February 23, 2023 | Editor: Martin Wennerström
SEC considers changes to climate disclosure rules
The U.S. SEC is reportedly considering easing a set of proposed rules, released in March 2022, which would have required public companies to make disclosures about their greenhouse gas emissions (“GHG”), climate-related financial metrics, and climate-related risks. Two features of the proposals that have drawn criticism are a rule requiring companies to report climate costs that meet or exceed 1% of a financial statement line item and the requirement to report Scope 3 GHG emissions generated by a company's vendors and supply chain. Several firms have opposed the proposals, arguing that the disclosure requirements would result in increased compliance costs and administrative burdens. Additionally, critics claim the rules require disclosures that are not material to investors’ decisions and question the ability to provide accurate information. The SEC expects to finalize the regulation in Q2 2023.
ESG Today | CNBC | Lexology | SEC (1) | SEC (2) |
Glencore pays out USD 7.1 billion after record profit
Glencore Plc has announced that it will return USD 7.1 billion to shareholders after posting record profits powered by its coal and trading divisions. The payout includes a supplementary USD 500 million payment and a USD 1.5 billion share buyback. The company’s core profit jumped 60% to a record USD 34.1 billion in 2022, of which USD 17.9 billion came from coal production. The Swiss miner's trading division also reported record profits of USD 6.4 billion, a 73% increase over the previous year. While most of its rivals moved away from the world's dirtiest fossil fuel, Glencore’s decision to keep mining coal paid off massively as coal use hit a record high last year.
Bloomberg | Morningstar | Reuters |
Atos in talks to sell nearly 30% of cybersecurity unit
Atos has received an indicative offer from aerospace giant Airbus to acquire a minority stake of 29.9% in its planned spinoff company Evidian, as part of a long-term strategic and technological partnership. Last September, the French IT company rejected an unsolicited USD 4.12 billion offer to buy the same business from tech consultancy Onepoint and British private equity fund ICG. Neither Atos nor Airbus revealed how much the aeronautical group was willing to pay for the nearly 30% stake in the cybersecurity unit. Atos said it would conduct a due diligence process and does not plan to grant exclusivity to Airbus.
Reuters | Atos | Bloomberg | MW | Yahoo |
Reddit eyes IPO in second half of 2023
Social media platform Reddit is reportedly resuming plans to go public in H2 2023, albeit at a reduced valuation. In December 2021, Reddit filed for a USD 15 billion IPO after interest in the social media platform surged in the wake of that year's “meme stock” frenzy. However, volatile markets, inflation, rising interest rates, and a downturn in tech stocks all thwarted Reddit’s IPO ambitions in 2022. The San Francisco-based firm, which was recently valued at USD 6.6 billion, declined to comment on its plans. Other tech companies are said to be readying an IPO this year, including grocery delivery firm Instacart.
Business Insider | Reuters | The Information |
Recent Content
Governance in Brief – June 8, 2023
European Parliament approves CSDDD The European Parliament has approved the “Corporate Sustainability Due Diligence Directive.” Under the new rules, companies will be required to identify and address the negative impact of their activities and value chains on human rights and the environment. Additionally, companies will need to implement climate transition plans, and, in the case of companies with more than 1,000 employees, tie directors' variable compensation to target achievement.
Governance in Brief – June 1, 2023
Citigroup to IPO Banamex after Mexican gov’t interventions hamper sales deal Citigroup has announced a plan to spin off its Mexican business, Banamex, after a failure to sell the unit to conglomerate Grupo Mexico. Citigroup had been in talks with German Larrea, CEO and Chairman of Grupo Mexico, for over a year in an attempt to orchestrate the sale of the bank, which was first announced at the start of 2022.
Governance in Brief – May 25, 2023
Activist investor pushes for leadership and strategy changes at NRG Energy Activist investor Elliott Investment Management has disclosed a 13% stake in the US-based NRG Energy and called for leadership and operational changes at the company to remedy its “meaningful underperformance.” The investor urged NRG to add independent directors with experience in the power and energy sector to its board, noting that it has already identified five executives to guide the operational and strategic changes.