• ‘Say on climate’ advisory votes on company plans and disclosures were put forward for the second consecutive year
• Increasing spotlight on environmental and social resolutions
• Three times as many companies put forward advisory votes on their climate action plans and disclosures compared with 2021
• Proxy advisors maintained their strong influence on voting outcomes in 2022
• Resolutions relating to the remuneration of executives continue to be the most contested resolution type across Europe

• AGM trends: the key areas of investor focus for the season ahead
• ESG activism: dealing with shareholder requisitioned resolutions
• Meeting management: practical tips on tackling difficult issues arising before, or during, the meeting, including disruption and protests
• What’s on the horizon: the Austin Review and other recommendations

• The Financial Times reports that Billionaire investor Daniel Och targets Sculptor CEO over ‘escalating pay’: “Founder says ex-protégé received $145.8mn last year despite ‘less than mediocre performance’”.
• The Financial Times reports that European chemicals group Solvay declares truce with activist Bluebell: “Companies end long-running battle over waste discharged into the Mediterranean”.
• Reuters reports that Environmental groups ask P&G investors to vote against CEO as board chair: “Environmental groups are asking Procter & Gamble Co (PG.N) investors to vote against re-electing its chief executive as board chair, and also opposing two other directors at the annual meeting next month, according to a filing that claims the company uses too much virgin wood pulp in its paper products.”
• The Financial Times reports that Richemont investors back founder in fight against activist Bluebell: “Johann Rupert handed victory after shareholders reject bid to shake up luxury group’s board and strategy”.
• The Financial Times reports that Activist Nelson Peltz forced to shut London investment company: “US billionaire in role reversal as funds demand he return assets to shareholders”.
• The Wall Street Journal reports that Activist Investor Dan Loeb Backs Off Pushing Disney to Sell ESPN: “Investor says he wants to see Disney move forward with ESPN’s ‘growth and innovation’”.
• The Wall Street Journal reports that Activist Investor Ancora Looks to Oust Kohl’s CEO, Chairman: “Letter to retailer’s board urges changes after sharp drop in profit and scrapping of potential sale”.

