In the news: ‘Climate-related proxy resolutions call for evidence of follow-through’
Proxy season is underway. Here is the latest Say on Climate news from Environmental Finance, Reuters, Green Biz and more.
From discussions of a mandatory Say on Climate vote to climate transition plans topping shareholders’ concerns this proxy season, here is the latest news on Say on Climate:
French regulator says it would back Say on Climate based on CSRD reports
Environmental Finance, 21st March 2024
As reporting frameworks become clearer, French legislators may yet introduce a mandatory Say on Climate vote, reports Environmental Finance. While it may be too soon to say, the publication details the news that French regulator Autorité des Marchés Financiers (AMF) would support a requirement for companies to provide shareholders with a vote on audited sustainability reports if developed in line with the Corporate Sustainability Reporting Directive (CSRD).
Big oil’s climate planning not good enough, investor group says
Reuters, March 27th 2024
A Climate Action 100+ report assessing the low-carbon transition plans of 10 of Europe’s and North America’s biggest listed oil and gas companies found that plans are not adequate enough to assess risks, reports Reuters. While European companies outperform their US peers, organisations across the board are ‘alarmingly unprepared’. The Net Zero Standard for Oil & Gas framework by the independent Transition Pathway Initiative (TPI) Centre was utilised to conduct the report, which you can read more about here.
How investors strengthened engagement opportunities for Orica in 2023
Climate Action 100+, 28th March 2024
At its November 2023 AGM, mining and infrastructure giant, Orica, presented shareholders with a Say on Climate vote that received 92% support from investors. Climate Action 100+ says that Orica has made significant progress on its climate ambition and performance over the past year. Not only has the company announced a new target for reducing overall operational Scope 1 and 2 emissions (by at least 45% by 2030 from 2019 levels — an uplift of 40%), but they have also expanded its existing net zero 2050 ambitions to include all material Scope 3 emissions.
Large corporations face increasing calls for follow-through on climate commitments
Green Biz, April 1st 2024
As the 2024 proxy season gets into full swing, an increasing number of shareholder resolutions at large public companies are honing in on the climate crisis, reports Barbara Grady for Green Biz. “Many of this year’s climate-related proxy resolutions say, essentially, “Show us”,’ she writes. Amongst climate-related proposals, transition planning is at the top of the agenda as shareholders who want their say on climate ask for evidence companies are following through on their commitments.
SEC rule to shine light on climate-juiced disasters
E&E News by Politico, 22nd March 2024
The SEC will require companies to report more on losses dealt by extreme weather, reports E&E, giving investors and the public an insight into how a company is being impacted by climate change; this could enable investors to make better financial decisions when weighing up the climate-related fiscal risks implicated in their investments. E&E says this provision, which focuses on companies’ exposure to hurricanes, wildfires, drought, extreme heat and other disasters, is amongst the SEC’s most critical because of the detailed audited information it will produce about how climate change affects a company’s bottom line.
More recent news for those interested in Say on Climate:
- Bloomberg — Shell starts appeal of Dutch court order for fast emissions cuts
- Vox — Why fossil fuel producers are oddly optimistic in the climate era
- The Logic – As SEC and global standards group split on climate, will Canada have to choose a side?
- Investment Magazine — Investors ease up on climate change pressure, say company directors
- Financial Times — Time for investors to turn up the heat on climate governance
- Reuters — CalPERS says Exxon should drop lawsuit against climate-conscious investors
- Markets Insider — Big oil criticized for falling short of climate goals
- H&F blog – Could women investors swing the balance in the fight on climate change?
- Business Green — How Patagonia and Seventh Generation include banks in their climate action plans
- Financial Times – US investment funds pull $13.3bn from BlackRock in anti-ESG investment campaign