In the news: ‘Investors expect boards to deliver credible climate transition plans’

Stay up to date on Say on Climate news with articles from the Financial Times, Responsible Investor, ESG Clarity and more.
20 February 2024

From activist investors facing up to an oil giant to a report explaining how to spot the red flags in a company’s climate transition plans, here is the latest news on Say on Climate.

The Financial Times, February 7th, 2024

Climate reporters at the FT summarise Exxon’s lawsuit against the shareholder activist group, Follow This. Activist investors like Follow This hold shares in major companies and push for credible climate transition plans from within. Although Follow This holds small investments in Exxon, they make it easier for big investors to co-file along with them on climate. The FT describes recent events as a showdown between the oil giant and the climate-forward investment group, describing the case as “a new flank in a broader conflict over ESG investing.” 

ExxonMobil legal battle
Credit: Tingey Injury Law Firm on Unsplash

Responsible Investor, February 13th, 2024

France’s financial regulator, the AMF, has published climate transition plan guidelines to support credible transitions in line with the EU’s Corporate Sustainability Reporting Directive, reports Fiona McNally at Responsible Investor. Plans must clearly state how a company will reach climate neutrality by 2050 and outline how they will reduce reliance on fossil fuels. 

AMF investor sustainability reporting
Credit: Wikmedia Commons

ESG Clarity, 31st January, 2024

Reclaim Finance, an NGO campaigning for financial services to support the transition away from a reliance on oil and gas, has released a new report: Corporate Climate Transition Plans: What To Look For. Reporting on it, Christine Dawson from ESG Clarity highlights the red flags investors should be wary of in corporate transition plans. From inconsistent targets to a lack of advocacy activities to back up its goals, this article touches on themes including biodiversity and a just transition; the role of standardised transition plans; and how reporting can support an effective plan. 

climate transition plan red flags
Credit: Carson Masterson on Unsplash

ESG Today, January 31st, 2024

Mark Segal at ESG Today reports on a new study developed by professional services and solutions provider, WTW. In the organisation’s fourth annual Report on ESG Metrics in Executive Incentive Plans they reviewed the public disclosures of over 1100 listed companies in research that spanned across North America, Europe and Asia Pacific. The report found that companies spanning all of these global markets are increasing the use of ESG factors in their executive compensation programs. 

climate transition plan ESG metrics
Credit: Yibei Geng on Unsplash

The Globe and Mail, February 8th, 2024

Canadian newspaper, The Globe and Mail, reports that a review of voting records of 35 public pension plans and private-sector asset managers showed shareholders often fail to bolster climate-related proposals. The review showed 15 firms voted in support of fewer than half of shareholder proposals faced in 2023. Of the other 25 investors, 14 voted for at least 75% of the climate proposals they considered. Votes were filed at 21 companies and involved corporate disclosure of climate risks and opportunities or the endorsement of climate-related policies.

Canada pension shareholder proposal
Credit: PiggbyBank on Unsplash

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20 February 2024