As investors prepare for the 2022 proxy season amid a mounting climate crisis, we released guidance for investor engagement with companies on governance of climate risk.
Investors and proxy advisors can use this report for directly engaging with portfolio companies on the risks and opportunities emerging in the transition to a net zero emissions economy and to inform their voting decisions on electing board directors.
Ceres’ release of the Guidance follows an historic 2021 proxy season in which investors voted out some directors for not meeting their corporation’s climate goals, most notably at ExxonMobil, where three dissident board members were elected. More recently, a growing number of asset managers have stated they are willing to vote against re-electing corporate directors who fail to deliver on climate governance.
Investors increasingly recognize that strong corporate climate governance is needed if we are to limit average global temperature rise to 1.5 Celsius and prevent the most catastrophic, irreversible effects of climate change.