Serious Fraud Office investigation relates to the financing agreement between GFG Alliance and Greensill Capital. In the wake of the GFG Alliance financial problem, the U.K.’s fraud prosecutor opened a probe into Sanjeev Gupta’s GFG Alliance over suspicions of fraud and money laundering, causing a potential lender to the group to withdraw from agreements to provide new financing. As a result, borrowers like steel magnate Sanjeev Gupta’s GFG Alliance may be unable to pay, potentially leaving investors on the hook for $2.3 billion of losses.” According to Reuters, “Credit Suisse Asset Management in March froze $10 billion of funds managed on behalf of outside investors, whose money is poured into trade-finance loans sourced by the now-insolvent Greensill. GFG Alliance’s problem with Credit Suisse started when its main financier, Greensill Capital UK Ltd, collapsed in March 2021, leaving GFG Alliance scrambling for cash. Sanjeev is widely known for buying out troubled steelworks and factories to keep them alive and save jobs. Just as it seemed as though the storm clouds were parting after the Archegos fiasco, Credit Suisse found itself in the news for another debt controversy, this time with GFG Alliance, a U.K. ‘That’s huge,’ the court is telling the company they have to make financial sacrifices and shift their behavior.”Īfter Archegos Fiasco, Credit Suisse Continues to Drown in an Ocean of Debt Controversies According to Joana Setzer, assistant professor at the Grantham Research Institute at the London School of Economics and Political Science (“LSE”), “The judgment is “mind-blowing” by “basically changing … what Shell is at the core. Dutch Shell’s “sustainability policy was found to be insufficiently ‘concrete’ by the Dutch court in an unprecedented ruling that will have wide implications for the energy industry and other polluting multinationals.” The ruling against Royal Dutch Shell is perceived to set the scene for more corporate climate change cases. In a second major development, a court in the Hague recently ordered Royal Dutch Shell to cut its carbon emissions by 45% by 2030 in a landmark case brought by Friends of the Earth with over 17,000 co-plaintiffs. Shareholders have said ‘enough.’ Shareholders are using their power. 1 board victory as a “powerful signal has been sent to every oil company, to every company that’s polluting, to every company that’s in the economy These boards can’t continue ignoring their shareholders. According to BlackRock, “Exxon and its Board need to assess further the company’s strategy and board expertise against the possibility that demand for fossil fuels may decline rapidly in the coming decades The company’s current reluctance to do so presents a corporate governance issue that has the potential to undermine the company’s long-term financial sustainability.” As You Sow’s CEO Andrew Behar sees the Engine No. Industry titans- BlackRock and As You Sow hailed the Engine No. 1, founded only seven months ago, on December 1, 2020, prides itself as a company on a mission to shake up the oil industry from the inside out and to push these rich multinationals to prepare for a future without fossil fuel. It served as a wake-up call to Exxon executives that years of poor profits were no longer acceptable.Įngine No. The election came as a surprise to an energy sector struggling to address rising investor worries about global warming. The resolutions raise important corporate responsibility questions at annual shareholder meetings and seek to shape how public companies police themselves. The vote comes as support for environmental, social, and governance shareholder resolutions have grown. In a quest to shake up the oil and gas industry, dissident financial backer, Engine No. Long a political heavyweight across the globe, the oil companies recently suffered a strong blow after investors, clients, and the courts pushed two of the largest to pay more attention to risks from climate change. 1 Board Members and the Court Ruling against Royal Dutch Shell Foreshadow Change for the Oil and Gas Industry to Benefit Climate Change?
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