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“AI and sustainability - cure or curse?”
While AI can help resolve data issues in sustainable investing, it can create problems such as information breaches and inherent bias in data.
Global | Publication | December 2016
On November 29, 2016 the Department for Business, Energy & Industrial Strategy (BEIS) published its much heralded Green Paper on corporate governance reform for discussion. A range of options are proposed for strengthening the UK’s corporate governance framework, since “the behaviour of a limited few has damaged the reputation of many”. Section 172 of the Companies Act 2006 (CA 2006) enshrines the importance of wider interest groups in corporate governance. Under that section, directors are required to take account of wider interests when seeking to promote the success of a company for the benefit of shareholders. Therefore, in the Green Paper, the Government is exploring new ways to connect boards to a wider range of interested groups and to build upon existing good governance practices. Options include: increasing shareholder influence over executive pay, strengthening the employee, customer and supplier voice at boardroom level, and extending higher minimum corporate governance and reporting standards to large privately-held businesses.
We will be responding to the Green Paper. We would be very interested in your views so as to reflect the practical experience of companies in this area and to represent the views of our clients. Please contact one of the authors or your usual Norton Rose Fulbright contact to discuss. Responses to the Green Paper are requested by February 17, 2017.
Executive pay remains an area of significant Government concern, and therefore the Green Paper suggests changes to the UK’s executive pay framework for quoted companies in five areas:
The Green Paper considers stakeholders to include employees, customers, suppliers, pension fund beneficiaries and the wider society. While not planning to change the current UK unitary board system, the Green Paper sets out the following options to strengthen the voice of such stakeholders at board level in large UK companies, particularly the voices of employees and customers:
The Green Paper sets out a number of reasons why similar corporate governance and reporting standards that apply to public companies should apply to some private companies. These include the fact that there are stakeholders beyond the owners and managers of a business that have a strong interest in whether a business is well run, for example, employees, customers, supply chains and pension fund beneficiaries, and all suffer when a private company fails. The following options for reform are set out:
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While AI can help resolve data issues in sustainable investing, it can create problems such as information breaches and inherent bias in data.
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In this edition of Regulation Around the World we review recent steps that financial services regulatory authorities have taken as regards investment research.
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n a long-running dispute, taking in no less than three arbitrations spanning 26 years cumulatively (involving allegations of state interference in the arbitral process), the Court has provided useful guidance on the ss.67 and 68 challenges, particularly in the context of investor-state claims.
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