• The Financial Times published an opinion piece by Stuart Kirk: ESG must be split in two: “If we do not disentangle the industry’s dual meanings, it will not progress”.
• The Wall Street Journal reports that An Anti-ESG Activist Investor Presses for Changes at Apple and Disney: “Vivek Ramaswamy urges iPhone maker not to do a racial equity audit and wants Disney to refrain from engaging in political discussions.” Additionally, The Economist published a guest essay by Vivek Ramaswamy: Stakeholder capitalism poisons democracy: “Citizens, not corporate chiefs, should tackle social issues, says the entrepreneur and author”. It also published a guest essay with an opposing view: People trust executives to intervene in social issues, says Jeffrey Sonnenfeld: “Company decisions are rarely driven by a boss’s personal positions, the management scholar adds”.
• The Wall Street Journal argues for Breaking Up the ESG Investing Giants: “BlackRock, Vanguard and State Street effectively control each other—and their market competitors. The Clayton Act was made for situations like this.”
• Bloomberg reports on ‘Hating ESG’: Advocates Are Looking to Replace the Label: “A number of sustainable investing champions say it’s time for the “ESG” label to be shelved and replaced by something less likely to draw attacks from both the political right and left. Robert Eccles, a professor who’s spent the past 12 years researching sustainability at Harvard Business School and now University of Oxford’s Said Business School, says the term ‘just doesn’t have value anymore. Let’s change the conversation’.”
• The Financial Times reports that Finance groups risk being kicked out of Mark Carney-led climate coalition: “Independent body will have the power to eject members for not meeting new criteria such as ending coal financing”
• The Financial Times reports that Global scope of EU’s greenwashing crackdown spooks Wall Street: “Wall Street Bankers complain about extraterritorial extent of the new directive on sustainability reporting.”
• The Financial Times reports how ESG activists see executive pay as tool for raising standards: “Payouts are increasingly tied to climate or diversity metrics.”
• Bloomberg reports that the EU Puts Key Plank of ESG Rulebook on Hold Amid Infighting: “Social taxonomy shelved indefinitely, people familiar say; Move may put ‘S’ in ESG off regulatory map till end of decade.”
• The Wall Street Journal reports that Companies Are Buying Large Numbers of Carbon Offsets That Don’t Cut Emissions: “With the boom in renewable energy, many of the credits that trade hands merely represent a transfer of money from one profitable enterprise to another, critics say”
• The Financial Times argues Why BlackRock’s climate challenge is harder than it makes out: “A month after receiving a searing indictment of its approach to climate issues from a group of Republican state attorneys-general, BlackRock finally hit back this week. Far from delivering a knockout punch in this tussle, however, BlackRock’s letter merely underscored the increasingly uncomfortable position it faces along with other members of corporate climate alliances.”
• The Financial Times reports on Don’t let auditors off the hook on climate votes, says asset manager: “As asset managers take a broader approach focused on routine pay and appointment votes, the pivot could put more pressure on auditors and company directors to take climate issues seriously ahead of next year’s voting season. The UK asset manager Sarasin & Partners updated its shareholder voting policy today with tougher criteria that holds auditors and directors accountable for a company’s reporting, auditing and target setting in relation to net zero goals.”
• The Financial Times reports that Biodiversity quickly rises up the ESG investing agenda: “Species loss is now seen as a problem as big as climate change”.
• Reuters reports that HSBC fund arm thermal coal policy to curb climate change: “ HSBC Holdings Plc told Reuters on Thursday it will stop financing the expansion of thermal coal from funds it manages actively with immediate effect, marking an acceleration of a broader commitment it made last year.”
• IR Magazine reports TCFD reporting drives ESG integration in annual reports: “The introduction of mandatory TCFD reporting is helping to boost awareness of climate-related risk and making ESG the thread that runs through annual reports.”
• Institutional Investor asks What Happens When a Company Is a Climate Hero and a Governance Disaster? “In a paper titled “The Hidden ESG Risks of Feel-Good Companies,” Adam Fleck, Morningstar’s director of equity research in ESG, argued that investing in stocks with high impact in areas like clean energy or gender equality doesn’t preclude exposure to ESG risks. The paper is the first report under Morningstar’s new “Investable World” initiative, which aims to provide and analyze data for investors to better understand and engage with sustainable investing practices.”
• ESG Today reports BlackRock Strikes Back Against Climate Activism Claims: “BlackRock has pushed back against allegations from Republican officials that it is pursuing a climate-focused agenda not aligned with its clients’ financial interests. In a letter to 19 state Attorney General, the investment giant argued that the claims are based on “misconceptions,” and that the politicians’ agenda may deprive investors of the ability to pursue compelling investment opportunities and impact their returns.”
• Pensions&Investments reports BlackRock responds to anti-ESG movement, 'disturbed' by trend: “BlackRock defended its policies regarding climate risk in a response to a letter from 19 U.S. state attorneys general, and expressed concern over the politicization of public pension plans. The world's largest money manager released the letter Wednesday from Dalia Blass, senior managing director, head of external affairs, addressed to the 19 Republican attorneys general who had signed an Aug. 4 letter to CEO Laurence D. Fink accusing BlackRock of using "the hard-earned money of our states' citizens to circumvent the best possible return on investment" in its position on energy investments.”
• The Wall Street Journal reports Anti-ESG Activist Investor Urges Chevron to Increase Oil Production: “A conservative activist turned investor who has criticized Wall Street’s efforts to address climate change and other issues is publicly urging Chevron Corp. to pump more fossil fuels over the next decade.”

