Across the Board
Who Will Set the Standards for ESG Governance?
As ISSB releases its initial standards, many push for a global baseline
"The ISSB consulted widely before it built its guidance on a number of established voluntary standards including from the Task Force on Climate-Related Financial Disclosures and the Sustainability Accounting Standards Board. It was created to respond to widespread stakeholder demands for more consistent and reliable information about companies’ sustainability plans and performance amid mounting decarbonization promises, regulation and climate change impacts...The still-to-be-finalized Securities and Exchange Commission rules are expected to take a lighter touch than the ISSB. EU rules require more disclosure, particularly for stakeholders beyond investors. Even so, there has been real interest from the U.S. corporate and investor communities for the ISSB standards as a choice that might be voluntarily made, separate from what might be required from a regulatory perspective, said Sue Lloyd, vice chair of the ISSB..A consistent global baseline would also make it easier for companies to estimate and report so-called Scope 3 emissions, defined as those in their value chain…Alignment would also reduce the costs of producing the information. A common language and a common set of definitions are needed to build a good taxonomy that can be translated into a digital taxonomy, lowering compliance cost and making it easier…” WALL STREET JOURNAL (WSJ PRO)
Elliott Investment Management Calls for a New CEO at NRG
NRG is pursuing a “deeply flawed strategy,” firm claims
“The activist investor is demanding that NRG immediately initiate a search for an external CEO and add new directors to its board, according to a public letter Tuesday…Elliott has criticized the company’s leadership and strategy, especially its $2.8 billion acquisition in March of home technology provider Vivint Smart Home Inc…Elliott has called the Vivint acquisition the 'worst deal of the decade.' The investor said in the letter that the strategy it is pushing could ‘create more than $5 billion of value at NRG.’” BLOOMBERG
Prominent Investor and Board Director James Crown Dies in Car Crash
Crown was Chairman of the Aspen Institute, held seats at General Dynamics, Sara Lee, and J.P. Morgan
“Crown, 70, died in a single car accident at the Aspen Motorsports Park on Sunday, according to the local coroner…Crown was part of a wealthy Chicago family, the grandson of an industrialist and investor. He had taken over running the family’s investment firm named after his grandfather, Henry Crown, which invests in public and private companies and real estate. He had been a member of the board of General Dynamics, which acquired his grandfather’s company, since 1987 and joined the board of Chicago-based Bank One in 1991…At Bank One, he helped hire Jamie Dimon as chief executive. A few years later, they sold Bank One to JPMorgan in a 2004 merger. Crown remained the biggest individual holder of stock on JPMorgan’s board…Dimon told his board he was in ‘shock and mourning.’” WALL STREET JOURNAL
Report: 80 Percent of Google’s Video Ad Placements Violate the Company’s Own Standards
Google Video Partners say the alleged violation is a huge breach of trust
“Google charges a premium, promising that the ads it places will run on high-quality sites, before the page’s main video content, with the audio on, and that brands will only pay for ads that aren’t skipped. Google violates those standards about 80% of the time, according to research from Adalytics, a company that helps brands analyze where their ads appear online.…Among the major brands whose Google video-ad placements weren’t in line with the promised standards were Johnson & Johnson, American Express, Samsung, Sephora, Macy’s, Disney+…In a statement, Google said the report 'makes many claims that are inaccurate and doesn’t reflect how we keep advertisers safe.'” THE WALL STREET JOURNAL
Nine Mistakes Your Board Should Avoid when Transitioning CEOs
The information your board needs in order to avoid a CEO transition nightmare
“Transitioning CEOs is a complex process and is often fraught with business and legal challenges. Boards of directors must navigate a web of contractual obligations, corporate governance requirements, reporting standards, as well as communications with shareholders, employees and other stakeholders…Boards must account for contractually- and legally-mandated notice periods, carefully consider when to inform the outgoing CEO and mobilize and communicate with the internal team. They also have to determine whether there are any notice obligations or other timing considerations relating to the incoming CEO.” HARVARD LAW SCHOOL FORUM ON CORPORATE GOVERNANCE
How to Harness the Benefits of Corporate Diversity
While U.S. companies are making strides in diversity hiring, retaining that talent has proven difficult
“...corporate directors, academics and other governance experts are calling for companies to focus more on retaining and nurturing the people they hire. Among the components of DEI – diversity, equity and inclusion – they argue a focus on the latter two themes is crucial to make diversity more than just a box-checking exercise and necessary to reap its benefits…there is mounting evidence that companies that score high on DEI metrics also perform better financially…more focus was being placed on equity – or fair treatment of employees to create a level playing field – and inclusion as some companies were finally embracing the idea that ‘you need D, E, I to work in tandem to truly get the advantages of having a diverse organization.’” REUTERS
