July 15, 2020

Survey: Hedging Policy Disclosure

We’ve wrapped up our latest survey relating to hedging policy disclosure.  Here are the results:

1. We’re refining our hedging policies & practices in light of the new disclosure rule:
– Yes – 22%
– We considered it and decided not to – 22%
– We’ve seen no need to revisit our existing policy – 56%

2. In our proxy, we’ll include disclosure about our hedging policies & practices:
– Only as part of the CD&A – 56%
– Outside of the CD&A, and also incorporated into it – 19%
– In both the CD&A (for NEOs only) and another part of the proxy (for everyone covered) – 25%

3. To disclose our hedging policies & practices, we’ll provide:
– Our full policy – 7%
– A “fair & accurate summary” – 93%

Please take a moment to participate anonymously in these surveys:

Signature Authority Thresholds

Insider Trading Policies – COVID-19 Adjustments

Providing Clarity: SASB & GRI Announce Collaboration

Last year, Liz blogged about calls for standardized sustainability disclosure and the “alphabet soup” of reporting frameworks, which haven’t diminished with time.  But now, in an effort to help companies and investors, the SASB and GRI announced a “collaborative work plan.”  Each organization issued an announcement – here’s the SASB announcement and GRI’s.  The collaboration sounds promising, an Accounting Today article helps explain what this means:

The collaboration aims to demonstrate how some companies have used both sets of standards together and the lessons that can be shared. SASB and the GRI also hope to help the consumers of sustainability data, such as investors and financial analysts, understand the similarities and differences in the information created from these standards.

The collaboration will initially focus on delivering communication materials to help stakeholders better understand how the standards can be used together. GRI and SASB also plan to develop examples based on real-world reports to demonstrate how the standards can be employed concurrently. These resources are expected to be delivered before the end of this year.

GRI and SASB both provide compatible standards for sustainability reporting, but the groups pointed out that they’re designed to fulfill different purposes and are based on different approaches to materiality. The two groups noted that independence is important to both the GRI and SASB standard-setting processes, and they plan to maintain their independence. This collaborative work plan may identify opportunities to consider how the SASB and GRI standards may be developed in the future. Decisions about standard setting, content of standards, and their interpretation are the sole responsibility of the independent standards-setting functions, which rest with the Global Sustainability Standards Board on behalf of GRI, and of the SASB Standards Board.

Transcript: “M&A Litigation in the Covid-19 Era”

We have posted the transcript for the recent webcast: “M&A Litigation in the Covid-19 Era.”

– Lynn Jokela