• The Wall Street Journal reports that Investor Group Takes Aim at Antibiotics, Demanding Changes From Fast-Food Companies: “Firms managing or advising on $15.2 trillion of assets are pushing fast-food companies to make changes”.
• The Telegraph reports that Boards with women and minorities get more attacks from hedge funds, finds study: “Companies with diverse boards more vulnerable to activist assaults, academics claim”.
• Bloomberg reports that Activist Fights Tick Up, Along With Settlements: “For the first half of the year, the number of new activist campaigns in the US inched up by 13% to 196 from 173 for the same period in 2022.”
• The Wall Street Journal reports that Elliott Takes Big Stake in Drugmaker Catalent: “Activist pushes for shake-up of contract drug manufacturer’s board”.
• The Wall Street Journal reports that Activist Investor Blackwells Pushes for New Directors at HIS: “New York firm suggests it could wage a proxy battle if status quo at cell-tower operator persists”.
• The New York Times reports that Luxury Goods Maker Kering Under Pressure After Executive Shake-Up: “An activist investor is said to be pushing for change at the French conglomerate, which announced a sweeping reorganization of its top ranks this week.”
• Bloomberg reports that Constellation Announces New Directors in Pact With Activist Elliott: “Constellation has been moving away from being a family-controlled business after the brothers Rob and Richard Sands received a payout for giving up their special voting powers over the company. Rob Sands also stepped down from his board-chair role after the company’s annual meeting on Tuesday.” 

• The Financial Times asks Should investors stay and fight for green change — or divest?: “Remaining engaged can often have a greater impact, this academic study argues”.
• ESG Today reports that 50% of CEOs Have Pay Tied to ESG Goals, up from 15% One Year Ago: IBM Survey: “The earlier study also found that nearly three quarters of executives agreed that ESG needs to be a higher priority for their organizations, but noted challenges to sustainability efforts including inadequate data (the top cited challenge at 41%), followed by regulatory barriers at 39%. The study found that less than half of CEOs (45%) reported confidence in their organizations’ ability to report on ESG strategy and initiatives, and that this lack of confidence was mirrored by consumers, with consumer trust in corporate sustainability statements plummeting over the past few years to only 20% from 48% in 2021.”
• IR Magazine reports that Support continues to fall for climate-focused resolutions, finds Morningstar: “Within the US market, average support has declined by around 9 percentage points over the study period, from 25.5 percent in 2022 to 16.7 percent in 2023. By contrast, the five non-US markets in the research have seen a slight rise in average support, from 14.7 percent to 17.6 percent.”
• ESG Today reports that Amundi Votes Against 500 Directors over Climate Strategy Concerns: “Leading European asset manager Amundi revealed today that it has opposed the re-election of more than 500 directors at 84 companies in the Energies & Utilities sectors so far this year, over concerns about their companies’ climate strategies, representing more than 20% of re-election candidates in those sectors. The firm also stated that it voted against executive remuneration-related proposals at 89 oil & gas and utilities companies, over their failure to include climate-related performance criteria in senior management variable compensation schemes.”
• Ethos publishes its methodology for assessing the climate impact of companies: “On Thursday, Ethos unveiled a new methodology for assessing global warming caused by the activities of listed companies. The methodology also aims to measure the credibility of companies' climate transition plans and the risks that climate change poses to their activities. The "Ethos climate transition ratings" will enable institutional investors to comply with the new transparency and climate reporting requirements.”
• The Telegraph reports on When tobacco is more ethical than Tesla, it’s time to dump ESG ratings: “An ESG cottage industry is now profiting off the trend's popularity among pension funds.”

• The Financial Times reports that BlackRock offers a vote to retail investors in its biggest ETF: “Index fund providers have come under fire from both left and right over their influence on US companies”. The Wall Street Journal’s Editorial Board also wrote about on BlackRock’s False Voting ‘Choice’.
• The Daily Mail reports that Interactive Investor adds voting button on mobile app in efforts to improve DIY shareholders' engagement: “Shareholders who invest through DIY investment platforms will now be able to take part in important company votes on their phones for the first time.”
• The Wall Street Journal reports on Cracking the Proxy Advisory Duopoly: “Glass Lewis and ISS have a 97% market share and conflicts of interest.”

• The Financial Times reports that Over 25% of European financial services board members hold 4 or more posts: “Risk of ‘overboarding’ leads to concern from fund managers”.
• The Financial Times reports that the EU tightens green investment criteria after backlash: “Taxonomy still makes allowances for fossil fuel-intensive industries”.