• The Financial Times reports that BlackRock pushes back against directors serving on too many tech boards: “Asset manager has voted against reappointments in effort to improve corporate governance”.
• The Financial Times reports that EY bosses approve radical break-up of Big Four firm: “Partners will now vote on proposal to split audit from advisory business”.
• The Best Practice Principles Group (BPPG) reported that Proxy voting advisory firms improve disclosures against best practices: “All five of the world’s leading proxy voting advisors have become more transparent about the way they operate, according to an analysis of their second year reporting of compliance against industry Best Practice Principles.”
• The Financial Times reports that EY’s challenge just beginning after leaders sign off on historic split: “Big Four firm will have to persuade audit and consulting partners that a radical shake-up is in their interests”
• The Financial Times reports that EY’s break-up plan raises fears over audit business: “Industry body among those questioning whether quality will suffer from split”.
• Bloomberg reports that Investors Commit $7.1 Trillion of Assets in Pursuit of 1.5°C Climate Goal. “The Net Zero Asset Owner Alliance says 44 of its 74 members are setting 2025 targets in line with the Paris Agreement, up from 29 firms last year.”
• Reuters reports that U.S. bank regulators consider new rules for regional banks in times of crisis, Wall Street Journal reports “A group of bank regulators appointed by U.S President Joe Biden is considering new rules which will require big regional banks to add financial cushions that can be used in times of crisis, the Wall Street Journal reported.”
• ESG Clarity reports that Crypto’s climate issues prompt White House report “ESG investors are more likely to invest in cryptocurrencies despite environmental implications”.
• Gladstone Place Partners posted a piece on the Harvard Law School Forum on Corporate Governance entitled Getting Out the Retail Vote: Targeting Reddit and New Social Tools in Proxy Solicitations: “The success of the get-out-the-vote campaigns for Nikola Corporation and Lucid Group shows that shareholder solicitation is not the same in the age of Robinhood and Reddit. Companies are using new communications strategies and channels to find retail shareholders and obtain their critical votes.”

• The Financial Times reports that Activist investors wage record number of campaigns in Europe: “British companies prove especially vulnerable to restive shareholders.”
• The Financial Times reports that European companies forced to take a closer look at supply chains: “New laws and shortcomings of just-in-time logistics mean businesses pay more attention to due diligence.”
• The Financial Times reports that European banks make slow progress on gender diversity at the top: “Nordic lenders do well but numbers are lower in German and Portuguese banks”.
• S&P Global reports that Some UK, German banks fall short of boardroom gender parity targets. “Women make up more than half of the board at just seven of 30 large European banks, according to data compiled by S&P Global Market Intelligence. Several banks could struggle to meet tougher future regulatory requirements.”

• The Financial Times reports that Pre-emption changes should force modernisation for London: “Aims of capital market review rely on a more fundamental overhaul and digitisation of market infrastructure”.
• The Financial Times reports that The Truss government sends a signal to the City: “Bonus cap was always a misguided policy but there is political cost to scrapping it”.
• The Daily Mail reports that FTSE 100 giant Ashtead cruising for row with shareholders over chief executive Brendan Horgan's £6.6m pay: “A confrontation this week will be its second clash over bosses' rewards in just 12 months. Investors have been advised to vote against the eye-watering package for Brendan Horgan, the plant-hire firm's American chief executive, at tomorrow's annual meeting.”
• The Financial Reporting Council published the list of signatories to UK Stewardship Code: “The Code sets high standards of stewardship for those investing money on behalf of UK savers and pensioners, and the continued growth in the number of applicants and successful signatories shows the value that investors and their clients and beneficiaries in the UK and beyond give to the Code. This supports the findings of the FRC’s recent report on the impact of the Code on the stewardship practice of asset managers and owners.”
• The Financial Times reports that the FCA warns firms on ‘poor’ ESG benchmarking: “Last week the Financial Conduct Authority became the latest global regulator to issue a public warning about ESG benchmarking. The move comes as market regulators remain suspicious of benchmarks following the long-running Libor scandal, and the European Union has floated the idea of its own ESG benchmark (please refer to Kenza’s piece on the topic from earlier this month). Now, the FCA has weighed in as well.”
• The FTAdviser reports how the FCA sounds alarm over ESG benchmarks “The FCA has warned of the risks of ESG benchmarks and will be scrutinising how they are constructed and labelled. In a “Dear CEO” letter released last week (September 8), the FCA’s director of infrastructure and exchanges, Edwin Schooling Latter, said the regulator has concerns over the benchmarks.” The full letter from the FCA can be read here.
• The Financial Times reports that EasyJet shakes up board after difficult summer:  “Chair Stephen Hester says new directors will bring ‘experience and extra focus’ on operations and logistics”.
• The Financial Times reports that UK’s new audit regulator to be based in Birmingham: “Relocation is part of a push to move officials out of the capital”.
• The Times reports on Peter Cowgill: Ousted JD Sports boss stays onside with £5.5m deal: “Peter Cowgill, who will also be eligible for an annual bonus, ran the sports retailer from 2004 until his ousting in May this year after a series of own goals that fuelled City concern over the dual role he had held as executive chairman since 2014.”
• The Financial Times reports that Sanjeev Gupta’s auditor quit after lack of evidence to complete work: “King & King resigned after director rejected proposal to issue disclaimer saying there was ‘insufficient information’ for audits”.
• The Financial Times reports on How women broke into the boardroom: “The 30% Club’s mentoring scheme, aimed at getting more women into board-level positions, is now 10 years old. How much has it achieved?”
• The Financial Times asks Where are all the women in asset management? “An industry that lectures others about diversity is making pathetically slow progress itself”.
• The Financial Times reports that Helena Morrissey quits as AJ Bell chair after FCA blocks board role for founder: “Regulator objects to fund platform’s founder Andy Bell remaining on board having stepped down as chief”.

