Environmental efforts may yield crop of future corporate leaders

Going green continues to rise as a goal of companies looking to address environmental issues in a genuine way that improves their reputations with the public and consumers. Recent reports in USA Today provide evidence of an additional benefit of environmental initiatives – they can make the grass look greener to today’s top college graduates who are demonstrating in their college choices that sustainability counts.

USA Today reported that universities and colleges are putting on the green to attract students who are serious about environmental issues. Mark Orlowski, founder and executive director of the Massachusetts-based Sustainable Endowments Institute, told the newspaper that the trend is growing at schools large and small “as a way of attracting the best students possible.” According to the Institute’s 2010 College Sustainability Report Card, 69 percent of colleges and universities were incorporating a sustainability message during the admissions and student orientation processes.

See full Press Release.

CalSTRS Reports Corporate Governance Success in 2010 Proxy Season

Shareholder Proposals Result in Progressive Changes Benefiting Companies’ Performance and Value

The California State Teachers’ Retirement System (CalSTRS) withdrew 21 of 28 shareholder proposals filed during the 2010 proxy season after successfully engaging companies to make corporate governance changes.

“If engagement leads to substantial progress on the issue, we withdraw the proposal.”
As the lead or co-filer of the proposals, CalSTRS sought poison pill certification by shareholders, declassification of the board of directors, increased board diversity, the appointment of independent board chairs, and sustainability reports on environmental, social and governance (ESG) issues. In the majority of cases, CalSTRS engagement efforts resulted in progress on corporate governance matters and improved corporate performance.

See full Press Release.

Ecuador: animales emblemáticos en riesgo

Al menos ocho especies animales emblemáticas de Ecuador, como el cóndor andino, el oso de anteojos y el albatros de Galápagos, se encuentran en peligro de desaparecer.

La lista la completan el águila arpía, el tapir, el pingüino de Galápagos, el caimán de la Costa y el papagayo de Guayaquil. Se trata de especies amenazadas en torno de las cuales al momento se ejecutan planes de acción y estrategias de conservación reconocidas en el nivel oficial.

"Los ecuatorianos nos identificamos con estas especies. Son parte de nuestra cultura y cosmovisión.

Ver Artículo completo.

The Climate Agenda

The Obama administration sided with major utility companies in a Supreme Court case about climate change on Thursday, angering environmentalists who say that the administration's broad argument could hurt their ability to force reductions in greenhouse gas emissions or even to bring other lawsuits.

See full Article.

SEC “Proxy-Access” Rule Won’t Really Help Shareholders Manage Big Companies

AIG chairman Robert Miller worries that the SEC’s new “proxy access” rule allowing shareholders to nominate corporate directors at public companies will cause “people with narrow-interest agendas” to seek a place on the board, “eroding” the firms’ competitiveness. I can think of something else that might erode a company’s competitiveness.

The idea that giving investors more say over corporate governance will allow “special interests” to hog-tie management and pursue their agenda, to the detriment of other shareholders, is silly. Here’s why: Any board candidate, whether backed by shareholders or the company, will still require majority support to get elected.

See full Article.

Emerging Solar PV Markets and Strategis: 2010-2025

The Europe solar photovoltaic (PV) market has undergone significant changes in the last 18 months—underpinned by regulatory revisions, economic crisis, and technology oversupply. As a result, the 2010‐2012 period is shaping up to be one of significant transformation as PV companies navigate this volatile market toward 100 GW of total installed capacity by 2025.

While European PV growth in 2009 was driven by Germany’s 3.8 GW of additions, going forward PV market growth is shifting to new capacity additions in southern and central Europe. The market’s broadening outside of Germany is scaling up competition among a growing number of global utilities, IPPs, and developers seeking to capture PV opportunities in rooftop, ground‐based, and building‐integrated PV markets.

See full Summary, in pdf format.

Can Africa continue to grow?

A panel of regional business leaders discusses its prospects.

Gross corruption, constant wars, and irrational economics long made Africa a poor, troubled continent where natural-resource companies were almost the only multinationals that dared or cared to do business. But in the 1990s, the picture improved. The wars started subsiding. Many governments balanced their budgets and created a better, safer environment for companies, both foreign and domestic. And the African consumer began to stir. Now 80 million households earn at least the equivalent of $5,000 annually, the point where discretionary spending commences—an increase of 80 percent in eight years. Meanwhile, the continent’s GDP has been rising steadily, at around 5 percent a year, for the past decade, reaching $1.6 trillion in 2008. Last year, Africa was one of just two regions (the other was Asia) where GDP rose.

