– According to The Wall Street Journal (paywall), California’s plans to require the world’s largest companies to report on their carbon emissions is inching forward despite legal challenges from opponents and waning enthusiasm for ESG goals in some quarters. Despite those challenges, many companies seem to accept that they will eventually have to engage in the difficult and potentially costly exercise of tracking emissions.
The law’s main backer, California state Senator Scott Wiener, called it a ‘first in the nation’ carbon disclosure law, meant to be a step toward deep emissions cuts. California is pressing on, Wiener said, even as Governor Gavin Newsom has publicly aired some concerns over the potential costs to companies and unsuccessfully pushed for legislation that would slow the process down.
– Meanwhile, Newsom vetoed an AI safety bill after the tech industry raised objections, The Guardian reported. Newsom said requiring companies to stress-test large AI models before releasing them could drive AI companies from the state and hamper innovation.
‘California is home to 32 of the world’s 50 leading AI companies,’ the governor said in a statement accompanying the veto. ‘The bill applies stringent standards to even the most basic functions – so long as a large system deploys it. I do not believe this is the best approach to protecting the public from real threats posed by the technology.’
The Safe and Secure Innovation for Frontier Artificial Intelligence Models Act would have targeted companies developing generative AI. Companies building models costing more than $100 mn would have been required to implement ‘kill switches’ for their AI and publish plans for the testing and mitigation of extreme risks.
– The National Labor Relations Board (NLRB) issued a complaint accusing Apple of violating employees’ rights to organize and advocate for better working conditions by having a series of unlawful workplace rules, Reuters (paywall) reported. The NLRB alleged in the complaint that Apple required employees nationwide to sign illegal confidentiality, non-disclosure and non-compete agreements and imposed overly broad misconduct and social media policies. The complaint accuses the company of ‘interfering with, restraining and coercing employees in the exercise of’ their rights under federal labor law.
Apple said in a statement that it has always respected its employees’ rights to discuss wages, hours and working conditions, which is reflected in its employment policies. ‘We strongly disagree with these claims and will continue to share the facts at the hearing,’ the company said. If Apple does not settle the case, it will be heard by an administrative judge beginning in January.
– According to the WSJ, Charles Schwab has named Rick Wurster as its next CEO, promoting an executive who has been primed for years to take the top job. Wurster, who is at present Schwab’s president, will take over as CEO and join the board on January 1. Longtime CEO Walt Bettinger will retire from the position and continue to be executive co-chair of the board alongside namesake founder Charles Schwab.
– The SEC said Gurbir Grewal, director of its division of enforcement, will leave the agency on October 11. Sanjay Wadhwa, the division’s deputy director, will become acting director and Sam Waldon, the division’s chief counsel, will become acting deputy director. Grewal was New Jersey Attorney General before joining the SEC in 2021, and previously Bergen County Prosecutor. According to the SEC, during Grewal’s tenure the agency brought more than 2,400 enforcement matters resulting in orders for more than $20 bn in disgorgement, prejudgment interest and civil penalties.
– Reuters reported that the NLRB accused Amazon.com of illegally refusing to bargain with a union representing drivers employed by a contractor. The NLRB complaint claims Amazon is a ‘joint employer’ of drivers employed by the contractor, Battle Tested Strategies (BTS), and used a series of illegal tactics to discourage union activities at a facility in Palmdale, California. BTS drivers voted to join the International Brotherhood of Teamsters union last year, becoming the first Amazon delivery contractors to unionize. The NLRB said Amazon broke the law by terminating its contract with BTS after the drivers unionized without first bargaining with the Teamsters.
In a statement, an Amazon spokesperson said the NLRB did not include many of the Teamsters' claims in its complaint, showing that the union was ‘misrepresenting the facts.’
‘As we’ve said all along, there is no merit to any of their claims. We look forward to showing that as the legal process continues and expect the few remaining allegations will be dismissed as well,’ the spokesperson said. The company has said in the past that it does not have enough control over drivers’ working conditions to be considered their joint employer.
– Nike said it was withdrawing its full-year guidance and postponing its investor day as it gears up for a new CEO to take charge, according to CNBC. The company announced last month that CEO John Donahoe would be stepping down in October and replaced with Elliott Hill, effective October 14. Given the CEO change, the company has decided to withdraw its full-year guidance and intends to provide quarterly guidance for the balance of the year, executives said.
Ben Maiden
Ben Maiden is the editor-at-large of Governance Intelligence, an IR Media publication, having joined the company in December 2016. He is based in New York. Ben was previously managing editor of Compliance Reporter, covering regulatory and compliance...
