Companies And Investors Are Failing to Address Climate Change

1 Growing recognition of the need for every company to publish a climate transition action plan:
  • G30 report co-chaired by Mark Carney and Janet Yellen says: “At a minimum, companies will have to set out targets for their Scope 1, 2 and 3 emissions, and set credible milestones.”
2 Companies are failing to show how they will make the transition to net zero:
3 Investors are failing in their duty to hold companies to account:
  • Fewer than 100 companies globally face their shareholders on climate change each year, and this is largely ad hoc. This must be the standard for every company, every year.
  • The biggest asset managers have appalling voting records on the relatively few climate resolutions that get filed

Companies must publish climate transition action plans and be accountable to shareholders on an annual basis

1

Companies must have a clear action plan, because greenhouse gas emissions will:

  • Be taxed and regulated by governments in the future 
  • Increase their cost of capital
  • Damage their competitive position
  • Harm customer relationships
  • Undermine employee moral and recruitment

2

A shareholder vote on climate transition plans can help ensure good plans are produced and delivered on.

3

Aena was the first company to put its climate transition action plan to a shareholder vote. They have been joined by a growing number of other major companies inlcuding Unilever, Glencore and Moody’s (see the latest list here). This sets a precedent for other companies.

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