Archive
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The week in GRC: Norway’s SWF tells boards to plan for climate transition and SEC’s Gensler declines to give timeline on climate risk rule
This week’s governance, compliance and risk-management stories from around the web – The Financial Times (paywall) reported that a group of more than 70 attorneys and academics criticized what they call an ‘extraordinary’ omission from a proposed overhaul of the UK’s Corporate Governance Code, saying an opportunity to formalize the role of general counsel has been missed. The Financial Reporting Council (FRC), which sets and enforces standards for corporate governance, reporting and auditing, is consulting on an overhaul of the Corporate Governance Code. Its aims include making boards more responsible for accurate accounts and making directors more accountable for misconduct.…
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Shareholder activism: Utilities most vulnerable as regional bank risks wane
Data highlights how fast activism focus can shift When Silicon Valley Bank failed in March, it triggered the ‘most challenging period in more than a decade’ for financial institutions, with the very viability of the regional banking model being called into question, according to a new report. At the same time, activist campaigns targeting financial institutions increased by more than 60 percent year-on-year during the first half of 2023. But as it publishes its latest activism vulnerability report, FTI Consulting’s data shows that as rapidly as activists can target a troubled sector, so too can attention shift elsewhere. ‘By the…
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Maximus names successor general counsel
John Martinez was previously general counsel of GE Aerospace Government services company Maximus has appointed John Martinez as its new general counsel. Martinez was previously vice president and general counsel at GE Aerospace. In that position, he was responsible for developing and delivering the company’s legal strategy across the commercial aviation and defense sectors and led several aspects of GE Aerospace’s global portfolio, including its legal, compliance, contracts and government relations organizations. According to his LinkedIn profile, before joining GE Aerospace, Martinez spent more than a decade at Raytheon Intelligence & Space in roles including chief cyber-security and privacy counsel,…
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Data quality biggest challenge to ESG investing, BNP Paribas finds
Investors accelerating low-carbon strategies, according to research Norway’s sovereign wealth fund has added its $1.5 tn voice behind a push for bringing together human capital and human rights reporting. In terms of new research areas, Norges Bank Investment Management (NBIM) also suggests the International Sustainability Standards Board (ISSB) focus on biodiversity over the next two years. The ISSB has asked for opinions on where it should focus its efforts over the near term and last week a 21-strong coalition of investors, representing $1 tn in assets, also called for a focus on human capital and human rights reporting. In its…
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Focus on combined human capital and human rights, NBIM tells ISSB
World’s biggest SWF also wants group to prioritize biodiversity The quality of ESG data remains a major headache for investors as they try to incorporate sustainability issues into their decision-making, according to a new survey by BNP Paribas. The poll of 420 investors, covering asset owners and managers, hedge funds and private equity firms, finds that 71 percent view ‘inconsistent and incomplete’ data as the biggest barrier to ESG investing. Data issues rank ahead of other challenges, such as greenwashing (cited by 61 percent of respondents) and reconciling ESG investing with fiduciary duties (53 percent). BNP Paribas says investors have…
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The week in GRC: EU and GRI make progress on climate reporting and FASB adopts cryptocurrency accounting rule
This week’s governance, compliance and risk-management stories from around the web – Reuters (paywall) reported that the European Financial Reporting Advisory Group (EFRAG) and GRI said they have reached a ‘milestone’ toward helping international companies avoid costly duplication in climate-related disclosures. Several sets of mandatory disclosure norms are being finalized to replace a patchwork of voluntary best practices. Regulators see this as key to stamping out greenwashing but also want inter-operability to avoid unnecessary costs for companies that apply more than one set of disclosure rules. The EU is finalizing its European Sustainability Reporting Standards (ESRS), which have been drafted…
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Governance Matters podcast: As You Sow’s Danielle Fugere talks shareholder proposals, anti-ESG and Scope 3 disclosures
Shareholder advocate reviews lessons from proxy season 2023 and looks ahead to next year In the latest episode of the Governance Matters podcast, As You Sow president and chief counsel Danielle Fugere addresses declining support for ESG-linked proposals and whether that may be due to proponents filing what some asset managers complain are overly prescriptive resolutions that go beyond seeking corporate disclosures. ‘Inevitably, when you have an issue as important as climate change and disclosures are being made but actions aren’t following appropriately, proposals get more prescriptive,’ Fugere tells Corporate Secretary. ‘There are many investors that take positions where they…
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Group petitions SEC to halt JBS listing on climate grounds
Brazilian food company plans dual-listing in New York and São Paulo Climate-change pressure group Mighty Earth has written to the SEC calling for greater scrutiny of a planned IPO by Brazilian meat company JBS. The group describes thelisting – announced in July and expected to happen by the end of the year – as potentially the ‘biggest climate risk IPO in history’, citing both environmental and governance concerns. JBS is the world’s largest meatpacker and is already listed on the São Paulo Stock Exchange. It is seeking a dual listing of Brazilian DRs in São Paulo and class A shares…
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AI-powered diagnostic firm Ceribell hires general counsel
Louisa Daniels was previously head of legal and compliance at Recursion Pharmaceuticals Ceribell, the developer of a diagnostic system powered by artificial intelligence (AI), has hired Louisa Daniels as its general counsel. In her new role, she leads the company’s legal, governance, compliance and ethics functions. Daniels was previously chief legal officer, general counsel and chief compliance officer for Recursion Pharmaceuticals, which she helped take public in April 2021. Before her tenure at Recursion, she was a vice president and assistant general counsel at Pfizer, where at different times she was chief counsel for global product development, global commercial operations,…
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Vanguard joins BlackRock in backing fewer ESG proposals in 2023 proxy season
Asset manager supported 2 percent of ESG-based resolutions this year – The Wall Street Journal (paywall) reported that 3M’s board approved a $6 bn settlement to resolve claims that its earplugs caused hearing loss among veterans. 3M said it would pay $5 bn in cash and $1 bn in stock between 2023 and 2029 to settle the allegations. Veterans allege that 3M and Aearo Technologies, a company 3M acquired in 2008, made faulty earplugs that failed to protect their hearing from noise damage after they were issued by the US military. 3M has said the earplugs work correctly when used…
