Corporate Governance in Integrated Reporting: Do we have a power failure?
Corporate governance was again frontpage news in November 2018 as Carlos Ghosn, head of the Renault-Nissan-Mitsubishi Motors auto alliance was arrested by Japanese authorities on suspicion of underreporting his income by half over the last five years. It highlights ongoing corporate governance challenges among corporations in Japan, including lack of independent oversight for executive pay. The Nissan case illustrates failure of corporate safeguards and internal control, at a company that lacked committees for audit, nominations and remuneration.
Climate-related financial disclosures: Task Force seeks to nudge-rock the system
On 29 June 2017 the FSB Taskforce on Climate-related Financial Disclosures (FSB-TCFD) published its final Recommendations, on the eve of the 2017 G20 Summit in Germany. The recommendations build on climate-related guidance from various voluntary initiatives and standards developed since the 2000s. The Recommendations are voluntary, yet have been defined in a standardised and conservative way so as to be easily taken up by regulators for introduction at national level.
As shareholder primacy gets dethroned, will executives lose focus?
Wouldn’t it be wonderful if we lived in a world where everything is not presented in simplistic polar oppositions? For example assuming that not prioritising shareholders implies prioritising the whole world, that all shareholders are the same and opposed to the sustainability world, that assessing financial impacts implies excluding sustainability impacts, and that the enterprise communicates through either a financial report or a sustainability report.