• The Times reports that NatWest boss Alison Rose quits after Nigel Farage Coutts row: “Bank chief admitted leaking information about account to BBC”.
• The Telegraph reports Pay us more to boost the City of London, say FTSE chiefs: “Square Mile bosses call for more government action to boost pension funds’ investing”.
• The Times reports on the Backlash against Marks & Spencer’s digital AGM: “M&S ‘will think again’ after anger from shareholders at fourth closed annual meeting in a row”.
• The Financial Times reports that Pension schemes argue London listing reforms would damage City: “Investors complain fundamental rights of shareholders would be threatened by FCA’s plans to attract more companies to list in the UK”.
• The Guardian reports that UK investors backtrack on support for climate resolution at oil firms’ AGMs: “Asset management firms accused of sacrificing climate action by voting against shareholder resolution at Chevron and ExxonMobil”.

• Les Echos reports that “Say on Climate” votes could become compulsory for listed Companies (“Le ‘Say on Climate’ pourrat devenir systématique pour les entreprises cotées”): “An amendment adopted by members of the national assembly at the end of the week would oblige listed companies to regularly present their climate strategy to shareholders.”
• Les Echos reports that The call for Employee share ownership maintains its momentum (“L'actionnariat salarié confirme sa bonne dynamique”): “While value sharing is at the heart of parliamentary debates, French interest in employee share ownership continues to grow.”
• Les Echos reports on ESG : The Achilles heel of asset managers? (“ESG : Le talon d’Achille des gérants d’actifs?”) : “Les craintes soulevées par le greenwashing témoignent du scepticisme ambiant autour des affirmations en matière de durabilité. Les gérants d’actifs doivent faire preuve d’une plus grande transparence pour impulser le changement. Une telle démarche contribuera à renforcer l’engagement auprès des sociétés en portefeuille avec, à la clé, une accélération des avancées en faveur des objectifs climatiques.”
• Les Echos reports on the Directors at the forefront of shareholder engagement (“Les administrateurs en première ligne face à l'engagement actionnarial”): “As the period of General Meetings comes to an end, these authors plead for greater consideration of the voice of minority shareholders for better dialogue and attentive corporate governance.”

• The Financial Times reports that Volkswagen, BMW and Mercedes hit by Xinjiang forced labour complaint: “Carmakers are the target of one the first cases brought under Germany’s new supply chain law”.
• Wirtschafts Woche asks What does 29-year-old Sophie Piëch do on the Porsche Supervisory Board? (“Was macht die 29-jährige Sophie Piëch im Porsche-Aufsichtsrat?”): “Leading fund companies such as DWS, Deka and Union massively criticise corporate governance at Porsche and VW. How right they are! A guest commentary by Christian Strenger and Marc Liebscher.”
• Frankfurter Allgemeine reports on Virtual AGMs: “You have to feel the hall” (Virtuelle Hauptversammlungen : „Man muss die Halle spüren“): “The shareholder protector Marc Tüngler is not a friend of the virtual general meeting. A conversation about technical breakdowns, self-portrayals and auditors at the shareholders' meetings.”
• Reuters reports that U.S. SEC readies penalty for DWS in greenwashing probe by end September: “The U.S. Securities and Exchange Commission is preparing to resolve a two-year probe into allegations of greenwashing by the German fund manager DWS (DWSG.DE), with a fine by the end of September, two people with knowledge of the matter said.”

• The Financial Times reports that Naspers and Prosus to exit cross-shareholding: “South African internet group owns more than a quarter of China’s Tencent.“

• Milano Finanza reports that Multiple voting rights should provide opt-in and safeguards for minority investors says Di Noia (OECD) (“Di Noia (Ocse): il voto maggiorato preveda l’opt-in e tutele per gli investitori di minoranza”): “Hearing of the Director for Financial and Enterprise Affairs on the ‘Capitali’ bill. Focus on virtual shareholders’ meetings and international reporting standards for financial statements.”
• Teleborsa reports on doValue: Moody’s Analytics upgrades its ESG rating (“doValue, Moody’s Analytics migliora il rating ESG”): “doValue, company listed on Euronext Milan, and active in the management and recovery of non-performing loans, announced that Moody’s Analytics upgraded its ESG rating from “Limited” to “Robust”, with an ESG overall score equal to 50 points.”
• Teleborsa reports on EGM, new IPOs expected for the beginning of August. Who are the rookies (“EGM, attese nuove IPO a inizio agosto. Chi sono le nuove matricole”): “After two weeks with no bells ringing in Palazzo Mezzanotte, listings in Piazza Affari are about to resume, in a period – between the end of July and the beginning of august – that promises to be full of rookies for the Euronext Growth Milan (EGM), the Italian stock exchange market dedicated to SMEs with high growth potential.”
• Il Sole24Ore reports that Women are now at the helm in 8% of companies with the highest market capitalisation (“Donne al timone nell’8% delle società a maggior capitalizzazione di Borsa”): “Goldman Sachs estimates that to halve the gender pay gap is worth 5-6 GDP points. Globally, women account for one third of the managerial roles.”
• The Financial Times reports that Generali snaps up Conning to create one of Europe’s largest asset managers: “Italian insurer acquires US investment group from Cathay Life.”

