Introduction
Luxembourg companies pressured to end diversity practices, but government won’t change course to please US: ministers
Equality minister Yuriko Backes and economy minister Lex Delles have acknowledged that companies in Luxembourg have been contacted by the US embassy, pressuring them to comply with executive orders issued by US president Donald Trump barring companies that benefit from US contracts or grants from pursuing diversity, equality and inclusion policies. However, the ministers say the government will continue to back companies that have introduced diversity and inclusion measures and is planning to launch additional voluntary programmes to promote gender equality and a more inclusive and equal society.
Best source: Wort (in German)
See also: Virgule (in French)
Administrator of Germany’s Greensill Bank sues executives and directors for €93.4m as prosecutors prepare fraud charges
The insolvency administrator of Greensill Bank in Germany, Michael Frege, has sued four executives and three supervisory board members of the defunct bank for €93.4m. Bremen prosecutors have also nearly completed an investigation targeting 13 individuals on suspicion of deliberately leading the institution into bankruptcy, falsification of financial statements and fraud. Some 20,000 individual consumers of Greensill Bank were reimbursed by the deposit insurance scheme for Germany's private banks at a cost of €2.7bn, but local authorities across the country were left with losses of around €330m.
Best source: Handelsblatt (subscription required, in German)
Activist group ShareAction and institutional investors question HSBC over net zero commitments
Campaign group ShareAction and institutional shareholders that oversee $1.6trn in assets have questioned HSBC over adherence to its net zero commitments, calling on the group to restate its climate priorities. The bank eased its decarbonisation targets earlier this year, pushing back its goal of achieving net zero emissions in its operations and supply chains from 2030 to 2050. It is also reviewing the 2030 interim target it has set for emissions by the companies to which it provides financing, blaming delays in technological advances, slower-than-expected diversification of the energy mix, decreased market demand for climate solutions, and changes in customer preferences and governments' policies. HSBC is also eliminating the role of group chief sustainability officer following the departure of Celine Herweijer at the end of last year.
Best source: ESG Today
UBS Asset Management and Danske Bank to ease ESG restrictions on investment in defence companies
UBS Asset Management and Danske Bank have lifted some of the restrictions on their sustainable funds investing in weapons manufacturers. Allianz Global Investors has already removed its exclusion policy regarding defence companies for its funds categorised under article 8 of the EU's Sustainable Finance Disclosure Regulation. UBS Asset Management, which has $1.8trn in assets under management, will now authorise some of its sustainability-focused funds to invest in manufacturers of conventional weapons. Danske Bank's asset management and pension businesses have also removed restrictions, adding a further 30 stocks to its investable universe, which now includes around 200 defence businesses.
Best source: Reuters (subscription required)
See also: Danske Bank
Berkshire Hathaway investors vote against environmental reporting, diversity and AI proposals
Shareholders of Berkshire Hathaway, the investment conglomerate founded by soon-to-retire Warren Buffett, have voted against proposals that would require it to report on so-called voluntary environmental activities that exceed the requirements of US state and federal rules. They have also rejected proposals to publish risk reports on race-based initiatives at its subsidiaries, as well as against requiring the appointment of independent directors to oversee risks related to artificial intelligence. Buffett, who controls about 30% of Berkshire's shareholder votes, and other Berkshire directors opposed all seven proposals, arguing that they were unnecessary and in some instances conflicted with the group's decentralised culture.
Best source: Reuters (subscription required)
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