• Novethic reports that ESG ratings have become financialised at the risk of being lost, analyses Michelle van Weeren in her thesis “La notation ESG s’est financiarisée au risque de se perdre, analyse Michelle van Weeren dans sa these”: “Researcher, Michelle Van Weeren wrote a thesis on the evolution of ESG ratings and the profession of ESG analyst at Paris Dauphine PSL University. She has just received the RIODD-Moody's prize for this work which shows how ESG rating has been transformed to integrate financial analysis models. His in-depth interviews with some forty professionals in the sector enabled him to explain how the ‘financialisation’ of ESG data can be an obstacle to the mobilisation of outstanding funds from sustainable funds to finance the transformation of rated companies.”
• Les Echos reports that Directors call for more diversity on boards “Les administrateurs réclament plus de diversité dans les conseils”: “According to a KPMG study, nearly 8 out of 10 directors say that if they had to recompose their board from scratch, they would make significant (68%) or even radical (11%) changes. They want a wider range of skills and experience.”
• Proxinvest reports on M6: a premature merger premium of €3.6m for Nicolas de Tavernost “M6 : une prime de fusion prématurée de 3,6M€ pour Nicolas de Tavernost”. “By paying an exceptional bonus of €3,581,000 [1]  to the Chairman of the Management Board of M6, Nicolas de Tavernost, in May 2022, the Supervisory Board of M6 showed extreme haste. While the company indicated in its documentation that this exceptional compensation was awarded to reward 35 years of good performance by the group and to compensate for the manager's waiver of his severance pay, it also indicated that this award was decided with a view to the merge”

• The Wall Street Journal reports that Volkswagen’s Bad Governance Could Give Porsche IPO a Racing Start: “German automotive giant’s controlling shareholder will be the biggest buyer of Porsche stock, giving it a reason to underprice the sports-car maker’s listing”.
• Intelligent Investors reports on The case for greater shareholder activism “Für einen stärkeren Aktionärsaktivismus”: “Some general meetings are legendary. Contradiction paves its way and board members are criticized. In this respect, no farewell event. And yet there are clear differences in the design and ultimate exercise of shareholder rights. The editor-in-chief of INTELLIGENT INVESTORS followed up with Oliver Schmidt, Deputy Chief Investment Officer, Metzler Asset Management GmbH, who (together with Ulf Plesmann, Head of Global Equities) recently presented a brief analysis on ‘Commitment as a key driver on the way to climate neutrality’”.
• The Financial Times reports that VW defends timing and structure of Porsche IPO: “Carmaker seeks to reassure investors after concerns about governance and thin size of float”.
• DSW issued a statement titled HELLA GmbH & Co. KGaA: DSW demands preservation and concretisation of shareholder rights in future virtual general meetings “HELLA GmbH & Co. KGaA: DSW fordert Erhalt und Konkretisierung der Aktionärsrechte in zukünftigen virtuellen Hauptversammlungen”: “The invitation to the Annual General Meeting of HELLA GmbH & Co. KGaA, which will take place on 30 September 2022 as an attendance meeting, contains a proposed resolution that is intended to authorise the general partner for the next five years in a blanket manner and thus without concrete specifications to convene the Annual General Meeting as a virtual Annual General Meeting. HELLA is thus one of the first companies to make use of the new option created by the Act on the Introduction of Virtual Annual General Meetings of Public Limited Companies.” Proxinvest’s Chief Governance Officer, Loïc Dessaint, weighed in on the statement here.
• The Financial Times reports on The Wirecard scandal, coming to a screen near you: “Netflix documentary charts the story of how an FT reporter took down a huge German company”.