• Diario Responsable reports that 4 out of 5 IBEX-35 companies have a committee dedicated to ESG issues (“4 de cada 5 empresas del IBEX cuenta con una comisión dedicada a los asuntos ESG”): “Forética has published the report: "Sustainability in the boards of directors of IBEX 35 companies". The research shows that the focus on ESG issues has been gaining in importance in recent years, as more and more companies recognize the need to address long-term environmental and social challenges to ensure their success and meet the expectations of investors and society as a whole. According to the study, currently, 4 out of 5 IBEX companies have a committee dedicated to ESG issues; 1 out of 2 IBEX 35 companies have an exclusive Sustainability Committee and 29% add this responsibility to a mixed-name committee (Appointments and Sustainability Committee) by sharing attention to other matters of interest to the company.”
• CincoDías reports that Naturgy will give the core of power to the new CEO (“Naturgy dará el núcleo del poder al nuevo consejero delegado”): “The company's shareholders (the CVC, GIP, IFM funds together with Caixa Criteria, with 82% of the share capital) have proposed Mr. Ignacio Gutiérrez-Orrantia as CEO.”
• Consenso del Mercado reports that The chairman of the CNMV acknowledges the damage to governance in the cases of Indra, NH and Unicaja (“El presidente de la CNMV reconoce el daño para la gobernanza de los casos de Indra, NH y Unicaja”): “’There have been specific cases in the last year that have had a very negative effect on the perception of the quality of governance of some large Spanish listed companies. And I would not like to beat around the bush: I am referring, among others, to Indra, Unicaja and NH. With various nuances and peculiarities, there are cases where independent directors have been the adjustment variable for shareholding changes, changes in managers or discrepancies within the board’, said Rodrigo Buenaventura, president of the CNMV, in the opening speech of the XI Forum of Directors of IESE, KPMG and El Mundo.
• Expansion reports that PSOE studies the participation of workers in the boards of directors (“El PSOE estudia la participación de los trabajadores en los consejos de administración”): “PSOE wants workers to participate in the business decisions of the companies. To do this, if the Government is maintained after the elections on June 23, the Socialists will raise the participation of workers in the boards of directors, following the German model.”

• IPE reports that Ethos joins class action against UBS/Credit Suisse merger: “Switzerland-based Ethos Foundation is joining a class action against the valuation given to Credit Suisse at the time of its takeover by UBS. Zurich-based law firm Baumgartner Mächler is preparing a lawsuit on behalf of a single shareholder that will be filed before a competent court in Zurich. The merger act provides the legal basis for shareholders to claim adequate compensation in the form of cash for their shares and, if successful, Credit Suisse shareholders would benefit from the new exchange share ratio, according to lawyers at LegalPass, the start-up launching the class action. Shareholders can claim compensation from what it is considered a discounted price for the acquisition of Credit Suisse on LegalPass’s platform. The goal of the class action is to obtain cash compensation equal to the difference in value between the share price set by the merger agreement and the price set by the court, it said. Ethos Foundation is participating in the financing of the action, but will not receive any compensation from LegalPass.”

