Investors Seek Clarity on Banks’ Green Finance

HSBC AGM sparks controversy as ShareAction flags continued lack of targets and transparency over sector’s sustainability claims.

NGO ShareAction has declared it will continue to aid investors in their push for transparency into HSBC’s green finance investment pledge, highlighting endemic issues across the banking sector.

The decision followed the HSBC’s most recent AGM, at which a coalition of shareholders requested the bank explicitly set out how it intends to use the money it has earmarked for sustainable finance and establish a renewable energy funding target. HSBC has previously said it would target between US$750 billion and US$1 trillion by 2030.

The 16-strong investor group that asked the question during HSBC’s AGM represents US$892 billion in assets, including the likes Ethos Foundation, Epworth Investment Management, Royal London Asset Management, and Sweden’s Folksam pension fund. Following the meeting, HSBC agreed to meet with ShareAction and investors to discuss its green finance strategy before the 2025 AGM.

Jeanne Martin, Head of Banking Programme at ShareAction, told ESG Investor that the news was “broadly very positive” as it showed the bank’s willingness to consider investor expectations and demands on green finance.

“What we’d like to achieve is a bit more of a conversation, and really clarify what we’re after by providing context to our requests,” she added. “We also want the bank to hear from shareholders directly. It’s one thing to hear from ShareAction, but it’s another to really get confirmation that they care about this issue and want to see the bank move on green finance.”

By the end of the 2024 AGM season, ShareAction will have asked a total 24 questions at the AGMs of 17 European banks this year, including eight specifically focused on green finance. The advocacy has indicated its intention to attend the upcoming AGMs of BNP Paribas (14 May), Crédit Agricole and Société Générale (22 May).

Industry-wide issue

Last November, research from ShareAction found that Europe’s top 20 banks – including HSBC – successfully promoted their green finance credentials, but lacked transparency on green finance activity, leaving them and their investors exposed to greenwashing allegations.

“As investors, we are looking for as much transparency as possible from our portfolio companies, [and] clearly defined targets help us understand and evaluate their climate

Banker Bonus Cap Removal Bursts Fair Pay Bubble

Academics question logic behind higher pay for talent retention, as further pay votes are set for AGMs later this month.

HSBC’s decision to scrap a cap on bankers’ bonuses at last week’s AGM could open the floodgates for rising executive pay, further aggravating investor concerns around fair pay.

The vote to remove the cap received 99.3% shareholder support, allowing the bank to set a new limit for bonus and significantly increase payouts. HSBC paid its top investment bankers an estimated average bonus of US$771,700 last year, while median employee pay at the bank sits at £63,000 (US$79,000).

“It’s reflective of the general direction of travel with senior management pay in the UK,” Lindsey Stewart, Director of Investment Stewardship Research at Morningstar, told ESG Investor. “There’s a conviction, certainly among companies, boards and management, that higher pay has to be part of the equation for talent attraction and retention.”

Before the meeting, Stewart suggested the vote would “likely become a focal point for the UK’s conversation on executive pay”.

Overall trend

Under the previous legal cap, an employee’s bonus could not exceed 100% of their annual pay, or 200% with shareholder approval. These limits were scrapped from 31 October 2023 by then-Chancellor Kwasi Kwarteng’s mini budget.

Similar votes are due to take place at Barclays’ AGM on 9 May and Lloyds’ on 16 May. Beyond the UK, proxy advisor Glass Lewis has urged Morgan Stanley shareholders to vote against an executive pay proposal at its AGM on 23 May.

“The overall trend is going to be preserved,” said Stewart. “With HSBC is having approved this, it’s unlikely that we’ll see a rejection of those decisions at Lloyds or Barclays.”

Last week, Goldman Sachs removed its bonus cap for UK bankers, meaning they can now earn more than the previous limit of double their base pay. The decision was criticised by British trade unions.

The median pay for S&P 500 chief executives rose 9% to US$15.7 million in the year to April 15, increasing the gap between top management salaries in the US and UK. UK executives have complained they are underpaid compared to US peers, with several warning of a talent exodus without more competitive pay.

Last year,

Mapped: The Most Valuable Company in Each Southeast Asian Country

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May 6, 2024 Graphics/Design:

See this visualization first on the Voronoi app.

The Most Valuable Company in Each Southeast Asian Country

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

Southeast Asia has been emerging as an economic powerhouse in the past decade. However, there are very noticeable disparities in the sizes of the largest publicly-traded corporations in countries within the region.

In this visualization, we map the most valuable company in each Southeast Asian country, by their market capitalization in current U.S. dollars as of April 18th, 2024.

Data for this visualization and article is sourced from Companiesmarketcap.com, and the Laos and Yangon stock exchanges.

Southeast Asia’s Biggest Companies are Banks

The most valuable companies in Indonesia and Singapore, Bank Central Asia and DBS Group, are each worth more than $60 billion, and both are banks.

In the quartet of Malaysia, Thailand, Vietnam, and the Philippines, the largest companies by market cap are all worth around $20 billion. Out of the four, two are banks.

CountryCompanyMarket Cap 🇮🇩 Indonesia🏦 Bank Central Asia$73B 🇸🇬 Singapore🏦 DBS Group$69B 🇲🇾 Malaysia🏦 Maybank$28B 🇹🇭 Thailand⛽ PTT PCL$27B 🇻🇳 Vietnam🏦 Vietcombank$20B 🇵🇭 Philippines📈 SM Investments
Corporation$20B 🇰🇭 Cambodia🚢 Sihanoukville
Autonomous Port$1B 🇱🇦 Laos🏭 LALCO$312M 🇲🇲 Myanmar📈 First Myanmar
Investment$139M
Note: Figures are rounded, and current as of April 18th, 2024.

Cambodia stands by itself, with its most valuable publicly listed company, Sihanoukville Autonomous Port, worth $1 billion.

Meanwhile, LALCO in Laos is a credit leasing company worth $312 million and Myanmar’s biggest company, First Myanmar Investment, is worth $139 million.

Finally, Brunei and Timor-Leste do not have public stock exchanges, but for different reasons.

Most of Brunei’s economy relies on the state-owned oil sector, which also helps make its sultan the world’s second-richest monarch. However, in Timor-Leste, a small population combined with limited access to credit and liquidity has led to limited opportunities for the creation of publicly-listed companies or an exchange.