• SEC updates and 2023 expectations
• How to navigate the new clawback rules
• Pay versus performance trends and lessons learned
• Evolving trends in shareholder engagement
• Shareholder proposals and voting results

• The Economist argues that Activist investors are needed more than ever: “Low rates, passive investing and ESG have left opportunities for active shareholders”.
• The Economist argues Why activist investors are going to have a busy year: “If you think they have gone soft, think again”.
• The Washington Post shares an Activist Pro Tip: Don’t Put Your Girlfriend on the Board: “As an activist investor, Alex Denner has made a career out of telling companies what they are doing wrong and convincing shareholders that he can make them better. A cringey corporate governance disaster risks ending his ability to do either.”
• The Wall Street Journal reports that Toyota Boss Faces Pushback Over EV Strategy in Shareholder Vote: “Some investors want Chairman Akio Toyoda off car maker’s board”.
• The Wall Street Journal reports that After Illumina CEO’s Fall, Other Executives Are Expected to Take Hard Look at Deals: “Francis deSouza resigned from gene-sequencing maker after regulators challenged $7.1 billion deal, triggering proxy fight”.
• The Wall Street Journal reports that Elliott Just Wants NRG to Be a Boring Company: “NRG Energy’s CEO is thinking about ways to grow. Maybe its investors just want cash.”
• Reuters reports that ISS backs both Politan directors in boardroom challenge at Masimo: “Masimo "is a public company that operates like a private business, and is disregarding shareholders in the process." The board needs to effectively oversee management and that can be achieved only through board change”.
• Reuters reports that Activist investor J. Daniel Plants resigns from Cutera's board: “Plants, who has served on Cutera’s board for eight years, said in a letter his resignation was a direct result of “numerous and irreconcilable disagreements” with the board.”
• The Financial Times reports that Second activist investor reveals stake in gambling group 888: “HG Vora upped its holding after group of former GVC directors went public with their own share”.

• The Atlantic argues that The Hottest Trend in Investing Is Mostly a Sham: “Republicans portray ESG as the epitome of ‘woke capital.’ The truth is closer to the opposite.”
• The Financial Times reports that Glencore shareholders push back against climate strategy: “The vote against the company’s 2022 climate report reaches 30%, triggering a consultation process under UK law”.
• Reuters reports that Exxon, Chevron shareholders soundly reject climate-related petitions: “The results supported the two largest U.S. oil producers in resisting pressure from investor groups calling for the pair to follow European rivals in accepting tougher emissions reductions goals.”
• The Financial Times reports that TotalEnergies suffers investor revolt over climate goals: “Over 30% back activist motion against French oil group at annual meeting as police use tear gas against protesters”.
• The New York Times reports that Following Setbacks, Climate Activists Rethink Their Approach: “Climate-focused shareholder activists have scored only a few victories in their efforts to push oil giants to adopt cleaner business strategies.”
• The Wall Street journal reports that Companies Quiet Diversity and Sustainability Talk Amid Culture War Boycotts: “Mentions of social-impact initiatives during earnings calls have declined, reversing a trend that had picked up after the killing of George Floyd in 2020”.
• Responsible Investor reports that ‘Far fewer’ majority supported ESG proposals likely this season: “Influential proxy adviser Glass Lewis supports new re-baselining proposals at US oil majors  and stranded assets request at Exxon.”
• Pensions & Investments reports that BlackRock, State Street support far more ESG resolutions than Vanguard: “Vanguard supported just 28% of the proposals, while BlackRock and State Street supported 55%, and 60%, respectively, Morningstar found.”
• Sustainable Views reports that LGIM takes aim at company chairs with stronger climate engagement: “The UK's largest asset manager is widening its analysis of corporate climate policy and ramping up pressure on boards. Legal & General Investment Management says that nearly 350 companies now qualify for "voting sanctions" at their annual meetings, which typically mean that LGIM will vote against re-electing the chair.”
• Reuters reports that Investors in biggest climate pressure group don't like to pressure: “Members of the largest investor coalition focused on convincing the corporate world to act on climate change rarely flex their muscles to pressure the worst polluters, an analysis of shareholder voting records and interviews with members show.  Climate Action 100+ (CA100+), set up in 2017, comprises more than 700 investment firms representing $68 trillion in assets.  It set goals in its first phase to get the world's 166 largest corporate emitters of greenhouse gases to commit to net-zero targets, introduce governance and oversight of climate risks and disclose progress. In phase two, launched last week, it wants to get the biggest polluters to implement cuts to their emissions by 2030, so they can show they are on track to meet pledges to bring emissions down to zero on a net basis by 2050. Shareholder voting data reviewed by Reuters, however, shows that investors in the group refrain from using the biggest weapon in their arsenal - the ability to vote against board directors - even when the polluting companies refuse to act.  Shareholder votes in favour of re-electing directors at 15 companies out of about 40 that CA100+ deems climate laggards, because they have not set 2050 net-zero targets, comprised on average more than 95% of the shareholder votes cast this year, in line with 2022 and 2021 levels, the data shows.”

