World Economic Forum’s Climate Governance Initiative – Climate Governance on Corporate Boards

As market players begin to pay greater attention to the impacts of climate change on businesses, many international organizations are publishing an array of frameworks, principles and guidelines to help companies and boards who wish to incorporate climate risk into their decision-making.

Among the most prominent, the World Economic Forum has established a Climate Governance Initiative and published a related set of eight guiding principles (Climate Governance Principles) to help foster effective climate governance on corporate boards.
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ISS Releases 2021 U.S. Proxy Voting Guidelines Today and other Upcoming Key Dates for ISS and Glass Lewis

ISS and Glass Lewis (GL) have publicly shared some key upcoming dates for the 2021 proxy season. Below is a list of dates the firms have provided and, based on the most recent year(s), our estimated release dates for other frequently-used proxy advisor publications. Unless specified otherwise, the updated policies listed below will be posted on the ISS website or GL website.
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TCFD Releases Third Status Report on the Adoption of Its Climate-Related Disclosure Recommendations

Yesterday, the FSB’s Task Force on Climate-related Financial Disclosures, commonly referred to as the TCFD, issued its third status report describing companies’ progress in aligning with the TCFD recommendations. While the TCFD has observed great momentum in the global adoption and support of its recommendations since its last status report in June 2019, it states progress is still needed.
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G&A Finds Sustainability Reporting Increases for Russell 1000 Companies

On October 26, 2020, the Governance & Accountability Institute, Inc., or G&A, released a report on the sustainability reporting trends by Russell 1000 companies. The G&A report presents the Russell 1000 companies’ rate of (1) non-reporting on a sector basis; (2) utilizing, referencing or aligning selected standards or sustainability goals; (3) responding to a selected climate-related questionnaire; and (4) utilizing external assurances.
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ISS Releases Preliminary FAQs on U.S. Compensation Policies and the COVID-19 Pandemic

On October 15, 2020, ISS released a series of preliminary FAQs on its approach to analyzing pay decisions relating to the COVID-19 pandemic. These FAQs provide general guidance on how ISS Research may approach COVID-related pay decisions in the context of ISS’ pay-for-performance qualitative evaluation. ISS makes clear that the responses to the FAQs should not be construed as a guarantee as to how ISS will consider any particular situation.
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ISS Proposes 2021 Benchmark Voting Policy Changes

On October 14, 2020, ISS released its proposed voting policy changes for 2021. The changes for the United States focus mainly in these three areas: (1) racial and ethnic board diversity, (2) board oversight of environmental, climate and social risks and (3) exclusive forum provisions.

ISS requests feedback on the proposed changes. Market participants can submit comments via email to policy@issgovernance.com
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Glass Lewis Shares Recommendation Rates for 2020 Proposals

On October 8, 2020, Glass Lewis (GL) released reports providing its overview of the 2020 proxy season. These reports cover selected shareholder vote results and trends, market and regulatory developments, and whether GL was supportive of proposals on various topics submitted to shareholder votes during the 2020 proxy season. On a selected basis, the reports also provide GL’s rationale for its 2020 voting recommendations on company-specific proposals.
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World Economic Forum Releases ESG Reporting Metrics and Disclosure Standards

On September 22, 2020, the World Economic Forum (WEF), through its International Business Council (IBC), recommended common standards to aid all companies around the globe, regardless of industry, in their sustainable value creation. The IBC invites all its members, which includes numerous large corporations, to declare their intention to report on these common standards, and encourages the wider corporate community to join them.
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SEC Asset Management Advisory Committee Provides Updates on Diversity and Inclusion Research and Recommendations

On September 16, 2020, the SEC’s Asset Management Advisory Committee, or AMAC, hosted a webcast to further discuss diversity and inclusion issues in the asset management industry initially addressed at its last meeting on July 16, 2020.  AMAC has held these meetings to provide incremental updates on its efforts to prepare and deliver to the SEC final recommendations on improving D&I in the asset management industry.  
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ISS Releases 2020 Benchmark Policy Survey Results

On September 25, 2020, ISS announced the results of its annual Global Benchmark Policy Survey.  ISS, as in prior years, based its results on the survey responses of investors, public company executives, and company advisors. ISS will use these results to inform its policies for shareholder meetings occurring on or after February 1, 2021. ISS plans to request comments on its draft policies scheduled for release in October 2020, and publish its final policies in mid-November 2020.
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