VC John’s Post

In the final article in our Q1 Public Engagement Report, Haonan Wu assesses whether we are seeing genuine corporate governance improvements in Asia as regulators grapple with reforms. #corpgov #ESG #stewardship #sustainability #boardeffectiveness #diversity #DEI https://bit.ly/4be3kQw

Last year KPMG launched its ESG Assurance Maturity Index to help inform companies, investors and wider stakeholders on the current ESG landscape. So, how are they doing now? Read the latest report ‘The journey continues: Navigating the road to readiness’ to find out: https://lnkd.in/gDV7VVgz

Our recent analysis of corporate governance standards across Europe and Asia highlights a growing convergence, driven by globalization. While each region faces its own set of challenges and opportunities, a shared commitment to enhancing governance practices is reshaping the corporate landscape. Are regulatory frameworks more stringent in Europe or Asia? What are the overlapping trends across these regions, and what do they mean for the future of governance? Where is shareholder activism gaining more traction? Discover the answers to these questions and more in our latest report, which delves into key trends in corporate governance, sustainability, M&A, and activism across European and Asian markets. Access the 2024 European and Asian Corporate Governance Season Review by S&P Global Market Intelligence here: https://lnkd.in/ev7Wv5gx Authors: Evdokia (Eva) Petrakopoulou, Benoît Belliat, Thomas von Oehsen, Sara Abbasi, Atsushi Matsunaga, Erh-Yueh (Charlene) Chen, Braedon Lehman, Paula Graullera Castillejos, Reza Eftekhari, Nanase Yamaguchi, Sice Cheng #corporategovernance #proxyvoting #annualgeneralmeeting #ESG

In recent years, sustainability and the Sustainable Development Goals (SDGs) have become increasingly important in the private sector. Organizations are now expected to engage with these themes, whether motivated by financial benefits or regulatory requirements. Given the issue of asymmetric information, stakeholders can only truly grasp a company’s commitment to environmental, social, and governance (ESG) goals through their annual reports. Recognizing this, the Securities Commission Malaysia introduced the Sustainability Statement in 2015, mandating that all public-listed companies (PLCs) include economic, environmental, and social (EES) disclosures in addition to their standard reporting. This means that, along with financial and corporate governance disclosures, PLCs are now required to provide annual reports on their EESG commitments. Despite these advancements, there remains a limited understanding of how boardroom dynamics impact corporate ESG disclosure practices. I'm thrilled to share my latest publication in Business Performance Review: "Beyond Boardroom Diversity and Environmental, Social, and Governance Transparency: Evidence from Emerging Market Firms." This article provides an in-depth analysis of how board characteristics—such as expertise and diversity—can greatly influence ESG disclosure practices. Whether you’re a policymaker, corporate leader, or researcher, this study offers valuable insights and practical strategies to enhance transparency and promote sustainability in emerging markets. Explore how governance dynamics are shaping the future of responsible business! Dive into the full study to learn more! #Sustainability #ESG #CorporateGovernance #EmergingMarkets #Research https://lnkd.in/grWCaRKK

The "G" in ESG stands for Governance, Governance is a corporation's responsibility to its shareholders  The governance activities  include transparency in decision making, diversity in the composition of the board of directors of the corporation, fairness in executive compensation, and controls to ensure ethical business practices.  Good governance in  large corporations starts with the board of directors. The large and diverse set of shareholders elect the individuals, the directors, who will act on their behalf. It is this collected board of directors who select the professional managers who run the company on a day to day basis. Inside a company that has good governance, there is an organizational structure with checks and balances to make it difficult for rogue executives and employees to do things that no one else knows about. In a good governance environment, an important subset of the members of the board of directors is comprised of independent outside directors. That's members of the board who are not executives in the company. Transparent organizational structure and strong independent members of the board of directors. These reflect a supportive tone at the top that encourages everyone in the organization to take proper governance seriously. Just finished the course “Corporate Finance: Environmental, Social, and Governance (ESG)” by Earl Stice and Jim Stice! Check it out: https://lnkd.in/dcpBHrhy #corporatefinance #environmentalsocialandgovernance.

