North American company shareholders overwhelmingly vote down anti-sustainability resolutions: Harvard Law School

A study conducted by the Harvard Law School Forum on Corporate Governance has found that shareholders in North American companies have overwhelmingly declined to support anti-ESG resolutions, despite an increase in motions proposed at annual general meetings so far this year. Proposals relating to disclosure of greenhouse gas emissions and companies' decarbonisation plans received greater support from shareholders at smaller companies.

Best source: Harvard Law School Forum on Corporate Governance

Lack of sufficient board capabilities can be source of problems at big banks such as Credit Suisse: think-tank

The near-collapse of Credit Suisse last year has demonstrated how inadequate board supervision can lead to management problems at big European banks, according to a report from the London-based think-tank Centre for Economic Policy Research. Appointments to the Credit Suisse board in 2015, researchers say, included experts in unrelated fields who lacked the ability to supervise the bank's extensive operations properly, although Swiss regulator Finma approved all senior appointments at the bank. The report also argues that German regulator BaFin was reluctant to enforce the requirements of 2009 national legislation on board members' capabilities, resulting in the law having little practical effect.

Best source: Centre for Economic Policy Research

Backers of new Texas Stock Exchange raise $120m in bid to challenge NYSE and Nasdaq

A new national stock exchange based in Texas and backed by BlackRock and Citadel Securities has raised $120m in a bid to challenge the New York Stock Exchange and Nasdaq, believing that it can enjoy a competitive advantage because of costs at the two New York-headquartered trading platforms. The exchange, which has appointed James Lee as CEO and plans to register with the Securities and Exchange Commission this year, is being established in response to increased compliance costs as well as rules seen as burdensome, such as Nasdaq's targets for board of directors diversity. Texas has become the headquarters of more Fortune 500 companies than any other state.

Best source: Wall Street Journal (subscription required)

See also: Bloomberg

Riot Platforms criticises Bitfarms over poison pill response to takeover offer

US bitcoin mining firm Riot Platforms has attacked rival Bitfarms for preparing a so-called poison pill defence to Riot's unsolicited takeover offer, worth nearly $1bn. Bitfarms has rejected the offer made in April and claims it represents an undervaluation, while Riot has urged Bitfarms shareholders to remove its chairman and interim CEO, Nicolas Bonta, and to appoint at least two independent directors to the board. If adopted, the poison pill strategy would see Bitfarms issue fresh equity to other shareholders in the event that Riot acquires a stake in the business exceeding 15%.

Best source: The Block

Morningstar Sustainalytics upgrades ESG risk rating methodology for 16,000 companies

Morningstar Sustainalytics has upgraded its ESG risk ratings methodology that covers over 16,000 companies worldwide. It has improved the process for corporate governance assessment, making it easier to use and interpret data on issues such as board independence and shareholder voting structures. The ESG data provider is also boosting its material risk measures to include raw material usage, water, data privacy and cyber-security. The process of incorporating the new metrics for all companies covered by Sustainalytics will be complete by September.

Best source: Morningstar Sustainalytics

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