• The Financial Times reports that the New Italian government will face two familiar business dilemmas: “After national elections, any coalition has to resolve the future of lender Monte dei Paschi di Siena and air carrier ITA”.
• The Financial Times report on Italy under pressure to boost appeal of Milan stock exchange: “Borsa Italiana has lost several high-profile companies this year but says it is working on simplifying its rules”.
• IlSole24Ore reports on Diversity and inclusion, watch out for pinkwashing of quotas “Diversità e inclusione, attenzione alle verniciate di quote rosa”: “Watch out for pinkwashing. The risks of the new phenomenon emerge from Lundquist and Afuture's study of Italy's 50 largest listed and unlisted companies. Countermeasures for "greenwashing" had barely been taken, and here on the horizon is a new phenomenon: pinkwashing.”
• IlSole24Ore reports Intesa Sanpaolo, Carlo Messina is the best Ceo among European banks “Intesa Sanpaolo, Carlo Messina è il miglior Ceo fra le banche d’Europa”: “The manager tops the continental ranking for the fifth consecutive year. Awards also for Del Punta, the Investor Relations team and Delfrate.”
• Milano Finanza reports Borsa S.p.A. simplifies listing rules “Borsa S.p.A. semplifica le regole di quotazione”: “Consob has given the green light to new listing rules on Borsa Italiana (Euronext Group) that will become effective from October 3, 2022, as anticipated by MF-Milano Finanza.”
• EticaNews reports on Bankitalia: esg company, bond costs less “Bankitalia: azienda Esg, il bond costa meno”: “Investigated the correlation between ESG score and financing. Via Nazionale’s research outlines the existence of an ESG premium that favours companies with better sustainable ratings in obtaining cheaper financing. This is due to investors' preference for ESG assets and to risk considerations.”

• The Comisión Nacional del Mercado de Valores (CNMV) publishes its reports on Corporate Governance Reports and Directors’ Remuneration Reports (“La CNMV publica sus informes sobre los informes de gobierno corporativo y de remuneraciones de los consejeros de las sociedades cotizadas 2021”): “Both documents reflect, in an aggregated and summarised form, the main conclusions on both issues that the companies have sent to the CNMV during the year. Among the main highlights: (i) Compliance with the recommendations of the Code of Good Governance was 86.4% in 2021 (83.7% in 2020) and five companies reported 100% compliance. (ii) The presence of women on boards increased by 3 points compared to the previous year, reaching almost 29.3%, almost reaching the recommended level for 2021 (30%). (iii) This year was the first year in which companies had to make comparisons between directors' remuneration, consolidated results and average employee remuneration. Concluding that, remuneration of executive directors, excluding extraordinary items, was on average 32 times the average remuneration of employees of listed companies. These figures show, in any case, a high dispersion between companies.”
• ElEconomista reports that Santander and BBVA are in the top 10 banks in Europe and North America best prepared in ESG business (“Santander y BBVA están en el 'top 10' de bancos de Europa y Norteamérica mejor preparados en negocio ESG”): “This is revealed in the Green Pace report by the global consultancy Alvarez & Marsal (A&M), which has drawn up a ranking of the top 25 banks in these regions. The ranking is led by Natwest Group (the former Royal Bank of Scotland), followed by the UK's Barclays and HSBC. Among the Spanish companies, the ranking also includes CaixaBank, which is in twenty-fifth position.”
• CincoDías reports that The Spanish banks at the tail in incorporating women to executive positions (“La banca española, a la cola en incorporar mujeres a los puestos ejecutivos”): “Spanish banks are among the last positions in the sector in Europe to incorporate women in executive positions. This is reflected in a report prepared by DBRS Morgningstar, in which it analyzes the evolution of the policies applied by financial entities to favor the presence of women in senior positions.”

• Milieudefensie (Friends of the Earth Netherlands) published an Urgent letter to accountants about climate obligations and risks (“Dringende brief aan accountants over klimaatverplichtingen en -risico's”). The letter was sent “to the accounting firms of 29 companies that were earlier targeted by Milieudefensie and included in their  Climatecrisis-Index, i.a. ING, Ahold, Schiphol, BAM Group and Unilever. In the letter accountants were reminded of their responsibility in combating climate change. "Accountants should identify dangerous climate change as a core issue in the audit of financial statements. In doing so, they are obliged to act when large companies take insufficient action against it," said Donald Pols, director of Milieudefensie.”

