May 12, 2022 | Editor: Martin Wennerström
TotalEnergies faces shareholder pressure to boost climate targets
A group of TotalEnergies shareholders has requested that the firm tighten its greenhouse gas reduction targets to better align its climate strategy with the Paris Agreement. The proponents contend that the proposal would make Total the first oil and gas firm to align its 2030 targets with the agreement’s 1.5°C goal. The firm opposes the proposal, arguing that it encroaches on the board’s legally defined prerogatives. In response, the proponents have called on French regulator AMF to ensure that the item appears on the agenda. The firm has nevertheless announced new disclosure commitments and proposed an advisory shareholder vote on an annual sustainability and climate report, which would focus on the company’s energy transition strategy and implementation.
Activist investor pushes back AGL demerger
SEC probes Didi Global over its U.S. IPO
Investor sues Netflix over subscriber growth figures
A Netflix shareholder is suing the firm for allegedly misleading the market about its subscriber count, seeking monetary damages on behalf of shareholders who owned Netflix shares between October 19, 2021, and April 19, 2022. The shareholder, a Texas-based investment trust, claims that Netflix failed to inform investors about the declining subscriber growth and the loss of subscribers on a net basis. Notably, in April the firm’s share price dropped 35% in one day after reported earnings showed 200,000 lost subscribers in Q1. The firm has attributed its underperformance to increased competition, inflation, and the suspension of its Russian services.
Governance in Brief – June 8, 2023
European Parliament approves CSDDD The European Parliament has approved the “Corporate Sustainability Due Diligence Directive.” Under the new rules, companies will be required to identify and address the negative impact of their activities and value chains on human rights and the environment. Additionally, companies will need to implement climate transition plans, and, in the case of companies with more than 1,000 employees, tie directors' variable compensation to target achievement.
Governance in Brief – June 1, 2023
Citigroup to IPO Banamex after Mexican gov’t interventions hamper sales deal Citigroup has announced a plan to spin off its Mexican business, Banamex, after a failure to sell the unit to conglomerate Grupo Mexico. Citigroup had been in talks with German Larrea, CEO and Chairman of Grupo Mexico, for over a year in an attempt to orchestrate the sale of the bank, which was first announced at the start of 2022.
Governance in Brief – May 25, 2023
Activist investor pushes for leadership and strategy changes at NRG Energy Activist investor Elliott Investment Management has disclosed a 13% stake in the US-based NRG Energy and called for leadership and operational changes at the company to remedy its “meaningful underperformance.” The investor urged NRG to add independent directors with experience in the power and energy sector to its board, noting that it has already identified five executives to guide the operational and strategic changes.