Shareholder Voting on Climate Transition Action Plans
To manage the transition to net zero, companies need:
1. Annual disclosure of emissions
2. A plan to manage those emissions
3. An AGM vote on this plan
Make a Public Statement of Support
“We [Asset Owner] encourage all listed companies to submit a Climate Transition Action Plan at their AGM for a shareholder vote. Where companies won’t do so voluntarily we expect our Asset Managers to file AGM resolutions (whenever they have sufficient votes) requiring such votes.”
“We [Asset Manager] encourage all listed companies to submit a Climate Transition Action Plan at their AGM for a shareholder vote. Where companies won’t do so voluntarily we will vote for and file AGM resolutions (whenever we have sufficient votes) requiring such votes.” .
“We [Company] commit to submit a Climate Transition Action Plan at our AGM for an annual shareholder vote. We welcome the accountability this brings and encourage other companies and investors to adopt this practice.”
“We [Proxy Adviser] believe resolutions calling for a shareholder vote on companies’ Climate Transition Action Plan are reasonable and in the interest of shareholders. We will generally recommend support for such proposals.” .
Please state on your website “We support the Say On Climate initiative” and provide a link to www.sayonclimate.org
U.N. climate envoy Carney backs annual investor votes on company climate plans
LONDON/BOSTON (Reuters) 9 November 2020 – U.N. climate envoy Mark Carney on Monday backed a push by investors to force companies to submit their climate change strategies to annual shareholder votes, saying such a mechanism could improve oversight of pledges to slash greenhouse gas emissions.
Carney, who took a U.N. climate finance role after stepping down as Bank of England governor in March, said investors could have an automatic advisory vote on a company’s climate plans, in the same way they are involved in pay discussions.
“Rather than have authorities be overly prescriptive on plans, it may be desirable to have investors have a say on transition”
“This would establish a critical link between responsibility, accountability and sustainability” .
U.N. Secretary-General Antonio Guterres, who has made climate change a signature issue of his tenure, also urged investors to push companies harder by “systematically supporting climate resolutions”.
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.”