Trump puts off decision on Paris climate change agreement

US Paris Climate Change Agreement

Following recent concerns that US could pull out of the Paris climate change agreement, President Trump has put off his decision on this until he returns from the G7 group meeting being held at the end of the month.

Sean Spicer, the White House Press Secretary, said recently that the President had been meeting with his team for quite a while and wanted to continue to meet with them.… Read the rest

ShareAction: Investors to oppose BP and Shell’s pay policies

BP remuneration policy

Responsible investment pressure group, ShareAction is calling on investors to oppose the executive pay policies of oil companies, Shell and BP, arguing that they are not aligned with the long-term interests of shareholders.
ShareAction said that the remuneration for executives at both oil companies is rewarding the achievement of corporate strategies which could put shareholder value at risk as the economy shifts towards low carbon energy production.… Read the rest

Shareholders vote down Pearson’s remuneration report

Pearson remuneration report

Educational services company Pearson, lost the vote on its remuneration report at its AGM last week (5th May). There were also significant votes opposing the company’s remuneration policy and the re-election of the remuneration committee chair.

If abstention votes are included in the total of votes there was a 61% vote against the remuneration report, 32% vote in favour and 7% abstention rate.… Read the rest

Fortune 500: clean energy target increase

US climate change clean energy

Nearly half of Fortune 500 companies—48%—have at least one climate or clean energy target, according to a report from WWF, Calvert Investments, CDP and Ceres. This is up 5% from an earlier 2014 report.

Power Forward 3.0 also found that the top companies the Fortune 100 continue to take the lead in tackling climate change with 63% of Fortune 100 companies have set one or more clean energy targets.… Read the rest

FRC begins probe of KPMG and its Rolls-Royce audit

Rolls-Royce audit bribery KPMG

The Financial Reporting Council (FRC) has commenced an investigation under its audit enforcement procedure into the conduct of KPMG, in relation to its audit of Rolls-Royce’s financial statements from 2010 to 2013.

The FRC’s investigation follows an announcement in January that a Deferred Prosecution Agreement (DPA) had been reached between the Serious Fraud Office (SFO) and the engineering company.… Read the rest

Guidance on stewardship code in Japan published

Japan corporate governance code

Guidance on Stewardship Code for institutional investors in Japan to perform their duties effectively has been published by the Principles for Responsible Investment (PRI), the United Nations Environment Programme Finance Initiative (UNEP FI) and the Generation Foundation as part of its series on Fiduciary Duty in the 21st century.… Read the rest

Wells Fargo shareholders demonstrate their discontent

Wells Fargo

Shareholders in scandal-hit US bank Wells Fargo gave the company a signal of their dissatisfaction in voting at its recent AGM.

While the re-election of the directors was passed with the majority of votes cast the proportion in favour for many of the directors was considerably lower than normal.… Read the rest

CII voices opposition to Republicans’ Financial CHOICE Act

investors Financial Choice Act

The US Council of Institutional Investors (CII) has voiced its opposition to aspects of the Republicans’ Financial CHOICE Act which was formally introduced by the House of Representatives’ Financial Services Committee Chairman Jeb Hensarling this week.

Hensarling believes the Act is a replacement for what he terms the “failed” Dodd-Frank Act which was enacted in the wake of the 2008 financial crisis.… Read the rest

USS calls on AkzoNobel to engage with PPG over its bid

AkzoNobel USS PPG

UK pension fund, Universities Superannuation Scheme, (USS) has called on the Dutch paintmaker AkzoNobel to engage constructively with its US rival PPG which has recently submitted a third bid for the company, AkzoNobel said it will consider the proposal in line with its fiduciary duties and acting under the Dutch governance code.… Read the rest

Anglo-American gains shareholder backing for executive pay policy

AngloAmerican executive pay remuneration

Global mining group Anglo-American received strong support from shareholders for its remuneration policy as well as its remuneration report at its AGM this week.

The remuneration report gained 99% support while the policy – which is a binding vote – received a 93% vote in favour.… Read the rest

UN Environment and World Bank launches Sustainable Finance plan

United Nations Environment World Bank sustainable finance

The United Nations Environment Programme (UN Environment) and the World Bank have launched a summary of their Roadmap For A Sustainable Financial System. The aim is to have a final roadmap agreed by October this year.

This latest publication forms part of the UN Environment inquiry into the design of a sustainable finance system that has been running since 2014 and has a mandate to continue until the end of 2017.… Read the rest

Malaysia launches revised Corporate Governance Code

Malaysia corporate governance code integrated reporting

The revised Malaysian Code on Corporate Governance (MCCG) released by the Securities Commission Malaysia (SC) has been welcomed by the International Integrated Reporting Council. This follows a shift in the code’s reporting approach to embracing integrated reporting.

The IIRC said integrated reporting is increasingly becoming a principle of 21st century corporate governance, often referenced in codes as regulators seek to encourage a meaningful dialogue between businesses and investors focused on the strategic drivers of long term value creation.… Read the rest