FRB Proposes Draft Principles for Large Banks’ Management of Climate-related Financial Risks |

The Federal Reserve Board (“FRB”) requested comment on draft “Principles for Climate-Related Financial Risk Management for Large Financial Institutions”. The proposed principles provide banks with “a high-level framework for the safe and sound management of exposures to climate-related financial risks for Board-supervised financial institutions with over $100 billion in assets.” The FRB said that the…

Biden Administration requires federal suppliers to use CDP’s model for climate risk

One of the obstacles to better ESG assessments is inconsistency of disclosures. The Biden administration’s new requirement for federal suppliers will mean that corporate executives, shareholders, regulators, and third party ratings firms will have much better data for assessing risk. Acknowledging the vital role of disclosure around environmental impact, the White House Council on Environmental…

ISS: Support for U.S. Shareholder Proposals on Climate in 2022

Without data on how many proposals were withdrawn following successful negotiations, it is hard to evaluate these conclusions. Despite a steady decrease  in the portion of environmental and social proposals receiving less than majority support from 2017 through 2021, 2022 bucked the trend likely due to  some institutional investors viewing them as overly prescriptive as…

PWC Directors Survey 2022

PWC’s annual directors survey shows a “new trust crisis,” a widening disparity between corporate insiders’ opinions on how they are perceived by consumers and the reality. While 87% of business executives believe consumers highly trust their company, only 30% of consumers actually do. Trust is hard won and easily lost, and stakeholders are coming to…

OCC Prioritizes Climate Risk

The Office of the Comptroller of the Currency has highlighted climate risk as a concern for banks: Climate-related financial risks: The OCC continues its work to better understand climate- related financial risks in the context of safety and soundness, particularly as they relate to risks at large banks. During FY 2023, the agency will continue information…

Do Any Climate-Related Incentive Comp Plans Get a Passing Grade?

As You Sow has issued an excellent; new report evaluating the 47 companies responsible for 80 percent of carbon emissions, based on the incentive compensation based on achieving environmental goals. The companies were assessed on three indicators: One company got a B. Four got Cs. None got an A. Their findings:

The Shareholder Commons Unveils New Investor Strategy for Shielding Portfolios from Climate Change and Public Health Threats

The Shareholder Commons, a non-profit advocate for diversified shareholders, today released two case studies focused on the harmful impacts of climate change and antimicrobial resistance. The case studies demonstrate the gap between company-first ESG advocacy and portfolio-first system stewardship and prove to investors that measuring financial success on an enterprise-by-enterprise basis will never motivate companies…

Environmental groups ask P&G investors to vote against CEO as board chair

Universal proxy will put more pressure on corporate insiders to engage on these proposals. [E]nvironmentalists have been prodding P&G to make changes on forestry for several years.”These proposals are more powerful because they get more support,” said Nell Minow, vice chair of corporate governance consultancy ValueEdge Advisors, adding that recent regulatory changes make it easier…