Passing the Baton: Shareholder Resolutions & their Contribution to Investor Climate Pledges

Passing the Baton: Shareholder Resolutions & their Contribution to Investor Climate Pledges

New report shows growth of “climate target-setting” in shareholder resolutions & their potential to cascade investors’ climate pledges to companies

 Key figures:

  • We analysed over 7,500 resolutions and identified 500 as climate related
  • From 2006-2019, over 150 shareholder resolutions involving some form of requirement to set climate target or a related business plan were introduced
  • Explicit references to the Paris Agreement are on the rise, with 11 resolutions pushing for consistency with the climate goals of the Paris Agreement
  • For the first time, in 2018, 3 companies subsequently adopted these targets. While the analysis does not prove causality, it represents a first step in understanding the potential impact of engagement.

Key takeaways:

  • These figures show the potential of resolutions to turn words into actions, “passing the baton” from investors who committed to aligning their portfolio with Paris goals to their investees
  • They illustrate the need to further organize and engage in collective shareholder actions, such as the Climate Action 100+ coalition
  • They also reveal the gap: among 500 climate-related resolutions, only 11 resolutions requested consistency with a 2°C pathway or better. Given the recent investor pledges, we expect Paris-aligned resolutions to rise dramatically in the next few years

Please see here for the full report.

 

2020-01-06T11:52:47+00:00