• Gary Retelny, the CEO of ISS, wrote a statement titled “Our Proxy Advice is Apolitical”: “My firm, Institutional Shareholder Services (ISS), has over recent months been subject to a growing chorus of partisan attacks meant to malign our work and brand us as ‘woke activists’ and ‘social engineers’ pushing an ESG agenda. It is time to set the record straight and to stop politicizing proxy advice. ISS is not an activist or advocacy organization. Rather, we are an impartial, federally regulated service provider to institutional investors who direct and control their own proxy voting decisions. Our mission is to provide high-quality, independent, and timely proxy research and advice based on the voting guidelines our clients, not we, select.”
• Forbes reports that Asset Managers Prompt Renewed Focus On Director Overboarding: “What’s new is the decision of several of these leading companies to move away from strict application of their own overboarding guidelines, in favor of greater reliance on nominating and governance committees to enforce director commitment practices.”
• ESG Today reports that LGIM Sets Climate, Biodiversity & Lobbying Expectations for “Dial Mover” Companies: “Expectations for companies now include setting comprehensive and certified net-zero targets, including a transition plan with interim targets, disclosure of actions and investments embedded in the companies’ net zero plans, disclosure of whether executive remuneration is aligned with emissions targets, and disclosure of climate lobbying activities – including membership in trade associations and action plans if the lobbying activities of the associations are not aligned with a 1.5°C scenario. For companies in sectors in which there is a clear link between biodiversity and net zero strategies, companies are expected to assess impacts and dependencies, and for companies in sectors in which the transition could have direct social implications, LGIM will expect the incorporation of just transition factors in decarbonization strategies”
• Board Agenda reports that Hybrid AGMs maximise shareholder participation: “Avoid virtual-only annual general meetings: although pragmatic in an emergency, they water down shareholders’ rights.”

• The Wall Street Journal reports that Companies on the Defensive as European Union Rolls Out Class-Action Lawsuits: “Legal changes across the bloc could see companies hit with more pricey U.S.-style claims under consumer protection laws.”
• Bloomberg reports that Yellen Says US Is Concerned About EU’s ESG Supply Chain Rules: “The Corporate Sustainability Due Diligence Directive has already made its way through the European Parliament and is headed for EU member states amid intense lobbying from several interest groups to water down its final wording. If adopted, the wide-ranging bill would force companies to identify and address human rights and environmental violations up and down their value chains.”
• Sustainable Views reports that EU issues final proposals for sustainable financing strategy: “The EU proposals include guidance to ensure ESG ratings providers are reliable and transparent, and methodologies are robust – but some critics have called them “burdensome and bureaucratic”.  The European Commission has published the final part of its sustainable finance package expected under this administration”
• Reuters reports that EU proposes new shake-up of ESG ratings agencies: “The European Union on Tuesday proposed new regulations for firms selling environmental, social and governance (ESG) ratings that could force some to restructure their businesses in a major shake-up of the industry.”

