February 24, 2022 | Editor: Martin Wennerström
SEC continues work on climate risk disclosure rules
U.S. SEC Chair Gary Gensler has responded to criticism from senators over the delayed publication of the agency’s
mandatory climate risk disclosure draft, noting that “it’s essential [that the SEC] get this right”. In a letter sent to Gensler,
Senator Elizabeth Warren called for the “release of the strongest requirements possible” amid reports that the delay
stems from disagreements between SEC Commissioners over whether Scope 3 emissions should be included among
disclosure requirements. Warren has requested that the agency produce a publication timeline by February 23 and that
it advise on its authority to enforce mandatory environmental disclosure. The SEC had initially announced the release
of the draft rule by October 2021, with a subsequent postponement until January 2022. Issuer interest groups have
meanwhile requested that the regulations include legal protections against lawsuits that might be brought in case of
Salesforce ties executive pay to ESG measures
Salesforce has announced plans to introduce ESG performance metrics as part of its executive compensation programs. For FY2022, the company will include ESG measures tied to minority representation, air travel emissions, as well as the number of suppliers signed up to the greenhouse gas reduction targets that the firm intends to include in all future procurement contracts. Salesforce is the latest in a series of companies, such as Alphabet and Nike, that will tie pay to ESG performance criteria.
Crown Resorts accepts Blackstone takeover offer
Crown Resorts’ board of directors has recommended support for Blackstone’s USD 6.3 billion takeover bid for the Australia-based casino operator. The offer, at AUD 13.10 a share, represents a 5.7% premium on the February 11 closing price, and is 10.5% higher than the AUD 11.85 per share offer Blackstone made in March 2021. Shareholders are expected to vote on the proposal in the second quarter of 2022. Founder James Packer’s approval is required for the deal to pass, as his 37% ownership can break the 75% supermajority needed to approve the transaction.
Bluebell Capital designs split-off plan for Glencore’s coal business
Bluebell Capital Partners is proposing to separate Switzerland-based mining company Glencore’s coal activities into a new company. Glencore would have a 10% economic interest in the new firm through supervoting Class A shares, while the non-supervoting B shares would be listed. The plan would reduce Glencore’s coal exposure in economic terms, while giving it the power to wind down the new firm’s coal activities in a controlled manner. Bluebell argues that this arrangement would eliminate Glencore’s trading discount relative to competitors with reduced coal exposure.
Governance in Brief – September 22, 2022
DOJ unveils crimefighting policies for corporate misconduct The U.S. Department of Justice has announced a new “carrots and sticks” approach to fighting corporate crime that encourages companies to report misconduct while making it more difficult for repeat offenders to enter settlements and deferred prosecutions.
Governance in Brief – September 8, 2022
BHP shareholders seek coherent climate policy Shareholder activist group The Australasian Center for Corporate Responsibility (“ACCR”) has, with the support of circa 100 co-sponsors, submitted a set of climate-focused resolutions to BHP Group’s next AGM. The ACCR is urging the miner to "proactively advocate for Australian policy settings that are consistent with the Paris Agreement's objective of limiting global warming to 1.5° Celsius."