November 24, 2022 | Editor: Martin Wennerström
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. Green Century, which contends that Costco lags its peers on climate action, agreed to withdraw a similar resolution scheduled to be considered at the company's next AGM in exchange for the forthcoming reduction targets. So far, Costco has only set Scope 1 and 2 targets for its operational and purchased energy emissions. According to Green Century, the retail giant will update those targets by next month and will expand its targets in the coming year to include the Scope 3 emissions of its entire value chain.
Billionaire wins control of AGL Energy board
Tech billionaire and climate change advocate Mike CannonBrookes has won shareholder approval to overhaul the board of power giant AGL Energy. CannonBrookes’ private company, Grok Ventures, AGL’s biggest shareholder with an 11.28 % stake, has put forward four director nominees for the company’s board ahead of its 2022 AGM, including former Tesla executive Mark Twidell, as part of a broader effort to transition Australia's largest carbon emitter to renewable energy. While Twidell had been endorsed by AGL, the current board opposed the nominations of the other three, on the grounds that they lack relevant experience and skills.
Tencent to divest Meituan stake worth USD 20 billion
Tencent Holdings Ltd. has announced that it will distribute the majority of its shares in food delivery firm Meituan to existing shareholders. The move came after Tencent reported revenue declines for the second quarter, hit by the economic slowdown and China’s regulatory crackdown. The company will issue more than USD 20 billion in Class B stock in the meal delivery giant as a special dividend. The distribution will reduce Tencent’s holding in Meituan from 17% to 1.5%, thus ending its long run as the company’s largest shareholder. Tencent last year cut its stakes in Chinese online retailer JD.com and Singaporean internet company Sea Ltd.
EU regulators take aim at greenwashing
The three European supervisory authorities EBA, EIOPA, and ESMA have issued a “Call for Evidence” to gather information from stakeholders on how to further their understanding of the key drivers of greenwashing in financial services, examples of potential greenwashing practices, the scale of greenwashing, and the areas of high greenwashing risks. The launch follows the request in May 2022 by the European Commission for input from the authorities relating to greenwashing risks and supervision of sustainable finance policies. The deadline for providing feedback to the consultation is January 2023, with a final report to be filed a year later.
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.
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.”
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.
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.