• The Guardian reports that Boohoo airs ‘serious concerns’ as bosses at Revolution Beauty fired then rehired: “CEO, CFO and chair of makeup brand reinstated after being voted out by almost three-quarters of investors”.
• The Economist reports that Pay for bosses in Britain falls far behind America. Tough luck: “Is London suffering because bosses there are paid too little?”.
• The Financial Times argues Why I want my name to appear on shareholder registers: “Sign a petition, have your say, and demand better communication”.
• The Financial Times reports that THG chief Matthew Moulding relinquishes ‘golden share’ rights to ease governance concerns: “Ecommerce group suffers shareholder rebellion against one of its directors at AGM”.
• Board Agenda reports that Corporate governance code review boosts internal controls: “UK watchdog’s proposals include giving audit committees greater reporting responsibilities and addressing ‘overboarding’.”
• Board Agenda reports that Dual class shares have become ‘dual class stock lite’: “A consultation is underway on new rules for dual-class shares following changes in 2021 described as ‘unlikely to move the needle’ on attracting new listings to London.”
• Board Agenda reports that UK boards struggle to embed ESG in strategy: “Most recognise the importance of sustainability, but face challenges in translating ESG aims into strategy and operations, research finds.”
• Herbert Smith Freehills reports that the High Court refuses permission for climate-change activist shareholder to bring derivative action on behalf of Shell plc against its directors: “In a significant decision for boards seeking to grapple with how to respond to the impact of climate change on their company’s business, the High Court has refused permission for ClientEarth, a minority shareholder in Shell plc, to continue a derivative action on behalf of the company against its directors (the Directors) under s.261(1) of the Companies Act 2006 (CA 2006): ClientEarth v Shell plc & Ors [2023] EWHC 1137 (Ch).”
• The Financial Times reports on An eyebrow-raising payout at LetterOne: “Governments should consider appointing trustees of assets frozen by sanctions”.

• The Financial Times reports Inside the great stand-off between French activists and oil investors: “As the showdown at Total’s recent AGM demonstrated, the two camps are speaking past each other”.
• IPE reports Corporate governance: Voting and stewardship expectations: “To prevent investors from being overloaded, the French SIF has begun evaluating every Say on Climate proposal in France”.
• Les Echos reports on the Crisis at Atos: the contested president saves his seat during a tense AGM ("Crise chez Atos : le président contesté sauve son siège lors d'une AG tendue"): “Several shareholders demanded the departure of Bertrand Meunier, chairman of the board of directors, because of the difficulties of the IT group which, in two years, lost 4 billion euros and had to resolve to prepare a split of its activities.”

• The Financial Times reports that Activists clash with leading German chemical group over board vote: “The tussle between proxy agency-backed PrimeStone and Engine and Brenntag over strategy and governance intensifies”.
• The Financial Times reports that Porsche SE board member charged with money laundering: “Siegfried Wolf is one of two indicted ‘entrepreneurs’ in case involving allegations of ‘hidden assets’ of about €6.8mn”.
• Responsible Investor reports that Court dismisses investor case at VW on right to file climate lobbying proposal: “Shareholder rights in Germany have suffered a setback after a regional court dismissed a legal case brought against Volkswagen by European pension funds over their right to file a climate lobbying proposal at the German carmaker.   In October, six investors, including Swedish government pension fund AP7 and the Church of England Pensions Board (CEPB), began legal action against Volkswagen after the company again refused to table their disclosure-focused climate lobbying proposal, arguing that the topic was beyond the competence of shareholders.   In its decision, dated 8 May and shared with Responsible Investor by AP7 this week, the higher regional court of Braunschweig denied the investors the right to appeal its decision that their proposal was not permissible. A key issue for the court was that it believed the request could go beyond simply seeking greater transparency and influence the board’s strategy.”
• Börsen-Zeitung reports that Brenntag prevails against activists (“Brenntag setzt sich gegen Aktivisten durch“): “Brenntag's Annual General Meeting was like a good crime thriller: the suspense lasted until the last minute.“

