Both the WSJ and Responsible Investor (RI) reported on the status of TCI’s Say-on-Climate campaign, which was launched last year (see our prior report here). According to RI, at least 15 companies have voluntarily implemented some form of the shareholder advisory vote (see our recent "Say-on-Climate" reports here and here). As You Sow reportedly plans to file “hundreds” of such proposals within the next two years at companies that don’t voluntarily adopt the proposal. ISS identified 13 such proposals filed by shareholders, in addition to 2 put on the proxy by company management globally.
Notably, State Street is not in favor of a shareholder vote on companies’ carbon emissions plans (one aspect of the Say on Climate vote) for companies with “strong environmental track records,” which – along with other investor inputs - appears to have influenced the campaign’s change in approach in the U.S. such that it will only recommend votes against companies’ emissions plans if a shareholder “finds it deficient”:
State Street generally supports Say on Climate’s aim of requiring companies to disclose their emissions and to be accountable to reduction targets, according to Mr. [Ben] Colton [SSGA global co-head of asset stewardship]. But subjecting such policies to shareholder votes could “could have unintended consequences, serving as a rubber-stamping mechanism to insulate directors,” he said.
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f votes on climate plans become routine, investors may become passive and approve practices of substandard companies, said Mr. Colton, who prefers holding such companies accountable by voting out their board directors.
Vanguard indicates it will evaluate each proposal on a case-by-case basis.
See “CP Rail Supports an ESG-Related Shareholder Proposal Which Includes Annual Advisory Vote by Shareholders on a Climate Action Plan” (Norton Rose Fulbright) and additional information & resources on our Shareholder Proposals and Proxy Season 2021 pages.