Archive
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Proxy season highlights need to control corporate narratives, experts say
Corporate Secretary Webinar looks at lessons for governance professionals from 2023 proxy season – CNBC reported that President Joe Biden was due to meet with artificial intelligence (AI) experts in San Francisco as the US government looks at how best to regulate the technology. Many in Washington, DC are seeking to learn more about AI’s risks and benefits for society so they don’t repeat the mistakes around lack of early regulation on social media and other internet technologies. The issue has generated a lot of discussion in the Biden administration, with White House principals meeting to discuss AI two to…
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How legal pushbacks are targeting ESG investing in 2023
Elizabeth Goldberg, Erin Martin and Pamela Wu look at developments across the ESG space this year, notably the variety of legal and political efforts to curb related investing Many companies have found themselves between a rock and a hard place this year with respect to ESG amid competing forces of restrictive legislation, antitrust inquiries and class-action lawsuits. As we approach the year’s midway point, here are five trends in ESG that have dominated the space so far in 2023. Proxy season: More shareholder proposals but support falls As the 2023 proxy season approaches its conclusion, a significant increase in the…
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Anti-ESG funds see inflows slow, Morningstar finds
Firm’s analysts have classed 26 funds as anti-ESG The level of inflows to anti-ESG funds, which explicitly oppose investing along ESG-based principles, has slowed significantly since spiking last year, according to a report from Morningstar. In the third quarter of 2022, inflows to these funds hit $375 mn – five times greater than the previous record, the study notes. But interest quickly tailed off and inflows stood at less than $100 mn in the first quarter of 2023. Morningstar analysts have classed 26 funds as anti-ESG, noting that the products cover a range of different strategies. These include ‘vice’ funds…
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Corporate inaction on biodiversity must be addressed, report says
Study calls for stronger regulation and mandatory reporting rules Governments and companies must do more to encourage investments that protect against biodiversity loss, according to a new report from Impax Asset Management and Imperial College London. The study looks at why companies invest in activities that protect biodiversity, either within their own operations or across their supply chain, and how this work can be scaled up. Researchers examined five case studies across different sectors where companies had undertaken projects to protect the natural environment. They find that biodiversity concerns ‘were not the primary drivers for corporate action’ across the sample…
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The week in GRC: ESG mentions in earnings calls have declined and EU lawmakers back tougher AI rules
This week’s governance, compliance and risk-management stories from around the web As the global focus on climate change intensifies, regulatory bodies are actively working to enhance climate-related disclosures in corporate reporting. A crucial step in this direction is the pending climate disclosure rule introduced by the SEC. Let’s delve into the implications of this rule for corporate secretaries and IROs, who play pivotal roles in ensuring effective communication and compliance within their organizations. Understanding the SEC’s pending climate disclosure rule In brief, the SEC’s proposed climate disclosure rule seeks to enhance transparency and consistency regarding climate-related information provided by public…
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SEC’s pending climate disclosure rule: Implications for corporate secretaries and IROs
Prepare for evolving investor expectations, regulatory oversight and more – The Guardian reported that the conservative backlash against US brands seems to have reached new heights over the last few weeks as companies show their support for Pride month and other LGBTQ+ issues. It is part of a broader reaction against corporate involvement in social, environmental or political issues. Corporate celebration of Pride month has seemed less radical in recent years amid growing criticism that parades and other events celebrating LGBTQ+ rights have become too corporatized. Critics have also pointed out that some of those same businesses fund politicians that…
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ESG topics in proxy statements continue to ascend
By contrast, mentions of ESG initiatives on earnings calls are falling, says Nick Mazing at AlphaSense With very few shareholder vote surprises this proxy season, we looked at the longer term proxy trends to assess what kinds of topics are generating increased attention by US corporate boards. Unlike conference call transcripts – where we have seen a general decline in ESG topics – proxy statements mentioning a wide range of ESG topics continue to increase. We analyzed quarterly proxy filings data going back to 2018: every chart shows the quarterly proxy filings containing a certain term. We then curated representative…
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LTSE hires general counsel for services unit
Lisa Young was general counsel with LendingTree LTSE Group, owner of the Long-Term Stock Exchange (LTSE), has hired Lisa Young as general counsel of its LTSE Services business, effective June 5. Young most recently was general counsel with LendingTree. Before that she was general counsel at Axiom Global and Enova International. Earlier in her career she was assistant general counsel at JPMorgan Chase. Her experience includes advising and scaling high-growth companies and returning value to shareholders through organic growth, IPOs and acquisitions. The LTSE launched in September 2020 after gaining approval from the SEC. It came into being with listing…
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New categories announced for Corporate Governance Awards 2023
Nominations due by July 21 Corporate Secretary has announced three new categories for its 2023 Corporate Governance Awards, with nominations due by July 21. The new awards will recognize the work of governance professionals in board assessments and director training and education. A special category will honor outstanding work by an independent director. The 16th Corporate Governance Awards will be presented at a gala ceremony in New York on November 8. The awards recognize companies’ and individuals’ outstanding achievements in governance, risk and compliance (GRC). Entries can be submitted – free of charge – by corporate secretaries, general counsel, compliance…
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The Toro Company names new general counsel
Joanna Totsky will join from Cooper-Standard Holdings NYSE-listed Rite Aid has hired Thomas Sabatino as executive vice president and chief legal officer (CLO). In his new role, Sabatino oversees the pharmacy chain’s legal affairs, including enterprise risk management, compliance, regulatory affairs and privacy issues. He reports to Busy Burr, interim CEO of Rite Aid, and is a member of the company’s executive leadership team. Sabatino most recently was executive vice president and general counsel at Tenneco. According to his LinkedIn profile, before that he was executive vice president and general counsel at Aetna and previously senior executive vice president, chief…