The week in investor relations: Mandated climate reporting and an activist victory
– UK companies will need to improve their climate reporting from January, said the Financial Conduct Authority, reported Reuters. From next year, premium listed companies will need to comply with recommendations from the Task Force on Climate-related Financial Disclosures (TCFD) or explain why not. The UK finance minister, Rishi Sunak, separately said TCFD reporting will become mandatory by 2025.
– Unibail-Rodamco-Westfield, the European shopping center owner, saw a $3.5 bn rights issue voted down by shareholders after the intervention of activists, according to the Times (paywall). The vote ‘fell narrowly short of the required two-thirds majority’ required, noted the article. The activists have called instead for a sale of US assets.
– Despite investor pressure over climate change, companies are not on track to meet the goals of the Paris Agreement, reported the Financial Times (paywall). Research by J Safra Sarasin, a Swiss bank, finds that companies globally are heading for a 4-degree rise. The Paris Agreement is targeting a rise well below 2 degrees.
– Global equities, as measured by the MSCI All-Country World Index, hit a new intraday record this week following the declaration of victory by Joe Biden in the US presidential election and positive news about a coronavirus vaccine, noted Bloomberg. The gains added to an 8 percent rally in the week of the election.
– Six asset managers have launched the 30% Club France, with a target of seeing women make up 30 percent of executive management teams at major French companies by 2025, reported Pensions & Investments. The investment firms are Amundi, AXA Investment Managers, La Banque Postale Asset Management, Mirova, Ostrum Asset Management and Sycomore Asset Management.
– A new order from US President Donald Trump will prevent US investors from holding stakes in Chinese companies deemed to have ties to that country’s military, according to the BBC. The list includes major tech and construction companies. The order will come into effect in January and investors have a year to abide by the rules.