Business groups block ASX plan to expand diversity reporting
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The news: At least four key business groups will reportedly vote against the ASX Corporate Governance Council’s proposed diversity reporting rules, effectively killing off any chance of consensus on the plan, according to media reports.
Council members were asked to formally respond by Tuesday, with at least four key business groups confirming they would vote against proceeding, the reports say.
The Business Council of Australia, the Australian Institute of Company Directors, the Governance Institute of Australia, and the Australasian Investor Relations Association confirmed their opposition to The Australian Financial Review.
An unnamed source told the paper of at least one other key group also planning to vote no.
The context: The proposed changes would require boards to report their diversity characteristics beyond gender, including sexuality, age, Indigenous heritage and disabilities.
Investor and superannuation groups backed the changes, but business leaders argued they imposed unnecessary compliance burdens.
The backlash has grown amid a global pushback against diversity measures, intensified by Donald Trump’s policies in the US.
Critics, including investor John Wylie, condemned the reforms as a massive overreach and an invasion of privacy.
The ASX, a council member, said any changes must ensure clarity and simplification.
With no broad agreement, the council is expected to pause the process.
The Australian Council of Superannuation Investors has been a key supporter of the reforms, and at a meeting on Friday its CEO, Louise Davidson, reportedly questioned whether the group would remain on the council if the changes did not proceed, four sources who attended told the AFR.
Council chair Elizabeth Johnstone declined to comment to the AFR.
The sources: The Australian Financial Review , The Australian
