DOL/EBSA has a new proposed rule on ESG and proxy votes. Stay tuned for more information and our formal comment. NOTE: Comments due by December 13, 2021 and we will be up against an avalanche of opposition. The Department of Labor (Department) in this document proposes amendments to the Investment Duties regulation under Title I…
The rise of the minority shareholders – The Hindu BusinessLine
Vinit Bolinjkar, Head of Research, Ventura Securities, said it is high time that companies start recognising the rights of minority shareholders. The rights of minority shareholders need to be protected by independent directors but the problem currently is that many of them act on behalf of the promoters. Deepak Sanchety, Ex-Head of Surveillance, SEBI, said…
ESG investing and 401k funds are everywhere. Does “ethical investing” work? – Vox
It’s also up for debate whether avoiding certain investments and divesting actually works. When investors sell off shares of a company whose practices or business models they object to, they are giving up their seat at the table and to other investors who don’t care. Divestment campaigns, like the one Harvard announced to no longer…
SEC.gov | Sample Letter to Companies Regarding Climate Change Disclosures
The Commission has stated that a number of its disclosure rules may require disclosure related to climate change.[2] For example and depending on the particular facts and circumstances, information related to climate change-related risks and opportunities may be required in disclosures related to a company’s description of business, legal proceedings, risk factors, and management’s discussion…
SEC Sued Over NASDAQ Road Diversity Rule
Once again, those who love to rhapsodize about the free market want to protest when they don’t like the results. A group claiming to be about free enterprise is suing the SEC over its approval of the NASDQ listing standards on board diversity. For the thousandth time, that rule is not a quota. It is…
CII Files Amicus Brief in Shareholder Proposal Rule Challenge
CII has filed a “friend of the court” brief in the challenge filed by Jim McRitchie and As You Sow to the SEC rule restricting shareholder proposals that was published in a flawed, rushed rulemaking in the last weeks of the Trump administration. Some highlights from the brief: In its haste to adopt these rule…
ICGN Governance Principles Updates: Evolution of corporate governance in the face of existential change | Ethical Boardroom
Key governance changes: We have emphasised the importance of independent board leadership and a clear division of responsibilities between the role of the chair and CEO to avoid unfettered powers of decision-making. We also think the roles of both should be clearly described and publicly disclosed as well as the role of the lead independent…
Short supply of green assets ‘may create bubble’ | Business | The Times
A shortage of suitable environmentally friendly assets for pension schemes to invest in could contribute to a “green asset bubble”, MPs have warned. The Commons’ work and pensions select committee said that pension schemes had the potential to help economies to cut emissions, but warned that there were only a limited number of suitable assets…
SEC Wants Better Disclosure of Proxy Votes from Fund Managers
The Wall Street Journal writes: The Securities and Exchange Commission proposed a rule that would require money managers to disclose more information on how they use their voting power. When investors buy a mutual fund and exchange-traded fund from an asset manager, the money manager votes on shareholder proposals on behalf of the investors. Shareholder…
Korn-Ferry: Advice to Boards About ESG
Korn-Ferry tells boards that ESG is here, it is their responsibility, and that clear communication and outreach are essential. • ESG and sustainability is a board level topic. It is growing in importance and urgency and isn’t going away anytime soon. • It is a significant risk management issue, yet it also offers new growth opportunities. • Investors,…
