Informed by its engagements with portfolio companies in carbon-intensive sectors and other key stakeholders, State Street’s “Guidance on Disclosure Expectations for Effective Climate Transition Plans” outlines the core disclosure criteria State Street expects companies that have adopted a climate transition plan to address. It may vote against directors of companies in a “relevant sector” (as defined by the IIGCC Net Zero Framework) that “fail to implement and communicate effective oversight of climate transition risks applicable to that company and fail to demonstrate responsiveness to us and sufficient disclosure following engagement.”
The guidance also reiterates (p.20) State Street’s lack of support for say-on-climate proposals based on concerns about unintended consequences (including reduced director accountability) and its approach to say-on-climate shareholder proposals, which is consistent with its approach to climate-related shareholder proposals generally.