• The Financial Times reports on How a SEC rule change has opened more doors for activists: “Despite companies rewriting bylaws to strengthen defences, more investors have won board seats in proxy battles”.
• The Financial Times asks How much is it worth to retain a star CEO?: “New pay package for Disney’s Bob Iger is just the latest in a series of inducements for high-profile bosses”.
• The Financial Times reports that US corporate jet spending jumps as executives keep pandemic-era perks: “Meta spent the most on private flights last year, including more than $4mn for Sheryl Sandberg”.
• The Financial Times reports that Exits of diversity executives shake faith in US companies’ commitments: “Hiring jumped after George Floyd’s murder but is falling in the face of economic and political pressures”.
• The Financial Times reports that US audit fees that lag inflation squeeze accountants: “S&P 500 companies paid $5.3bn in 2022, up just 3.2% as they held line on costs”.
• Bloomberg reports that ESG Advocates Say GOP Backlash Gives Industry an Opportunity: “Delaware State Treasurer Colleen Davis said it’s a good thing that more conversation is centered on the future of environmental, social and governance factors because it will help the investment strategy become better defined.”
• Bloomberg reports that Blue States Counter Anti-ESG Laws With Pension, Climate Measures: “Investment managers working with public pensions in Illinois would have to disclose how they integrate factors such as greenhouse gas emissions and labor practices into their decisions and analyses under a measure (H.B. 2782) awaiting action by the governor. A separate Illinois measure (S.B. 2152) would require additional disclosures related to pension proxy voting, while a new Colorado law requires climate risk reporting by the state’s public retirement association.”
• Reuters reports that Republican state officials threaten legal action over company diversity policies: “The officials singled out about a dozen companies that they said have used racial quotas and other explicitly race-based practices, including Apple Inc, Alphabet Inc's Google, Microsoft Corp, and Uber Technologies Corp.”

• Forbes reports on How East Asia Is Dealing With Greenwashing: “With the surge in popularity of environmental, social and governance (ESG) investing, it has become more important than ever to ensure that related companies and projects are as “green” as they purport to be. PwC estimates that ESG-related assets under management (AuM) will reach US$33.9 trillion by 2026, from US$18.4 trillion in 2021. With a 12.9% annual growth rate, ESG assets are on track to make up 21.5% of global AuM by 2026. With that in mind, throughout East Asia, governments are developing different approaches to combat the growing problem of “greenwashing” – the act of making false or misleading statements about the environmental benefits of a product or practice. Because consumers are often willing to pay more for eco-friendly products, greenwashing can be lucrative for the perpetrators.”
• Business Times reports that on Temasek’s emissions problem is Singapore’s emissions problem; Asia’s protein transition: “Temasek, Singapore joined at hip for climate goals. Singapore state-owned investor Temasek’s total portfolio emissions rose slightly to 27 million tonnes of carbon dioxide equivalent for the year ended March 2023, from 26 million tonnes the previous year. The main culprit? Singapore Airlines (SIA), which saw group passenger capacity recover to 79 per cent of pre-pandemic levels as global air travel restarted. Speaking to reporters, Temasek chief executive Dilhan Pillay said much of Temasek’s ability to hit its decarbonisation targets hinges.”

• The Financial Times reports that Japanese business urged to act on ‘sustainable capitalism’ pledge: “Companies are under pressure to lift pay to spur growth after 30 years of deflation and stagnant wages”.
• The Financial Times reports that Japan Inc must do more to reduce greenwashing risks: “Many companies and financial institutions lack expertise or evidence to support sustainability and ESG claims”.
• The Financial Times reports that Japanese banks accused of ‘gender-washing’ over women in management: “Wage gap persists as inconsistent definitions for senior roles inflate female representation.”
• Bloomberg Law reports that Toyota Soars on Optimism Over EV Plans, Shareholders’ Meeting: “Toyota shares surged the most since March 2020 following the reappointment of Chairman Akio Toyoda at the company’s annual shareholder meeting Wednesday, a leadership decision some overseas investors had opposed. The shares were up 8% early in the afternoon, trading at their highest level since early 2022. The AGM had become a referendum of sorts on the Japanese carmaker’s electric-vehicle strategy. A small but growing list of shareholders opposed the reappointment of Toyoda as chairman, arguing that the auto giant has fallen behind rivals because of his commitment to a ‘multipathway’ approach — offering customers various options by selling gasoline and hybrid cars while investing in EVs, hydrogen and carbon neutral fuels. Some are also demanding transparency on lobbying over climate policies that appear to favor EVs or seek to ban cars that burn fossil fuels.”

• Asia Financial reports that US Keen to Help China on Deal to Curb Methane Emissions: “A key goal of this week’s talks between US climate envoy John Kerry and his Chinese counterpart Xis Zhenhua is to get an agreement on methane emissions. Kerry arrived in Beijing on Sunday after months of diplomatic disruptions to try to boost cooperation between the world’s two biggest carbon polluters. Experts have said any move to cooperate on methane – a greenhouse gas responsible for roughly 30% of global warming – could provide a way forward. ‘Methane is particularly important for our cooperation,’ Kerry told a congressional hearing on Thursday in Washington. “China agreed to have a methane action plan out of our prior talks in Glasgow (in 2021), and again in Sharm el-Sheikh” last November.”