Another interesting ESG piece by Lucy Floydd in The Lawyer. I've advocated for some time that lawyers can and should get more involved in sustainability and it's great to read GC accounts of enhanced legal team engagement, standing and impact (it is also somewhat reassuring that I wasn't barking up the wrong tree a few years ago)! However, I'm genuinely not sure how I feel about GCs acquiring (whether or not voluntarily) primary responsibility for their organisations' ESG programmes. I am sure that those in this position are doing a brilliant job, although I recognise my bias. I have, broadly, three concerns: - the potential framing of ESG as a risk instead of a pervasive business opportunity, which may constrain creativity; - linked to this, that ESG will be viewed as an exercise in compliance with soft and hard law, which may constrain ambition; and - the multiple GC hats problem, which - aside from the impact on time (and wellbeing?) - may constrain GC independence and the ability to provide dispassionate guidance to the executive and board. I'd welcome others' views on this.

I just read the latest factors shaping the landscape for EY, Europe and beyond. If you are interested, you may follow the link for updates. This edition's highlights include: 🧭 EY Summer Reception 2024: Amid global competition for #investment, what more can Europe do? 🗝️ Bridging Brussels to global #boardrooms: insights on corporate governance and #CS3D readiness 👨🏻🌾 Navigating a new era: #RegenerativeAgriculture and food security in Europe ⚙️ 5 global trends impacting Europe’s #AdvancedManufacturing: challenges & opportunities #EY #Policy

In a compelling conversation with @CharlieKing for @SustainabilityMag, my colleague @Brian Tomlinson explored the complexities of the Corporate Sustainability Reporting Directive (CSRD), the new EU regulation. He highlighted its broad impact on EU and non-EU businesses, offering strategies for effective compliance.   EU-based companies and those with significant EU operations may find the CSRD's reach extending to non-EU activities, prompting some US firms to adopt CSRD reporting at the global level. This unified approach is strategically and practically beneficial, preventing fragmented ESG narratives and the complexity of multiple reports across EU states.   Tomlinson recommends the leaders struggling with CSRD within their organisations that they should allocate sufficient resources and staff to manage the extensive standards, processes, and assurance required for CSRD, ensuring cross-functional collaboration among stretched sustainability and controllership teams. Another suggestion is to increase awareness among leadership, emphasizing the comprehensive nature of disclosures and their strategic implications for the organization.   Delve into the article for more insights on CSRD reporting.   https://lnkd.in/gMgyfCBV   #CSRD #EURegulation #EY

Good corporate governance involves practices and policies that ensure a company operates transparently, ethically, and in the best interest of its stakeholders. It is central to being a responsible business and David R. Blackburn Chartered CCIPD CCMI will be exploring this topic tomorrow as part of the University of Aberdeen's Business School ongoing series #ESG #Governance #AberdeenAlumni

SUSTAINABILITY PERFORMANCE OF FIRMS IN THE EMERGING ECONOMY: THE ROLE OF CORPORATE GOVERNANCE AND CORPORATE STRATEGY The editorial team of the journal Corporate Governance and Sustainability Review is glad to share one of the papers recently published in the journal. This study examines the direct influence of #corporategovernance on #sustainabilityperformance, as well as through #corporatestrategy (CSTR) as a mediating variable. A panel data mediation methodology based on a series of panel data #regressionanalyses was conducted using data from 126 listed #nonfinancialfirms over the 2012–2021 period. The study finds that corporate governance has a positive and significant contribution to sustainability performance. Furthermore, this study demonstrates that corporate strategy acts as a mediator that influences the link between corporate governance and sustainability performance. You are welcome to read/download the full paper at the following link: https://lnkd.in/eExe_uAT Our team extends many thanks to Peter Kwarteng, kingsley opoku Appiah, and JOSEPH AGANA (PhD, CA) for their valuable contribution to the journal. Collins G. Ntim (PhD, CPA), Solomon George Zori PhD, (ACCA), Ernest Gyapong (Ph.D, CPA, FHEA), Klenam Ledi, Salomey Osei Addo, Ps. Dr. Michael Yeboah, JOHN KWAKU MENSAH MAWUTOR, Enya Besa Ameza-Xemalordzo, Samuel N.Y Simpson, Ph.D