US government pressures EU-based suppliers and providers to comply with Trump’s diversity and inclusion ban
US embassies have contacted major EU businesses that are service providers or suppliers to the US government, demanding they comply with an executive order from president Donald Trump banning diversity, equity and inclusion programmes. The directive affects any companies that provide services to the US government, including those based abroad. The order, which reverses the Biden administration's initiatives to promote diversity, has prompted a backlash from companies and officials in Europe.
Best source: euronews
Luxembourg government introduces draft bill to transpose EU boardroom gender balance directive into national law
The Luxembourg government has introduced legislation to adopt an EU directive that aims to improve gender balance on companies' boards of directors. The Gender Balance on Corporate Boards Directive, whose deadline for being transposed into national law passed last December, requires both genders to hold at least 40% of non-executive positions or a minimum of 33% of all board seats by June 30, 2026. The government's draft bill takes up the second option, requiring listed companies to increase the proportion of members of the under-represented sex in all decision-making board positions, not just non-executive directorships. Financial regulator CSSF has been designated as the competent authority to monitor companies' compliance, requiring companies to report board composition annually and is empowered to impose sanctions for breaches including fines and administrative measures.
Best source: Paperjam (in French)
See also: Delano
European Commission asks Italian government for details of so-called ‘golden power’ over bank acquisitions
The European Commission has used the EU Pilot dialogue mechanism to ask the Italian government about the way it applies its so-called 'golden power' rules to screen potential bank acquisitions, which are supposed to apply to foreign groups taking over Italian companies of national interest. The dialogue mechanism allows for informal but structured discussions with member states over compliance with EU legislation.
Best source: Reuters (subscription required)
European Parliament approves delays to corporate sustainability and due diligence reporting legislation
The European Parliament has approved the European Commission's proposal to delay and simplify sustainability and due diligence reporting requirements for most smaller businesses. Under the Simplification Omnibus package proposed in February, the Commission would reduce the scope of the Corporate Sustainability Reporting Directive and Corporate Sustainability Due Diligence Directive, and introduce a two-year delay to their implementation so that further changes can be negotiated.
Best source: Reuters (subscription required)
See also: ESG Today
SES board ready to meet Appaloosa’s concerns about governance while maintaining state’s outsized voting rights
The board of directors of SES has moved toward meeting the expectations of its US hedge fund shareholder Appaloosa Management for governance changes, without relinquishing the state's outsized 45% share of voting rights, which it says is a strategic issue for Luxembourg and the EU. New board members Ellen Lord and John Shaw have been appointed to reflect SES's commitment to effective investor relations, while Frank Esser has been elected chairman. SES's executive management has seen significant changes under CEO Adel Al-Saleh since February 2024.
Best source: Paperjam (in French)
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