See full Article.

EC Makes It Easier for Shareholders to Nominate Corporate Directors

However, when CorpCounsel.com last spoke with him, he predicted that the Securities and Exchange Commission would pass the so-called "proxy access" rule, which gives shareholders greater say over the election of officers, in time for the start of the spring proxy season.

Jackson was happy to see that his prediction came true on Wednesday, as the SEC approved the rule by a 3-2 vote. Jackson, who is preparing for his first semester as a law professor at Columbia University Law School, will also be giving out stock tips and fantasy football advice.

See full Article.

Proxy Access: A New Era for Shareholder-Board Relations

The Securities and Exchange Commission's 3-2 vote to grant shareholders "proxy access" represents significant progress for shareholder rights advocates and marks further movement toward a shareholder-centric corporate governance model in the United States, The Conference Board Governance Center said in a statement.
After many years of debate, the SEC was able to act quickly due to authority granted under the Dodd-Frank Wall Street Reform and Consumer Protection Act. "Now that the SEC has made its determination on proxy access, it is incumbent on boards and shareholders to understand the implications for their companies," said R. William Ide, III, chairman of The Conference Board Governance Center Advisory Board. "However, this action can also be seen as a symptom of the greater need for more meaningful dialogue among companies, shareholders and boards of directors."

See full Press Release.

SEC Passes Rule That May Help Investors Change Boards

U.S. regulators will let investors owning 3 percent of a company nominate directors on corporate ballots, a step that may help shareholders oust board members accused of overpaying executives and failing to boost shares.

The Securities and Exchange Commission voted 3-2 today to require that companies put investor board candidates on the proxy statements sent to stockholders before director elections. Investors or groups that meet the ownership threshold for three years will be eligible to offer nominees.

See full Article.

UN climate change panel to face Himalaya error verdict

An international committee reviewing the "processes and procedures" of the UN's climate science panel is set to report on Monday.

The Intergovernmental Panel on Climate Change (IPCC) has faced mounting pressure over errors in its last major assessment of climate science in 2007.

The review was overseen by the Inter-Academy Council, which brings together bodies such as the UK's Royal Society.

See full Article.

U.S. financial reform: corporate governance and executive compensation provisions for public companies

The corporate governance provisions discussed in this Alert require shareholder proxy access, expand compensation disclosure, institute say-on-pay votes, prohibit brokers from voting street-name shares on say-on-pay and other significant matters, mandate membership and operation of compensation committees, strengthen proxy disclosure, and amend securities transaction reporting under sections 13 and 16 of the Securities Exchange Act of 1934. The Act also vests broad rulemaking discretion in the SEC, which may make it difficult to foresee the full impact of the Act at this time.

See full Press Release.

As the green economy grows, the 'dirty rich' are fading away

So the blown-out oil well in the gulf has finally stopped gushing, plugged with heavy mud and awaiting the ultimate "kill" by a relief well. Yet, even with the largest oil spill in the nation's history in the background, what seems to have been killed much more quickly is Washington's will to take meaningful action on the environment. After axing climate-change legislation in late July, the Senate is now taking up a modest energy bill -- and even that effort may go nowhere.

See full Article.

Debt and Democracy

Democracies use windfalls from international commodity price booms to reduce external debt. Autocracies tend to spend them

COMMODITY-exporting countries often experience large commodity price shocks that pose serious challenges to their macroeconomic stability. For example, the sudden influx of foreign earnings from a surge in commodity prices can increase a country’s real exchange rate (the nominal exchange rate, adjusted for inflation) and make its noncommodity exports less competitive. The effect of such unanticipated price changes on the competitiveness of commodity exporters has been studied widely by economists.

There are other significant, if less studied, repercussions on commodity-exporting countries from such price shocks, which boost both foreign reserves and government revenue.

See full Press Release.

SEC Votes to Boost Power Over Boards

Shareholders won greater clout to place directors on corporate boards Wednesday, marking the latest victory for the "shareholder rights" movement that has gradually chipped away power from top executives running U.S. corporations.