• The Financial Times report that Norway oil fund warns of ‘danger’ that environment falls down agenda: “Nicolai Tangen calls on investors to stay focused on issue despite slowdown and Republican hostility”.

• The Financial Times reports on Executive pay-for-performance: SEC demands that bosses show receipts: “Boss’s remuneration will be juxtaposed against total shareholder returns of the company and peers in a new table in proxy statements”.
• The Wall Street Journal reports that the Justice Department Targets Executive Pay, Probationary Deals to Curb Corporate Crime: “Deputy Attorney General Lisa Monaco outlines policy changes that push companies to claw back pay from executives involved in wrongdoing and limit use of deals letting businesses avoid criminal charges”.
• The Financial Times reports how J&J tries to extend its ‘Texas two-step’ to halt two states’ talc cases: “New Mexico and Mississippi say consumer company’s strategy is making a ‘mockery’ of bankruptcy law”.
• Reuters reports on how the Showdown over Nasdaq board diversity rule heads to 5th Circuit.
• The Wall Street Journal reports An ESG Champion Stumbles: “The California Public Employees’ Retirement System posts a decade of lackluster returns.”
• The Financial Times reports that Cisco urges shareholders to reject tax transparency proposal: “US tech group will put country-by-country reporting measure to a vote”.
• The Wall Street Journal reports that Nordstrom Adopts Poison Pill After Mexican Retailer Buys Stake: “Operator of Liverpool department stores in Mexico takes 9.9% stake in U.S. chain”.
• Responsible investor reports US Treasurers and comptrollers slam anti-ESG states in sustainability statement: “Officials from New York City, California, Rhode Island, Washington and Oregon are among the signatories.”
• IR Magazine reports on Understanding the impact of the SEC’s amended proxy rules: “New proxy rules introduced by the SEC now require the use of a ‘universal proxy card’ in all non-exempt director election contests, dramatically changing the proxy contest landscape at public companies. Making it significantly easier for shareholders to nominate dissident candidates for election means companies are increasingly likely to face dissident nominations (or nomination threats) from activists known to seek proxy contests, as well as new shareholders for which the barrier to entry has been lowered.”
• Legal Dive reports SEC pay-vs-performance rule called a chance to shape company story: “The stepped-up executive pay disclosure required by the Securities and Exchange Commission (SEC) in a rule it released last week won’t be new to companies that already provide data on pay-to-performance to proxy advisory firms, but it could give them a chance to better control the narrative about how they’re doing, a corporate strategy advisor says.”

• The Wall Street Journal argues that the U.S.-China Audit Deal Is Only Window Dressing: “It may allow companies to stay on the New York Stock Exchange, but their books won’t be rigorously examined.”
• The Financial Times reports KPMG sued for $830mn over ‘appalling’ Chinese audit: “Liquidator of China Medical says Big Four firm failed to ask ‘obvious’ questions”.
• The Financial Times reports that Alibaba and Yum China first in line for audit checks by US regulator: “Accounts to be inspected in Hong Kong as part of landmark deal with Beijing on companies listed overseas Alibaba’s logo is pictured on the New York Stock Exchange trading floor”.
• Insightia reports that China Shenghai CEO nominates 3 directors: Hong Kong-listed seafood company China Shenghai Group will hold a vote on electing three new directors after its chief executive and top shareholder asked it to do so. Precisely Unique, an entity controlled by China Shenghai Joint-Chairman and CEO Liu Rongru, proposed Lin Yiyang and Liu Zhengping as new executive directors as well as Deng Yujia as an independent non-executive board member, according to a statement filed by the company earlier this week.
• Financial Times reports that Naspers confirms move of Tencent shares to Hong Kong clearing system “South Africa’s Naspers internet group has moved a $7.6bn chunk of its stake in Tencent to Hong Kong’s clearing and settlement system in order to smooth future sales of the shares to fund a stock buyback. Naspers, Tencent’s biggest shareholder, said in a statement that it had moved the block of 192mn shares “to enable market trading of such shares, in an orderly way . . . over time”, and that it had sold 1mn of the shares on Thursday, reducing its stake to below 28 per cent. The move comes two months after Prosus, the company’s Amsterdam-listed international investment arm, abandoned its pledge not to sell stock in one of China’s most valuable companies, in order to fund an open-ended buyback to support its own struggling share price. Global investors are cutting their holdings in Chinese technology stocks following a government crackdown and regulatory onslaught that has bruised the sector. The S&P China Tech 50 index, which tracks the 50 largest Chinese companies in the sector, is down 36 per cent over the past 12 months.”

