This year's proxy season has arrived and, with it, another record-breaking wave of climate change activism. In total, 45 resolutions have been filed by investor groups, dwarfing last year's previous high of 36. The new crop of resolutions isn't just greater in number. The resolutions are also more ambitious than before and have greater support, as mainstream investors and stock-pickers throw their considerable weight behind the activist agenda. "More and more investors are paying attention to climate risks and opportunities," says Rob Berridge, manager for investor programs with CERES in Boston.
Most filings call for better information on the risks companies face and tend to target industries that are either big emitters of greenhouse gases or are seen as most exposed to the impact of climate change. But companies who believe they are safely below the activists' radar might be in for a surprise–the end goal is routine disclosure of climate-related risks and activities across entire industries.
Climate-related activism has become so mainstream–filers now include pension funds, foundations and labor funds, alongside the environmental groups that filed the first such resolutions 17 years ago–and the movement's concerns have become so widely accepted, that a major tipping point has already been reached, says Doug Cogan, director of climate change research with shareholder services firm ISS Proxy. Increasingly, he says, the targets of climate change resolutions simply agree to address investors' concerns before the vote takes place. In both 2005 and 2006, there were more of these withdrawals than votes. This year there have already been 15 resolutions withdrawn because companies agreed to take action prior to a vote. "But if that's the tipping-point, then the moment the seesaw touches down will be when this kind of information is routinely included in annual reports and securities filings. At the moment, investors still have to file to produce action, so we're not there yet," Cogan says.
Continue Reading for Free
Register and gain access to:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.