• The Financial Times reports that Italy strips China’s Sinochem of its influence as Pirelli’s largest investor: “Rome removes right to appoint chief executive or set strategy because of worries about Chinese state interference”.
• ETicaNews reports 2023 IGI, here is the Top10 (“IGI 2023, ecco la Top10”): “Eni leads the ranking, moving up a position compared to last year, followed by Hera (first in 2022) and Poste Italiane (tied for fifth in the last edition), with Snam and Erg tied for fourth.”
• Teleborsa reports that Terna again confirmed in Italian and international sustainability indexes (“Terna riconfermata negli indici italiani e internazionali di sostenibilità”). “Terna confirms itself at the pinnacle of sustainability in Italy and globally.”
• Il Corriere della Sera reports on Brembo, registered office in the Netherlands: “We need the tools to grow even with acquisitions” (“Brembo, sede legale in Olanda: «Ci servono gli strumenti per crescere anche con acquisizioni”). “Looking for prey or for new shareholders. Grow up to span the car revolution. But this requires a paradigm shift and so the second life of Brembo will restart in the Netherlands.”
• Milano Finanza reports on the “Capitali” government bill, Savona (Consob): shareholders’ meetings behind closed doors may prejudice shareholders’ rights (“Ddl Capitali, Savona (Consob): le assemblee a porte chiuse possono ledere i diritti degli azionisti”). “Focus on multiple voting: rules must protect minority shareholders, also adapting the regulation on mandatory tender offers. The Ministry of Economy and Finance leaves the choice on board slates to the Parliament.”
• Milano Finanza reports on Women on boards of directors, Italy complies with EU objectives (“Donne nei consigli di amministrazione, l’Italia è conforme agli obiettivi Ue”). “By June 2026, large companies listed in Europe are requested to have 40% of female non-executive directors, or one third of female directors in general. EU data show that Italy is fully compliant, thanks to the Golfo-Mosca Act. But according to Professor Marina Brogi, it takes time for the change to reach management and executive positions as well.
• Il Sole24Ore reports on Leonardo: new organizational structure adopted (“Leonardo: varata la nuova struttura organizzativa”): “Leonardo announces that the new organizational chart has been adopted today (15 June 2023), with the aim of rationalizing, simplifying and optimizing corporate governance.”

• Cuatrecasas published the Fifth edition of the ManuelOlivenciaPrize for Good Corporate Governance (“Premio Manuel Olivencia”): “As every year, the Jury will be supported by a full team of external advisors to identify the listed companies that best meet its evaluation criteria. It will also be responsible for encouraging the country's leading institutions to share nominations that meet the requirements of the call for entries, or to provide information to endorse those they consider worthy of the award. Voluntary nominations will also be possible, provided that the following points are met: Be a company whose shares are listed on the Spanish stock exchanges, and as an exception, the Award will be open to individuals who, acting as an employee or on behalf of or in the interest of a company that complies with the above, have distinguished themselves individually in good governance actions. The deadline for submitting nominations is 19 July at 17:00.”
• El Economista reports that Ibex companies increase the weight of female directors to almost 40% (“Las empresas del Ibex suben el peso de consejeras hasta rozar el 40%”): “Twenty firms meet the government's threshold after Repsol, ACS and Arcelor join the list. Cellnex is the only one with more women than men.”
• CincoDias reports on Iberdrola, the first Spanish company to hold its shareholders' meeting in the Metaverse (“Iberdrola, primera empresa que celebra su junta de accionistas en el Metaverso”): “First came the streaming sessions and other digital channels, but now comes the definitive leap: the metaverse. Iberdrola, in line with its firm commitment to digitalisation, is the first Spanish company to hold its General Shareholders' Meeting in the metaverse. On 17 June, the world leader in renewables made it possible to follow its meeting in the metaverse, which could be accessed immersively, i.e. with virtual reality glasses, or from any computer or mobile phone.”
• La Vanguardia reports that Unicaja Banco will look for a new CEO from among senior managers from inside and outside the bank (“Unicaja Banco buscará un nuevo consejero delegado entre altos directivos de dentro y fuera”): “Unicaja Banco, Spain's fifth-largest financial institution, will be looking for a new CEO from among senior executives, both in-house and from outside the bank, following the dismissal of the current CEO, Manuel Menéndez.”
• CincoDias reports that Sacyr to appoint a new CEO in 2025 (“Sacyr tendrá un consejero delegado junto al presidente ejecutivo Manuel Manrique en 2025”): “The role of Sacyr's chief executive, in the hands of Manuel Manrique (69 years old) since 2011, will be split in two with the recovery of the position of CEO in the 2025 financial year.”
• Valencia Plaza reports that Amadeus board approves Maroto's re-election as CEO (“La junta de Amadeus aprueba la reelección de Maroto como consejero delegado”): “Amadeus' general meeting of shareholders, held on June 26, approved all the items on the agenda, including the distribution of a dividend of 0.74 euros per share, which will be paid on 13 July against 2022 results and will represent half of the profit.”
• Forbes reports that Solarpack appoints Leo Moreno as its new CEO (“Solarpack nombra a Leo Moreno nuevo consejero delegado”): “Solarpack has appointed Leo Moreno as its new CEO, while Pablo Brugos, who currently holds this position and is a co-founder of the firm, will remain "closely associated" with the company as a non-executive member of the board of directors.”