• SCMP reports that PwC Hong Kong, KPMG China are first firms to host US regulator for audit inspections of mainland firms, sources say: PwC Hong Kong and KPMG China are the first accounting firms that will help a US regulator carry out inspections of the audit work of US-listed mainland companies, part of a historic process that aims to head off mass delisting of Chinese companies from US exchanges. The two firms have received notice that the Public Company Accounting Oversight Board (PCAOB) picked them for inspections of several of their audit clients, two sources familiar with the situation told the South China Morning Post.
• Insightia reports that Giordano takeover collapses after activist criticism: “Hong Kong billionaire Henry Cheng has failed in his HK$2.56-billion ($326 million) bid for apparel retailer Giordano International, an offer activist David Webb said was “far below” fair value. Giordano said in a late Tuesday statement that Cheng’s HK$1.88 per share offer was accepted by shareholders owning about 22% of the company. Cheng, who started the tender offer already owning 24.5% of Giordano’s share capital, had targeted a minimum of 50% of the company. The offer carried an 18% premium on Giordano’s unaffected share price but that was not enough for Webb, a retired investment banker turned activist investor. In late June, Webb argued that a formal sale process would yield a better proposal.”
• SCMP reports that Enrolments for ESG courses surge in Hong Kong amid exponential demand for staff with requisite skills. “Providers of environmental, social and governance-related certifications and accreditations have seen rising enrolments for their courses amid “exponential demand” for ESG-related jobs in Hong Kong and Asia, according to headhunters. Registrations for the CFA Institute’s certificate in ESG investing, which familiarises professionals with ESG principles and portfolio management, hit an all-time high in Hong Kong in July. Registrations topped 160, a 77.8 per cent increase compared with 90 in September last year when the course was first rolled out globally, according to the latest figures from the institute. Hong Kong has recorded about 1,100 registrations, accounting for around 8.5 per cent of the 12,800 globally since last September. The city also remained the top market in Asia for registrations, ranking just behind the UK and US globally. “ESG investing is evolving quickly, and will clearly be a key part of the investment future,” said Nick Pollard, managing director for Asia-Pacific at the CFA Institute.”
• SCMP reports that Hong Kong seeks to lure global fintech, ESG talent with cash grants and easy immigration, minister says “The Hong Kong government is seeking to support the fintech and ESG market, according to an «SCMP» interview with Financial Services and the Treasury Christopher Hui Ching-yu. The benefits lined up include HK$10 million ($1.3 million) in fintech proof-of-concept cash subsidies as well as easier immigration for individuals with a bachelor’s degree in ESG and relevant experience, with no local offer required and dependents allowed to join. The government will also dedicate resources toward developing local ESG talent through training. Hong Kong is facing a myriad of challenges as a financial hub including a widening talent gap. The latest benefits are in line with a recent survey by Google that found 64 percent of fintech companies in the city were facing a «severe talent gap» with 80 percent hoping for more supportive policies from the government such as fintech hiring subsidies.”
• Reuters reports that China Vanke unit Onewo to raise $783 million in Hong Kong's largest IPO of 2022. “Developer China Vanke Co Ltd's property services arm has launched Hong Kong's largest initial public offering (IPO) of 2022, aiming to raise up to $783.5 million in a deal that will be a key test for investor appetite. The subsidiary, Onewo Space-Tech Service, has set a price range of HK$47.1 to HK$52.7 a piece in the public offering of 116.74 million of its shares, which represent 10% of the company's share capital, according to a deal term sheet. Vanke, which is China's second-largest property developer by sales and is listed both in Shenzhen and Hong Kong, owns 62.9% of Onewo and is its biggest customer, regulatory filings showed. The deal is likely to reveal how much appetite investors have for buying into the services and management sub-sector associated with China's cash-squeezed real estate market, which has lurched from one crisis to another over the past year. The two largest equity deals in Hong Kong this year - China Tourism Duty Free Corp's $2.1 billion share sale and one by Tianqi Lithium's worth $1.7 billion - were secondary listings. Both firms were already listed in mainland China.”
• SCMP reports that SPACs underwhelm in Hong Kong and Singapore in first year, as listings lapse and applications peter out. “Special-purpose acquisition companies (SPACs) have received a cooler than expected response in both Hong Kong and Singapore, with some launches from early in the year fizzling and few new applications emerging in recent months. Hong Kong, where SPACs launched in December 2021, has seen no new filings in the past two-and-a-half months. The most recent prospectus, that of TechStar Acquisition, was filed on June 24, according to the Hong Kong stock exchange website. Previously, the market saw four applications in January, four in February, two in March, one in April and none in May. In Singapore, no new SPACs have appeared since three such listings emerged in January, after the SPAC listing regime took effect in September 2021. Neither Hong Kong nor Singapore has seen a successful de-SPAC – when the selected company merges with the listed SPAC – this year.”

