Australian Treasurer Proposes New Laws That Could Hinder Woke Corporate Policy
The federal government is considering new laws that could stymie the advent of “woke” corporate policy among Australia’s biggest businesses.
On Friday, Treasurer Josh Frydenberg announced consultations around possible new laws modelled on U.S. and UK legislation that will force shareholder proxy firms to be more transparent with their decision-making process.
Proxy firms work for major shareholders (superannuation funds and institutions) who own stakes in publicly listed companies.
The proxy firm carries out research and provide recommendations to shareholders on how to vote on matters at upcoming meetings, including environmental, social, and governance issues.
Proxy reforms would hurt investors
The governmentâs proposed crackdown on proxy advisers would harm the provision of independent research that makes markets function better.Â
May 3, 2021 â 12.00am
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The governmentâs proposed regulatory crackdown on proxy advisers is an illogical and unnecessary blow to investor rights. Which makes you wonder how, at a time the country is on a âwar footingâ against the pandemic, these so-called reforms could reach the top of the to-do list.
Surely it has nothing to do with the fact proxy adviser Ownership Matters (OM) has been charting the wastage involved in the governmentâs JobKeeper program, or the Australian Council of Superannuation Investors (ACSI) forthright stance on listed companies doing more than the government on climate change? That would be petty.
Retirement Funds Bring Climate Change Pressure on Australia’s 200 Biggest Companies
Company directors deemed to be “moving too slowly” on climate change will face increased pressure from Australia’s largest retirement funds.
The Australian Council of Superannuation Investors (ACSI), comprised of 37 superannuation companies, will recommend members vote against the re-election of directors deemed to have fallen short on addressing climate change.
ACSI will be communicating with the boards of the ASX200, Australia’s 200 largest publicly listed companies.
The move also comes following the release of the book, “The Dictatorship of Woke Capital: How Political Correctness Captured Big Business,” which details how social justice causes now permeate the corporate sector.
27 April 2021
Later this week, shareholders in Glencore will vote on the company’s climate transition plan, otherwise known as a ‘Say on Climate’.
Glencore joins just a handful of other companies, including oil majors Royal Dutch Shell and Total, in giving its shareholders a vote this year.
In all likelihood, shareholders will vote in favour of Glencore’s climate strategy. It is an awkward situation: the first Say on Climate vote for a globally material emitter will likely rubber stamp plans for at least nine new or expanded coal mines in NSW and Queensland.
Glencore’s coal expansionism
Glencore, the world’s largest coal producer, placated climate-conscious investors in early 2019 by announcing a “cap” on coal production. It committed to limiting coal production to its 2019 production levels of 145 million tonnes per annum.