• Ethos argues that the First 100% virtual general meetings in Switzerland undermine shareholder rights: “The proxy cards for the 2023 general meetings of Aevis and Swatch Group did not offer shareholders the possibility to delegate their voting rights, which the Ethos Foundation regrets as it makes it more difficult to exercise this fundamental shareholder right. The procedure for exercising such an option was also not specified in the document either.”

• The Financial Times reports on the Anatomy of an AIG payday: “Getting judged by your peers has never been so lucrative”.
• The New York Times reports that Netflix Shareholders Vote to Reject Executive Pay Packages: “Netflix shareholders voted on Thursday to reject the lucrative pay packages of the company’s leaders, including the co-chief executives Ted Sarandos and Greg Peters. The vote is nonbinding and can be overruled by the company’s board of directors the next time it meets.”
• The New York Times reports on Reassessing the Board Fight That Was Meant to Transform Exxon: “As investors press the oil giant on climate issues, activists say that a hedge fund’s eco-focused victory over the company two years ago has achieved little.”
• The Financial Times reports that Investors pull back support for green and social measures amid US political pressure: “Climate and human rights proposals overall receive fewer votes in 2023 corporate proxy season”.
• The Wall Street Journal reports that Nikola Shareholders Reject Plan for More Stock Shares: “Electric-vehicle maker needs cash for truck production”.
• Bloomberg reports that A Greenwashing Lawsuit Against Delta Aims to Set a Precedent: “A class-action lawsuit targets the airline’s claim to carbon-neutrality, which has in the past rested in part on its use of carbon offsets.”
• Reuters reports that ISS backs election of Langer to replace former Biogen director Denner: “ISS issued its recommendation after the unexpected announcement that three directors -- Denner, William Jones and Richard Mulligan -- would not stand for reelection. The company named only one new director candidate as the other seats would not be filled.”
• Pensions & Investments reports that SEC stock buyback rule fuels fight over mandated disclosures: “The U.S. Chamber, the Texas Association of Business and the Longview Chamber of Commerce filed a lawsuit May 12 in the 5th U.S. Circuit Court of Appeals, New Orleans, arguing that the SEC rule disincentivizes companies from using stock buybacks and violates the Administrative Procedure Act and U.S. Constitution.”
• Corporate Secretary reports that Lobbying proposal attracts strong support at McDonald’s AGM: “According to an SEC filing, the proposal received 50.3 percent of the votes cast at the May 25 AGM.”
• The Harvard Law School Forum on Corporate Governance published a post titled It’s Time to Call a Truce in the Red State/Blue State ESG Culture War: “Over the past year, the debate over Environmental, Social and Governance (ESG) standards in the United States has revealed stark policy contrasts between red and blue states. Red state officials have proposed and enacted “anti-boycott” bills which bar state business with firms that divest from favored industries. Blue states, on the other hand, have widely considered efforts to mandate divestments from the same industries. Neither approach makes economic sense. Recognizing this creates a real opportunity for a truce, based on fiduciary duty and the separation of political issues from investment decisions”

• The Star reports that Top ESG funds in Asia boost returns: “Asia’s top environmental, social and governance (ESG) funds are reaping the rewards of investing in Japan, a market largely ignored even by local money managers focused on sustainability. Four of the five best performers in the region this year are focused on Japan, boasting total returns of more than 17%, according to data compiled by Bloomberg of ESG funds with at least US$250mil (RM1.2bil) in assets. That tops the average gain of 1.1% for Asian ESG funds overall, and the 16% return for Japan’s Topix stock gauge. Money managers with sustainable mandates in Japan have generally avoided their domestic market, citing relatively low returns and subpar ESG practices. Those that have stuck close to home are benefiting from improved corporate governance, a dose of inflation and an endorsement from billionaire investor Warren Buffett. That’s compounding optimism about Japanese stocks, which have been among the best performers in the world this year. The Alma Eikoh Japan and Goldman Sachs Japan Equity Partners join the top Asia ESG funds this year, with returns of more than 20% each.”

