Norway's sovereign wealth fund joins calls for a special audit into Credit Suisse.
Norges Bank, the investment arm of Norway's sovereign wealth fund, the world's largest, has joined ISS and the Ethos Foundation in calling for a special audit of Credit Suisse related to the Greensill and Archegos matters.
In a list of voting recommendations, Norges Bank investment management is also advising against voting to approve the discharge of the board and senior management for fiscal year 2020. For fiscal year 2021 however, the fund recommends approving the discharge, the statement said.
Special Audit
«Where a company’s disclosure does not meet our needs as a financial investor, we will consider supporting a well-founded shareholder proposal calling for reasonable disclosure,» the fund said in explaining its rationale for the vote.
On issues related to ESG, the board should take into account material sustainability risks facing the company, as well as the broader environmental and social consequences of its operations and products. «Sustainability disclosures should be aligned with applicable global reporting standards and frameworks to support investors in their analysis of risks and opportunities,» it said.
The fund recommends approving the remuneration report, electing Axel Lehmann as director and board chair, and approving the allocation of income and dividends of 0.10 Swiss francs per share.
Earnings Warning
Last week, Credit Suisse announced it raised its legal provisions by around 600 million Swiss francs ($631 million) related to previously disclosed legal matters stretching back more than a decade, bringing the total legal provision number to 700 million francs for the quarter. It also issued a widespread earnings warning for its first-quarter results due Wednesday.