But a party-line split vote at the Securities and Exchange Commission, and a denunciation of the new rule by a Republican commissioner who suggested it is illegal, points to new skirmishes ahead.

See full Article.

SEC Approves Rule That May Make It Easier to Remove Directors

Harvey Pitt, former U.S. Securities and Exchange Commission chairman and now chief executive officer of Kalorama Partners LLC, talks with Bloomberg's Mark Crumpton about a U.S. Securities and Exchange decision to allow investors owning 3 percent of a company to nominate directors on corporate ballots. The SEC voted 3-2 today to allow investor board candidates on the proxy statements sent to stockholders before director elections. Investors or groups that meet the ownership threshold for three years will be eligible to offer nominees. (Source: Bloomberg)

U.S. regulators will let investors owning 3 percent of a company nominate directors on corporate ballots, a step that may help shareholders oust board members accused of overpaying executives and failing to boost shares.

See full Article.

Dodd-Frank's 'say on pay' could impact executive pay

One of the lesser-known elements of the sweeping Dodd-Frank Act aimed primarily at reforming the nation's banks is directing the Securities and Exchange Commission to write rules that could temper the compensation of executives across multiple industries.

At issue is a requirement in the statute that directs the SEC to give institutional investors -- starting in 2011-- a vote on the pay packages of top executives at U.S. corporations. While the vote is non-binding and corporations are not required to follow the wishes of shareholders, the provision is expected to have a transformative impact on the relationship between CEOs and institutional investors, in part, because of the embarrassment a company could experience if investors give its executive pay a strong negative vote.

See full Article.

Yes, we might

Shareholder power is about to expand, will it be used?

Institutional shareholders. It's hard to think of a more powerful interest in the corporate landscape. Unfortunately, it's also hard to think of an industry more impotent when it comes to change.

But that bland bunch of sheep are about to be entrusted with even more power. The Securities and Exchange Commission voted Wednesday on a rule change that would give institutions more say in director elections and influence in the companies in which they invest.

See full Article.

Effective corporate governance for SMEs

The firms face increasing fraud risks if they don't enact sound corporate governance

IN MAY this year, the Singapore Corporate Awards were given to a few outstanding companies in recognition of their effective governance practices. Given the mounting cases of corporate fraud in the last few years, such recognition could not have come at a better time.

Diagnostic tool: SMEs need to ask themselves whether a board has been set up with independent directors consisting of at least one-third of its members, whether roles, authorities and responsibilities of the board, management and employees are clearly defined and communicated, and whether a governance code of conduct is available.

See full Article.

Stricter controls urged for the UN's climate body

The UN's climate science body needs stricter checks to prevent damage to the organisation's credibility, an independent review has concluded.

The Intergovernmental Panel on Climate Change (IPCC) has faced mounting pressure over errors in its last major assessment of climate science in 2007.

The review said guidelines were needed to ensure IPCC leaders were not seen as advocating specific climate policies.

See full Article.

Information governance is corporate governance

Corporate governance in business today is an information-centric issue. The key to effective governance is the absolute control over all corporate information, ensuring it is securely stored and protected from unauthorised access, while also making it easily available to those with a need and a right to access it.
This information covers everything from confidential customer contact and account data, to access codes to banking accounts and strategic plans.

See full Article.

SEC making access to ballot easier

Federal regulators are moving to make it easier for shareholders to nominate directors of public companies, a major change long sought by investor advocates and buttressed by the new financial overhaul law.

The action by the Securities and Exchange Commission will allow groups that own at least 3 percent of a company's stock to put their nominees for director on the annual proxy ballot sent to all shareholders. Getting their candidates on the board gives them a better shot at influencing company policy. It likely will be in place in time for next spring's corporate elections season — and observers say it may be used to target boards of some companies.

See full Press Release.

Pesky shareholder activists gain influence

After years of battling futilely to rein in corporate boards, 'gadflies' are winning votes.

Edison International last spring allowed its shareholders for the first time to vote on the compensation of the utility giant's executives. It was a sweet victory for investor activist John Chevedden.

Working out of his Redondo Beach condo, the retired engineer had put forward a resolution calling for such "say on pay" votes at Southern California Edison's parent company.

