With the start of the 2024 proxy season, Climate Action 100+ investors are highlighting key shareholder proposals at the initiative’s high-emitting focus companies to inform other investors about priority votes and other issues as they manage the material financial risks of climate change.
Signatories of Climate Action 100+, the world’s largest investor engagement initiative on climate change, engage with companies and evaluate climate-related financial risks as part of a responsible investment approach to protect and enhance long-term value; therefore, fulfilling their fiduciary duties. This includes encouraging greater action by heavy emitters to align their businesses with the goal of reaching net zero emissions by 2050 or sooner. All investor engagements are focused on the initiative's three common goals: cutting greenhouse gas emissions, improving corporate climate governance, and strengthening climate-related financial disclosures.
Seeking to increase long-term shareholder value, the initiative flags key shareholder proposals and other votes for investors to consider as they decide how to vote during proxy seasons. This year includes calls for companies to report on climate lobbying practices, the impact of climate transition plans on asset requirement obligations, and progress on decarbonisation goals.
As of Thursday, 25th April, the following 2024 proxy season votes have been flagged on the Climate Action 100+ website:
Berkshire Hathaway – Proposal requesting that the Board of Directors disclose in a consolidated annual report GHG emissions data by scope, as well as progress toward its net-zero decarbonization goal, for Berkshire Hathaway Energy. Filed by Illinois State Treasurer.
Imperial Oil – Proposal regarding a report on the impact of climate transition scenarios on asset retirement obligations. Filed by Athabasca Chipewyan First Nation on behalf of Leanne Baer.
PACCAR Inc. – Proposal regarding a report on climate-related policy engagement. Filed by Calvert Research and Management and the Comptroller of the City of New York.
Rio Tinto plc/Rio Tinto Ltd – Sarasin & Partners LLP to vote Abstain on Resolution 1 – Receipt of the 2023 Annual Report; abstain on Resolution 12 – To re-elect Simon Henry as a Director, and abstain on Resolution 19 – Reappointment of the Auditor
Suncor Energy – Proposal to consider a shareholder proposal for Suncor to disclose audited results assessing a range of climate transition scenarios. Filed by Investors for Paris Compliance.
Equinor ASA – Proposal to consider a shareholder proposal requesting an updated strategy and capital expenditure plan. Filed by Sarasin & Partners LLP, and three other Climate Action 100+ signatories.
Shell plc – Proposal to consider a shareholder resolution to align medium-term emissions reductions targets covering the greenhouse gas (GHG) emissions of the use of its energy products (Scope 3) with the goals of the Paris Climate Agreement. Filed by 27 Institutional Investors.
NextEra Energy Inc. – Proposal regarding a report on climate lobbying. Filed by CCLA Investment Management Limited, Mercy Investment Services and RPMI Railpen.
Note: The Climate Action 100+ flagged votes list will be updated regularly throughout this year’s proxy season. The list is informed by more than six years of engagement history with the relevant focus companies.
“The flagging process signals to investors proposals which may be important to their own goals in addressing material risk due to climate change,” said Kirsten Spalding, vice president of the Ceres Investor Network at Ceres, a founding member of Climate Action 100+. “Climate risk is financial risk and investors are taking the necessary steps to reduce that risk in their portfolios and for their clients. They have a fiduciary duty to do so. This is why they are evolving in their asks of companies to report on lobbying activities and put in place corporate climate transition action plans to reach their decarbonisation goals.”
Investors are increasingly utilising the shareholder proposal process to advance climate-related goals. Analysis by Ceres, whose Investor Network members include Climate Action 100+ signatories, has found that investors in North America have filed a record 263 climate-related shareholder resolutions this year. In 2023, there was a record 259 climate-related resolutions filed.
Investors look for Climate Action 100+ focus companies to advance on areas of the CA100+ Benchmark agenda where proposals receive significant support. For example, a proposal filed by Amundi Asset Management at Martin Marietta Materials, Inc, and flagged by the initiative, received 32.8% support during the 2023 proxy season. The company recently announced a commitment to set targets through the Science Based Targets Initiative.
Editor’s Note:
The flagged votes process is designed purely for information-sharing purposes and to highlight key votes at the initiative’s focus companies. It is at the discretion of each investor signatory to determine how they vote. Climate Action 100+ does not require or seek collective decision-making or action to acquiring, holding, disposing, and/or voting of securities. Signatories are independent fiduciaries responsible for their own investment and voting decisions.
Read Climate Action 100+’s full disclaimer here.
About Climate Action 100+
Climate Action 100+ is the world’s largest investor engagement initiative on climate change. It involves over 700 investors focused on ensuring 170 of the world’s biggest corporate greenhouse gas (GHG) emitters take the necessary actions to align their business strategies with the goals of the Paris Agreement. This includes improving corporate governance of climate change, reducing GHG emissions, and strengthening climate-related financial disclosures.
The 170 focus companies include the initial 100 ‘systemically important emitters’, identified with the highest combined direct and indirect GHG emissions, and additional companies selected by investors as critical to accelerating the net zero transition.
Launched in 2017, Climate Action 100+ is coordinated by five investor networks: Asia Investor Group on Climate Change (AIGCC); Ceres; Investor Group on Climate Change (IGCC); Institutional Investors Group on Climate Change (IIGCC) and Principles for Responsible Investment (PRI). These organisations, along with investor representatives from AustralianSuper, Afore Sura, BNP Paribas Asset Management, California Public Employees’ Retirement System (CalPERS), GAM Investments, Generali Insurance Asset Management (Generali Group) Franklin Templeton, Phoenix Group and QIC form the global Steering Committee for the initiative. Follow us on Twitter: @ActOnClimate100.