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Monthly Roundup – December 2024
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US: Georgeson publishes its 2024 Investor Voting Report
This report provides an analysis of patterns in the voting for BlackRock, State Street and Vanguard in the 2024 annual meeting season. It also provides some insights into the influence of the proxy advisory firms, ISS and Glass Lewis.
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UK & Europe: Georgeson publishes its memo on the 2025 ISS policy updates in the UK and across Continental Europe
On 17 December 2024, ISS published its voting policies for the UK and Continental Europe for the 2025 AGM Season. The Georgeson memo covers the major updates for both the UK and Continental Europe.
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UK & Europe: Georgeson publishes its memo on the 2025 Glass Lewis policy updates in the UK and across Continental Europe
Glass Lewis released the first of its updated benchmark voting policies for 2025 for the UK and Continental Europe on 14 November 2024. It subsequently released the voting policies for individual major European markets including France, Germany, Italy, the Netherlands, and Spain. The new benchmark policies will be effective from January 2025.
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UK & Europe: Georgeson’s Kiran Vasantham authored a contribution to Diligent’s Investment Stewardship 2024 report titled “Why shareholder engagement matters”
“Active and meaningful engagement with shareholders can significantly increase the likelihood of successful annual general meetings and the achievement of governance goals, writes Kiran Vasantham, head of investor engagement in the U.K. and Europe, Georgeson.”
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France: Georgeson’s Matthieu Simon-Blavier contributed a chapter titled “Communicating directly with shareholders” to the book “OPA: professional practices and interdisciplinarity”
“It’s clear that, for the majority of shareholders, particularly individual shareholders, the financial interest, i.e. the price offered by the acquirer, remains the main argument. Nevertheless, in hostile situations, it is possible that other arguments (sovereignty, employment, strategy...) may take precedence and dominate the communication of the companies concerned.” Writes Matthieu Simon-Blavier
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Spain: Georgeson’s Carlos Sáez Gallego sat down for an interview with Consejeros magazine
“In a few months, Georgeson will celebrate its 13th anniversary of its Spanish operations, the 'proxy solicitor' most used by the large Spanish listed companies. In fact, they work for more than half of the IBEX 35. They gather support for their meetings, advise on governance... and are essential when, as now, a takeover bid is carried out. ‘As a 'proxy solicitor' we request the vote at a meeting, in a takeover bid we act as a 'global information agent' and what we look for are acceptances’ he explains.”
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Germany: Georgeson’s Matthias Nau presented at DSW’s International Investors’ Conference on a panel titled “Investor Engagement: International Perspectives”
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Bi-annually, DSW hosts its International Investors' Conference jointly with BETTER FINANCE. The Conference especially addresses foreign institutional investors and other organisations from all over the world.
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- ESG Today reports Switzerland to Require Companies to Disclose 2050-Aligned Net Zero Roadmaps: “The Swiss government announced the launch of a consultation on a series of new proposals to update its sustainability-related disclosure rules for companies, including a requirement for companies to provide plans to align with Switzerland’s net zero by 2050 climate target, and for climate-related reporting to be based on standards such as the ISSB or the EU’s ESRS. The proposals would amend Switzerland’s current Ordinance on Climate Disclosures, which came into force this year, with initial climate reporting by large companies beginning in 2025. Under the initial law, large Swiss companies and financial institutions are required to report on climate-related factors including greenhouse gas emissions, climate-related risks and impact, and targets and transition plans, based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).” See announcement here.
- The Financial Times reports AllianceBernstein to sue Switzerland over $17bn Credit Suisse debt wipeout: “US asset manager will join case over decision when UBS took over struggling rival”.
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- Estrategias de Inversión reports A fund believes that the changes to Grifols' board of directors are insufficient and is calling for a "governance review." (Un fondo ve insuficientes los cambios y pide una “pronta revisión de la gobernanza”): “Flat Footed, one of Grifols' minority shareholder funds, has stated that the appointment of Paul Herendeen as a proprietary director "is far from sufficient", as he is the only "truly independent" member of the board of directors of the 13 members, according to a letter sent to the board of directors. The fund also expressed surprise at the announcement of the appointment of a second board member, Pascal Ravery. During the past few months, when shareholders not present on the board have been calling for the establishment of an independent board, the board has not mentioned Ravery or his appointment. Furthermore, the fund also regretted that Grifols has undertaken transactions that “have destroyed value and conflicts of interest are present throughout the board, among members of the Grifols family, and in Tomás Dagá in his capacity as partner of Osborne Clarke Spain.”
