, cybersecurity has become a top concern among CEOs and investors. Companies that fail to effectively manage and fund related measures will face a slew of ESG-related challenges and risk.
Climate Change, Innovation, and Cybersecurity in the Defense Industry: New Opportunities for ESG Investors
While perhaps not a widely considered link between the defense industry and climate change, several Eurosatory conference sessions addressed how climate change can intensify security risks and threats.
What’s Happening in Sustainable Finance: Blue Bonds Make Waves, ‘Sleeping’ Sustainability-Linked Loans Raise Eyebrows, and More
In this month’s rundown of sustainable finance market developments, we discuss the outlook for renewables, interesting blue bond transactions and the emerging trend of “sleeping” sustainability-linked loans causing concern among market participants.
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.”