See full Article.

Research may help identify CEO lies

Jaded investors have always suspected certain CEOs provide something less than the truth, the whole truth and nothing but the truth when they pick up the phone for their quarterly conference calls with analysts and investors.

Their suspicions are only confirmed -- if they are ever confirmed -- months later when the real story finds the light of day, usually because of regulatory scrutiny or a corporate confession.

But imagine if there was a way for those listening in to predict whether a CEO or other executives on the call were lying.

See full Article.

Board diversity requirements and CSA guidelines

As noted in our 8 July edition, on 30 June the ASX Corporate Governance Council released final changes to the Corporate Governance Principles and Recommendations (Recommendations) regarding, among other things, board diversity. The changes will take effect from the first financial year applicable to listed entities on or after 1 January 2011, however earlier transition is encouraged.

The Recommendations have been amended to require ASX listed entities to adopt and disclose a diversity policy which requires the board to establish measurable objectives for achieving gender diversity.

See full Press Release.

Common Questions About GRC, and Some Answers

Earlier this summer I participated on a panel at the Institute of Internal Auditors international conference, held this year in Atlanta. The subject of the panel was governance, risk, and compliance, covering a range of matters raised by the moderator and enthusiastic participants. Compliance Week readers often have similar issues on their minds, so I’d like to share my responses to some of the questions raised. Since I don’t have notes, I’ll do my best in reconstructing my remarks.

See full Article.

The Case Against Corporate Social Responsibility

The idea that companies have a duty to address social ills is not just flawed, argues Aneel Karnani. It also makes it more likely that we'll ignore the real solutions to these problems.

But the idea that companies have a responsibility to act in the public interest and will profit from doing so is fundamentally flawed.

Large companies now routinely claim that they aren't in business just for the profits, that they're also intent on serving some larger social purpose.

See full Article.

Analysis Highlights New Trends in Dow 30 Governance Disclosure

The Conference Board, in collaboration with Davis Polk & Wardwell LLP, today released a series of four Director Notes to provide guidance and examples to public companies on emerging practices following the SEC enhanced disclosure reform of December 2009.
The reports, based on an analysis of the 2010 proxy statements of the 30 companies in the Dow Jones Industrial Average plus those of select financial institutions, analyze disclosure on such important corporate governance issues as the role of the board of directors in risk oversight, CEO/chairman separation and other aspects of board leadership, board diversity and director qualifications, and compensation-related risk and the independence of compensation consultants.
Research findings include:

See full Press Release.

Australia: The ASX Corporate Governance Changes At A Glance

All listed entities must have Securities Trading Policies from 1 January 2011, and report on their gender diversity targets and progress, and the composition of their Remuneration Committee (if any) from 2011.

Are you keeping track of all the ASX's new Listing Rule and corporate governance changes? Here's our concise guide.

See full Article.

Influence of mitigation policy on ocean acidification

This study quantifies the relative impact on future ocean acidification of different aspects of global climate change mitigation policies, such as the year that global emissions peak, how fast they reduce after their peak, and the long term minimum emissions that are possible. Relative to a scenario where emissions peak in 2016 and then decrease by 1% per year, further emissions reductions to 2, 3 and 4% per year lead to the same impact minimum pH (by 2100) if emissions peak 10, 15 and 17 years later respectively. Over the same time scale, non-mitigation scenarios lead to a decrease of global mean surface pH of 7.67 to 7.81. Strong and urgent mitigation, emissions peaking in 2016 and reducing by 5% per year, are shown to limit this minimum to 8.02. Minimum pH over longer timescales, the next 500 years, is largely determined by the minimum emission level that is attainable, owing to its relation with cumulative emissions.

See Study page.

Deal close in Tasmania forest conflict

A DEAL is close on a roadmap to end the generation-old Tasmanian forests conflict, but not at the price of building Gunns's controversial pulp mill.

After three months of confidential talks between industry and green groups, agreement is near on a short timeline for loggers to quit the main battlegrounds fringing the Tasmanian Wilderness World Heritage Area.

See full Article.

Growth undermining improved air quality

SYDNEY risks falling short of its air pollution targets for photochemical smog and ozone, as growing population and traffic congestion erodes the gains made by the switch to unleaded petrol in the 1980s.