- CincoDías reports Corporación Financiera Alba soars on the stock market after the March family announces its proposed delisting (Corporación Financiera Alba se dispara en Bolsa tras anunciar los March su exclusión de Bolsa): "The share price has increased by more than 70%. The offer will be at 84.2 euros per share, above its all-time high."
- Europa Press reports Alquiler Seguro socimi debuts on the BME Scaleup (La socimi de Alquiler Seguro se estrena en el BME Scaleup): “Alquiler Seguro Asset Market (ASAM), the new Alquiler Seguro socimi, started trading on BME Scaleup on December 5 with the traditional ringing of the bell on the Madrid Stock Exchange, although it has marked the same starting price on its debut in this market, 13.8 euros per share, according to company sources reported to Europa Press.”
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North American developments
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- The Korea Times reports Government set to amend Capital Market Act to protect shareholders: “The ruling bloc is seeking to amend the Capital Market Act to clarify the responsibilities of boards of directors in safeguarding shareholders' interests during mergers or spinoffs, according to the financial regulator, Monday.”
- Bloomberg reports World-Beating Surge Propoels Korea Zinc to ‘Inexplicable’ Levels: “Investors keen on profiting ahead of Korea Zinc Co.’s intensifying proxy battle next month are pushing the zinc smelter’s stock to the top of a global equity index. Korea Zinc’s shares jumped as much as 12% on Thursday to reach a fresh high, extending its year-to-date surge to roughly 270%. An eight-day stretch of advances is its best winning streak in over two years, doubling the stock’s value and making it the best performer on MSCI’s gauge of world equities over that period.”
- The Financial Times reports Samsung’s princeling heir Lee Jae-yong grapples with corporate crisis: “Chip woes and labour unrest test the mettle of third-generation leader of South Korea’s most valuable company”.
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- China Daily reports CFA Institute eyes growing demand for ESG talent in China: “The CFA Institute, the global association of investment professionals, has been ramping up capabilities in China's market, eyeing the country's growing demand for financial professionals in the ESG or environmental, social and governance market, said the top executive of the institute.”
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- ESG Today reports Hong Kong to Require IFRS-Aligned Sustainability Reporting Starting in 2025: “The Hong Kong government announced the release of its Roadmap on Sustainability Disclosure in Hong Kong, outlining the details of its plans to implement sustainability reporting requirements for companies, with a view to introducing reporting based on the IFRS Foundation’s ISSB standards for some listed companies on a comply-or explain basis next year, and with mandatory requirements for large-cap companies starting in 2026.”
- The South China Morning Post reports BDO awards top honours for ESG excellence: “The accountancy firm’s sixth annual awards ceremony recognises Hong Kong companies with outstanding environmental, social and governance achievements”.
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- The Australian Financial Review reports Gender diversity: How backlash is becoming a problem: “Mining behemoth Rio Tinto is discovering pockets of male resentment at the push for greater diversity. Rio aims to improve its gender balance by 2 per cent a year, but the Australian chief executive has conceded that the miner had ‘some work to do’ to reduce the resistance to creating a more diversified workplace. Additionally, a survey published earlier this year for the Australasian Railway Association (ARA), which represents rail sector companies and occupations, found that 23 per cent of men had reported ‘negative gender bias’ in the previous 12 months.”
- The Australian Financial Review reports Linking executive pay to net zero is working – sort of: “The private sector will have to keep doing the heavy lifting when it comes to decarbonising global economies. A recent analysis of links between executive pay with climate targets and performance in Australia benchmarked heavy emitter companies’ remuneration against best-practice guiding principles for embedding climate performance in executive pay was concerning. For most of the principles, only 10 per cent or fewer companies were highly aligned. Without a clear and measurable transition strategy, tying executive pay to climate performance will not be effective.”
- The Australian Financial Review reports Calls grow for Westpac to reveal energy transition plan thinking: “Westpac will again face calls to explain how it assesses high-emitting corporate borrowers’ energy transition plans, as shareholder activists prepare to reapply pressure at its annual meeting on Friday [20/12]. Westpac’s lending to Santos, APA Group and JERA has reignited anger among activists who argue financing expansionary fossil fuels projects is incompatible with net zero commitments. Since the Paris Agreement in 2015, Westpac has lent $9.8 billion to fossil fuel companies, more than half to companies expanding coal, oil or gas production, according to Market Forces.”
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Head of ESG, UK and Europe
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