• SCMP reports that HKEX proposal for mandatory climate disclosures gets nod from businesses, but not without concerns over timeline, scope: “Representatives of Hong Kong’s business sector agree with the stock exchange’s plan to make climate-related disclosures mandatory and aligned with international standards – but not without concerns. The business community agrees that the move will help the city maintain its competitiveness as a global financial centre, according to feedback from a three-month consultation period that ended on Friday. But concerns exist around the level of ambition, as well as the challenges companies will face achieving compliance. During the consultation, Hong Kong Exchanges and Clearing (HKEX) sought market feedback on enhancing climate-related disclosures under its environmental, social and governance (ESG) framework, including making such disclosures mandatory, as opposed to the current ‘comply or explain’ basis. New disclosure requirements would be introduced in alignment with climate standards from the International Sustainability Standards Board (ISSB), a body that was set up during the COP26 global climate summit in Glasgow in 2021 to consolidate various reporting standards. The ISSB released its finalised standards on June 26.”
• SCMP reports that ESG disclosures: Hong Kong firms should start verifying climate, sustainability data ahead of audit mandate, experts say: “Companies serious about enhancing the credibility of their sustainability disclosures should proactively engage external auditors to attest to the quality of their disclosures, before auditing of such information becomes mandatory, according to experts. External audits can enhance confidence in environment, social, governance (ESG) information that stakeholders consider the most important and which outside investors and lenders rely upon while making capital-allocation decisions that help fight climate change and reach other sustainability objectives. ‘As ESG assurance is an emerging trend, companies should be seeking assurance over information that is the most material to key stakeholders, such as investors and creditors, as a first step,’ Tan Ee Sin, EY’s climate change and sustainability services partner for Hong Kong and Macau, told the Post.”
• Charles Moore looks at HSBC’s ‘Defence Equipment Sector Policy’: “I have before me HSBC’s ‘Defence Equipment Sector Policy’. As part of its ‘responsible banking’, the bank not only, as might be expected, refuses to provide financial services for manufacturers, sellers, buyers or users of biological and chemical weapons, but also of ‘other weapons’. These are defined as ‘guns or missiles, platforms for weaponry, such as tanks and combat aircraft; and material parts of a weapon or a platform for weaponry with no generally accepted non-military use, such as the turret of a tank’. Thus – my example, not HSBC’s – no British company making tanks, NLAWS or Storm Shadows to help Ukraine could get any help from Britain’s largest bank. HSBC says this is because all that it does is ‘underpinned by the principles and values which drive our overall approach to business’. These same principles and values see no problem in closing the accounts of anti-Beijing democratic parties in Hong Kong.”

• Reuters reports on India taking alternate road to ESG reporting, KPMG global audit head says: “India is taking an alternate approach towards disclosures norms related to environmental, social and governance (ESG) metrics compared to some other global economies, said a senior executive at KPMG.”
• The Times of India reports that Sebi mandates listed companies to disclose family pacts: “In a decision aimed at boosting corporate governance by seeking stricter disclosures from promoterled companies, Sebi has made it mandatory for listed entities to disclose all family agreements, which could potentially impact the management or control of these firms.”
• Financial Express reports that Resolutions of two Adani Group firms run into IiAS veto: “Sardana has been the managing director of ATL, since May 2018 and managing director of Adani Power (APL), another Adani Group company, since July 2018.”

• The Australian Government Treasury published its Consultation paper on Climate-related financial disclosure: “This consultation paper seeks views on proposed positions for the detail, implementation and sequencing of standardised, internationally-aligned requirements for the disclosure of climate-related financial risks and opportunities in Australia. In particular, views are sought the proposed positions relating to coverage, content, framework and enforcement of the requirements.”
• ESG Today reports Australia to Launch Decarbonization Plans for Key Sectors: “Australia’s Minister for Climate Change and Energy Chris Bowen announced today that the government will develop sectoral decarbonization plans, starting with six key emissions-intensive sectors, to support the government’s net zero plan and interim climate targets. Sectors selected include electricity and energy, industry, the built environment, agriculture and land, transport, and resources. Additionally, the waste sector will be included in the industry plan and the circular economy will be a cross-cutting issue for all sectors.”
• The AFR reports that ASIC accuses Vanguard of greenwashing in $1b-plus bond fund: “Despite promising consumers its ‘Ethically Conscious Global Aggregate Bond Index Fund (Hedged)’ did not invest in bond issuers with significant business activities in a range of industries, including those involving fossil fuels, Vanguard was actually invested in activities linked to oil and gas exploration.”