Aviva issues warning on climate goals
It’s that time of year when investors offer warnings to company boards. This week it was the turn of Aviva to let the corporate world know it will vote against directors if their company fails to meet climate goals.
Aviva, which has more than £300bn under management, will write to 1,500 boards in 30 countries issuing the climate warning. The Times reports that the letter says Aviva will “hold boards and individual director accountable” where change on climate issues does not respond to the “urgency required”.
The FRC needs YOU
The UK’s governance regulator is on the hunt for new members of its stakeholder insight group. This is a new panel created to offer the FRC views of stakeholders, including boards, audit committee chairs, standard setters and “civil society groups”.
The group will be expected to offer views on emerging risks in accounting, reporting, auditing and governance and provide advice on policy development.
Unilever stalwart fights back
Paul Polman, the revered former chief executive of Unilever has hit back at recent criticism that the company has sacrificed performance as it focused on sustainability, or has become “woke” according to some commentators, and involved in politics.
Writing in the Financial Times, Polman argues: “For healthy democracy it’s far better that our corporate leaders openly set out their stalls than quietly bankroll politicians, trade associations and media outlets to do their bidding for them.” He adds: “Economically, evidence is stacking up to show the financial benefits to companies that consistently apply their principles and actively work to solve societal problems.”
AI issues in Asia
Coverage of artificial intelligence issues in company reporting in Singapore, Hong Kong and India has not been given adequate coverage, according to academics probing the impact of the technology on corporate governance.
In an article for the University of Oxford governance blog, the researchers say that “specific disclosure mandates will be required” if reporting about AI is to match current reporting practices on sustainability reporting.
UK companies lead on ESG
The strength of UK companies on ESG (environmental, social and governance) factors have contributed to rising confidence in UK financial services, according to a survey by professional services firm EY.
The results reveal that 87% of financial services firms plan to “establish or extend” operations in the UK, and 87% also said the UK offers the “right environment for ESG investment”.