Interesting press release from the new government regarding the water utility sector.
Advocates for shareholder action have a number of degrees of militancy from re-election of directors to agenda proposals at AGM/EGMs some NGOs suggest a NED on boards for Nature setting management as unaccountable for ESG Metrics targets and Net Zero delivery. The Government move to "expect water companies to change their articles of association" ( Bullet point 2 in link below) is interesting in this debate of things companies can do and how action might impact management and consequently corporate behaviour.
Adding customer interest and environmental interest to Articles of association would be directive to changing the fiduciary duty of directors that is traditionally anchored in shareholder interest with stakeholder interests being if top of mind a single materiality issue for management. This change of Articles could force directors to act with a double materiality mindset.
What do you think?
Government announces first steps to reform water sector
| GOV.UK |
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| Government announces first steps to reform water sector |
| Environment Secretary Steve Reed has announced a series of initial steps towards ending the crisis in the water sector. |
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David Manuel
Partner
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