While the city's air is usually cleaner now than it has been for more than 20 years, a new report from the NSW Department of Environment, Climate Change and Water suggests the respite could be temporary.

See full Article.

Pacific Hot Spells Shifting as Predicted in Human-Heated World

Federal researchers have published work concluding that a particular variant of the periodic El Niño warmups of the tropical Pacific Ocean is becoming more frequent and stronger. The pattern appears to fit what is expected from human-driven warming of the global climate, said the researchers, Tong Lee of NASA’s Jet Propulsion Laboratory and Michael McPhaden of the Pacific Marine Environmental Laboratory, part of the National Oceanic and Atmospheric Administration.

See full Article.

Solar bonus generates a mega-load of energy

THE NSW Government's solar bonus scheme, which pays householders for the electricity they generate from their rooftop panels, has proved so popular it has reached a 50-megawatt milestone 18 months before expected.

But experts have warned that it is too generous and too short-term to encourage the industry investment in solar that is vital for a renewable energy future.

See full Solar bonus generates a mega-load of energy

Wind Turbine Projects Run Into Resistance

The United States military has found a new menace hiding here in the vast emptiness of the Mojave Desert in California: wind turbines.

Moving turbine blades can be indistinguishable from airplanes on many radar systems, and they can even cause blackout zones in which planes disappear from radar entirely. Clusters of wind turbines, which can reach as high as 400 feet, look very similar to storm activity on weather radar, making it harder for air traffic controllers to give accurate weather information to pilots.

See full Article.

Global Reputation Pulse Study 2010

The Most Reputable Companies in the World

See full Report, in pdf format.

Increasing intensity of El Niño in the central-equatorial Pacific

Satellite observations suggest that the intensity of El Niño events in the central equatorial Pacific (CP) has almost doubled in the past three decades, with the strongest warming occurring in 2009–10. This is related to the increasing intensity as well as occurrence frequency of the so-called CP El Niño events since the 1990s. While sea surface temperature (SST) in the CP region during El Niño years has been increasing, those during neutral and La Niña years have not. Therefore, the well-documented warming trend of the warm pool in the CP region is primarily a result of more intense El Niño events rather than a general rise of background SST.

See Report page.

The Burden of Thirst

Information flows to every corner of the world much like movements of the water cycle, connecting people more than ever before. But nothing separates us more than the inequality that exists in access to water. Nearly 900 million people lack access to clean water, and more than 3.3 million – most children under age five – die each year as a result. In many developing countries, the brunt of the inequality rests with women. In southwestern Ethiopia, women and young girls spend at least eight hours everyday collecting water, often from polluted or nearly dry streams. Some trips are for water used to make homemade beer for husbands. Herein is a second inequality: Men are not expected to fetch water, and women are ostracized should they try to liberate themselves from this “vicious circle of inequality.” Tina Rosenberg of National Geographic reveals the trials of collecting water in developing countries and efforts of the international community to alleviate women’s burden. – YaleGlobal

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Efforts to curb foreign bribery remain inadequate

New report shows the need to improve enforcement

The number of countries enforcing a ban on foreign bribery has shown continuous progress in the last six years, with countries representing more than half of world exports taking action, according to a new report by Transparency International (TI). However, there are still twenty countries that have taken little or no action.

TI’s report shows that 7 of the 36 countries evaluated are actively enforcing the OECD Anti-Bribery Convention to which they are party. These countries represent approximately 30 per cent of world exports. The increase from four to seven actively enforcing countries since TI’s 2009 report is a very positive development. The 2010 TI report also shows moderate enforcement in nine other countries which account for 21 per cent of exports. The 20 countries with little or no enforcement represent about 15 per cent of world exports.

See full Press Release.

Seeing through corruption: Annual Report 2009

Corruption has no conscience. When allowed to spread, its corrosive effects destroy trust and fuel injustice, regardless of geography or sector. To counter this scourge, Transparency International (TI) works around the world fostering greater transparency and accountability in government and business, and empowering people to demand their rights. TI’s latest Annual Report provides compelling evidence of how the global anti-corruption movement is making concrete gains against corruption.

See full Press Release.