• The Financial Times reports how Shareholders challenge India’s new crop of listed tech groups: “Companies face increased scrutiny over business models and management styles after Paytm IPO debacle”.

• The Financial Times reports that Insurance brokers walk away from Carmichael coal mine in Australia: “Industry under pressure to step back from projects with the potential to worsen climate change.”
• The Financial Times reports that Australian mining major Fortescue to invest $6.2bn in net zero push: “Billionaire chair Andrew Forrest predicts heavy industries will follow on renewables and hydrogen drive.”
• The Guardian says CEOs of Australia’s top 20 companies given nine times the pay rise of full-time workers: “The incumbent chief executives of Australia’s top 20 companies enjoyed a pay rise averaging 17.16% over the past year, more than nine times the average raise received by ordinary full-time workers, data compiled by Guardian Australia reveals.”
• The Chief Executive Women reports ‘2022 CEW census an urgent wakeup call – CEO gender balance 100 years away: “The progress on women reaching the most senior leadership roles in corporate Australia is going backwards, according to the 2022 Chief Executive Women (CEW) Senior Executive Census, and at this rate it will take 100 years for women to make up at least 40% of all CEO positions on the ASX200.”
• The Renew Economy informs NSW to be first state to regulate CO2 as pollutant under sweeping new proposals: “New South Wales will become Australia’s first state to regulate C02 and other greenhouse gases as pollutants under sweeping new environmental policies, effectively establishing emission cutting targets for industrial polluters and potentially creating a template for broader national policies to combat climate change.”
• The Australian Financial Review reports ANZ urged to push top 100 emitters harder on transition: “ANZ Banking Group said more than half of its 100 biggest emitting customers had either not publicly disclosed plans to transition to net-zero or were just starting to develop their plans as of a year ago, as analysts pushed for updated disclosures about conversations with clients on the transition.”
• The Australian Financial Review informs Billion-dollar blowout looms over bank carbon bills: “The disclosure that Commonwealth Bank’s scope 3 emissions are several times larger than thought highlights the billions of dollars in potential liabilities facing the big four banks.”
• The Australian Financial Review reports Cannon-Brookes ready to repeat AGL-style raids on other polluters:  “Billionaire climate crusader Mike Cannon-Brookes could target more big polluters with weak plans to curb emissions after forcing a strategy overhaul at Australian utility AGL Energy.”
• The Australian Financial Review says IFM boss warns of 40pc slump without climate action: “The chief executive of $200 billion fund manager IFM Investors will turn the screws on Australian airports, ports, roads and hospitals to slash their carbon emissions to avoid a 40 per cent collapse in asset values..”
• ESG Clarity reports PRI pushes Australia for better sustainable finance regulation: “The Principles for Responsible Investment (PRI), UNEP FI and the Generation Foundation are calling on Australian policymakers and regulators to help responsible investors direct capital towards net zero.”
• The Australian reports that Institutional shareholders are likely to claw back shares loaned to short sellers:  “[T]he trend for institutional investors to recall their shares in the month before the shareholder voting period begins has been increasing.”