• The Financial Times reports that Activist shareholders threaten Japan’s AGM season: “Chief executives are vulnerable to a current push for systemic shifts in climate policy and transparency”.
• The Wall Street Journal reports on Targeting Toyota for Its Electric-Vehicle Heresy: “Public pensions and proxy advisers try to punish the company using corporate governance as a pretext.”

• The Business Times reports that China’s installed non-fossil fuel electricity capacity exceeds 50% of total: “China’s non-fossil fuel energy sources now exceed 50 per cent of its total installed electricity generation capacity, state media outlet Xinhua said on Monday (Jun 12), citing an official at state planner the National Reform and Development Commission. Non-fossil fuel power sources, such as wind and solar power, account for 50.9 per cent of the country’s total installed capacity, marking the early completion of a government target proposed in 2021, under which renewable capacity was planned to exceed fossil fuel capacity by 2025. By the end of 2022, China’s installed power generation capacity was 2,564.05 GW, according to data from the National Bureau of Statistics (NBS).”
• SCMP reports that Green bond issuance in China grows 35 per cent to record US$155 billion in 2022 as nation strives to meet climate goals: “Green bond issuance in China grew 35 per cent last year to reach a high of US$155 billion as the country’s climate commitment became further integrated into its overall policy and economic system, according to a report by UK-based non-profit Climate Bonds Initiative (CBI) on Friday. The world’s second-largest economy must rapidly scale up its sustainable-debt markets to help achieve its goals of becoming carbon neutral by 2060 and peaking emissions before 2030, according to the report, China Sustainable Debt State of the Market. Green bonds are fixed-income securities designed to fund environment-friendly projects. “China’s economic and social development have underpinned the growth of a formidable [sustainable] debt market with unique characteristics,” according to the report, jointly released by CBI, China Central Depository & Clearing Research Centre, CIB Research and Standard Chartered Bank. “This experience can support whole-economy transition by extending access to capital to entities operating in the hard-to-abate sectors.””
• The Standards reports that China gets tough on AI scams: “China has stepped up legislation towards artificial intelligence deepfake scams, according to mainland media. In response to the growing use of "AI deepfake" technology for fraudulent purposes, the Chinese legislature has announced its commitment to strengthening governance and law enforcement relating to the issue, reported The Paper. The relevant departments will take measures in accordance with the law to hold individuals involved in such activities legally accountable.”