Miden la acumulación de plástico en el Atlántico

La cantidad de plástico hallada en el Atlántico no parece haber aumentado recientemente.

Un estudió calculó la cantidad de basura plástica acumulada en una región del Océano Atlántico durante 22 años.

Investigadores estadounidenses, que publicaron los resultados de su investigación en la revista Science, indicaron que el volumen de plástico llegó a su punto máximo en los últimos años y ahora parece no estar aumentando.

Ver Artículo completo.

Wind Turbine Projects Run Into Resistance

The United States military has found a new menace hiding here in the vast emptiness of the Mojave Desert in California: wind turbines.

Moving turbine blades can be indistinguishable from airplanes on many radar systems, and they can even cause blackout zones in which planes disappear from radar entirely. Clusters of wind turbines, which can reach as high as 400 feet, look very similar to storm activity on weather radar, making it harder for air traffic controllers to give accurate weather information to pilots.

See full Article.

Global Reputation Pulse

Access Reputation Institute knowledge with Global Reputation Pulse.

Global Reputation Pulse will give you a clear snapshot of your reputation landscape, and critical information about which factors drive reputation in your particular industry. Every year, Reputation Institute looks at how the general public rates 1,000 companies in over 20 industry categories and more than 25 countries, making Global Reputation Pulse the largest study of reputation in the world.
Reputation Institute's methodology combines rigorous academic research with a decade of experience working with some of the world's most successful organizations.

See full Details.

Scientist scorns Putin's climate musings

The Russian Prime Minister, Vladimir Putin, has queried whether man is to blame for climate change on a visit to the remote Russian Arctic, only to be bluntly contradicted by a German scientist.

At a Russian-German research station at the mouth of the Lena River in the far-eastern Yakutia region on the Arctic Ocean, Mr Putin was shown ice said to be up to 3000 years old and handled bones from an extinct mammoth.

See full Article.

Are iPads and Kindles better for the environment than books?

The environmental credentials of the iPad and Kindle.

E-readers are everywhere, even at my local library. But what about the trees? You told us about reading the newspaper online vs. getting the print edition, so now tell us about e-books. Does reading on my Kindle represent a win for the environment?

Environmental analysis can be an endless balancing of this versus that. Do you care more about conserving water or avoiding toxic chemical usage?

See full Article.

2010 Bribery Act: A Briefing for NGOs

This briefing provides an overview of the new law, the UK Bribery Act, and its implications for NGOs, especially those operating overseas in environments where corruption risks are high.

See full Details.

Green energy market 'resilient' to downturn in 2009, according to U.N.

Renewable energy investment still strong despite global recession, says U.N.
Over half of all new electricity capacity created in 2009 came from renewable sources
Wind power received record investment, with China performing strongly

The creation of new power capacity from renewable energy has exceeded new fossil fuel power generation in the United States and Europe for the second year running, according to two United Nations reports published Thursday.

Renewables accounted for over 50 percent of new capacity in the U.S. in 2009 while in Europe the figure was 60 percent, leading the U.N. to predict that the world as a whole will add more capacity to the electricity supply from renewables than non-renewables this year or by 2011.

See full Article.

Zero-emissions electric car goes on trial

A zero-emissions electric car will be trialled by the state government as it considers whether to add several to its permanent fleet.

Mitsubishi's I-MiEV, the first mass-market all-electric car approved for use in Australia, is designed to be driven in the city, with a top speed of 130kmh.

See full Article.

Declining trees spell gloom for planet

LESS rainfall and rising global temperatures are damaging one of the world's best guardians against climate change: trees.

A global study, published in the journal Science, shows that the amount of carbon dioxide being soaked up by the world's forests in the past decade has declined, reversing a 20-year trend.

See full Article.

Put a cork in it: the environmental cost of the screw cap

In recent years the cork has been steadily usurped by cleaner, more convenient screw caps. But the environmental impact of this social shift is massive. Now the traditional cork growers are fighting back. But have they left it too late?

There is a strong Asterix vibe to the annual cork oak harvest of the Alentejo in Portugal. Deep into one of the 350 remaining cork oak forests (in my case Herdade dos Fidalgos, near Lisbon) sometime between June and August you'll suddenly come across a team of about 20 men, ranging in ages from 16 to 70, striking huge twisted trees with axes.

See full Article.