• SCMP reports that Hong Kong raises record US$6 billion from green bond offering as city pushes ahead with its sustainable finance hub ambitions: “Hong Kong has made its biggest green bond issuance, raising US$6 billion in a multicurrency deal as part of the government’s push to establish the city as an international green financing hub. The offering included dollar bonds worth US$2.25 billion maturing in three, five and 10 years, €1.5 billion (US$1.6 billion) of four- and nine-year tranches and 15 billion yuan (US$2.2 billion) of two-, five- and 10-year notes. The sale topped the city’s US$5.75 billion multicurrency green bond offering in January, which was the largest environmental, social and governance bond issuance in Asia at the time. The offering has been well received and attracted close to US$30 billion in orders from a wide spectrum of investors, according to a statement on Thursday evening by the Hong Kong Monetary Authority, which acted as the government’s representative in the offering.”
• SCMP reports that Hong Kong takes new step to promote ESG agenda to reluctant and wary small business owners: “Hong Kong’s trade promotion agency is stepping up efforts to support the city’s business owners, helping enhance their environment, social and governance (ESG) credentials and raise their competitive edge in the global market. The Trade Development Council will add ESG consultations into its Transformation Sandbox programme for small and medium-sized enterprises (SMEs), which also offers branding and digitalisation advisory services. The council expects to hold more than 100 business consultations related to ESG at no cost to business owners, hoping to change their mindset about the “sustainability” factor in their operations. The offer will be extended to some 500 SMEs in various sectors including construction, transport, catering and services. “For a lot of SMEs, during the pandemic period or even now, it is not easy,” Patrick Lau, the council’s deputy executive director, said. “They do not want an extra pressure of higher cost. But if they do not participate, more customers might be lost.”
• SCMP reports that Hong Kong has ‘pipeline’ of family offices ready to set up in the city, Financial Secretary Paul Chan says: “Chan did not elaborate on the number of family-owned wealth-management firms planning to set up in Hong Kong. His comments came as the government launched a service-provider network as part of a multi-tactic effort to lure 200 new family offices by 2025. While generational transfer of wealth is the main priority of family offices, the UBS Global 2023 report showed that many such firms do not have the necessary processes, governance or risk management in place. When it comes to accessing professional services for wealth management, globally only 42 per cent of family offices have a wealth-succession plan, with the same percentage having a governance framework. Smaller family offices with assets of US$100 million to US$250 million are especially likely to fall short of best practices in these areas. The service-provider network will serve as a two-way channel to communicate with the industry on the latest developments and opportunities for family offices in Hong Kong, said Fong, as well as to mobilise service providers around the globe to advocate for opportunities in and via Hong Kong for family offices. “The network’s mission is to help develop the family-office ecosystem, and promote Hong Kong as a leading global hub and a preferred destination for family offices,” Fong said.”
• SCMP reports that Hong Kong finance sector on the hook to deploy AI responsibly: “Hong Kong’s asset managers should not fear losing their jobs to artificial intelligence (AI), but the finance sector must take care to deploy the technology responsibly while embracing the opportunities it presents, according to the CEO of the Securities and Futures Commission (SFC). “We are on the cusp of another revolution that will change the way we live, work and play,” Julia Leung Fung-yee said at the Hong Kong Investment Funds Association conference on Monday. “As the AI competition heats up, technologists compare generative AI to the discovery of chips.” Asset managers may adopt generative AI chatbots as tools, and need not fear being replaced because AI will “free up time and capacity for asset managers to better strategise and perform”, Leung said. “I believe generative AI can be used responsibly to augment, rather than replace, asset managers in strategic decision making.””

• The Business Times reports that Singapore won’t fully benefit from expected lowering of green hydrogen production costs: experts: “A NEW study estimates that sustainably produced hydrogen could reach price parity with its fossil-based counterpart before 2035, but experts said that this alone will not be enough to keep the renewable fuel affordable for Singaporeans. A report by Deloitte published on Thursday (Jun 8) said that the price of green hydrogen – or hydrogen produced with renewable power – could come down sufficiently to match that of hydrogen produced from fossil fuels by 2035. While almost all of the hydrogen produced today is from fossil fuels and is therefore not renewable, Deloitte expects green hydrogen to account for 85 per cent of the hydrogen market by 2050.”

• Business Standard reports that 'Against' votes by institutional investors surged to 6.31% in 2022: “Others'-non-promoters and non-institutional investors-- polled just 29.01 per cent of their shares, an improvement over 26.31 per cent in the previous year.”
• The Economic Times reports that ESG jobs in India sees 223% rise since 2019: “Jobs related to the environmental, social, and governance (ESG) sector have grown over 223% in India between April 2019 to April 2023, according to job site Indeed. The increase over the past three years showcases the remarkable shift as companies increasingly prioritise sustainability efforts. With concerns about climate change and the urgent need to build more diverse and inclusive workforces at the forefront of many business leaders’ minds, an increasing number of firms are pledging to take action on climate, social and other issues by following Environmental, Social and Governance (ESG) standards.”

• The Australian Financial Review (AFR) reports that ASIC warns lawyers, accountants on ‘seismic’ climate shift: “The corporate watchdog has put accountants and lawyers on notice about the looming challenge of providing advice to companies about how to comply with complex disclosure rules on sustainable finance and climate risk. ASIC chairman Joe Longo said implementing and adhering to the broadening environmental, social and governance global framework would be on a par with navigating “major tax reforms” such as the introduction of the goods and services tax.”
• Guardian Australia argues that From the oceans to ‘net zero’ targets, we’re in denial about the climate crisis: “The scientific consensus is we need to aim for negative emissions by phasing out fossil fuels, not just removing carbon from the atmosphere”.
• The Australian Financial Review (AFR) reports that PwC is struggling to convince anyone it is fixing its [ethics] problems: “It’s hard to go past PwC for a showcase example of how an internal problem - the misuse of confidential tax information by a partner - can become a spectacular public relations disaster if it continues to be badly handled rather than cauterised.”