What lessons can we learn from the resolution of climate change in 2021?

Over the last six years, the surge in cooperative campaigns on climate issues has been a strong trend for shareholder activists. As the 2022 season is in full swing and many “climate opinions” resolutions have been taken, most of which have been submitted by shareholders outside the board of directors, a recent report by the Institute Shareholder Services (ISS) states. 2021.

In 2021, as in 2020, the majority of E & S-related shareholder resolutions will be related to climate change and / or climate lobbying, with more than half of these in the financial, oil and gas sectors, and mining. Submitted in the sector. The United States is central to climate-related shareholder resolutions, which were identified in 14 markets in 2021 (Australia, Canada, Denmark, Finland, France, Japan, New Zealand, Norway, South Africa, Spain, Sweden, Switzerland. , UK and USA compared to 12 in 2020). Eighty-eight shareholder resolutions on this subject were submitted to vote in 2021 against 65 in 2020.

Resolutions calling for the publication of emission reduction targets accounted for the majority of such resolutions in 2021. Globally, the average level of support received for climate resolutions reached an impressive 42.1% in 2021, compared to 29.2% in 2020. “Sayon Climate” received an average of 32.7% support in 2021.

A new feature in 2021 is that it was included in the agenda of the General Assembly of climate-related resolutions proposed by business owners, triggering a vote on a transition plan or climate strategy. This was usually management’s reaction to a shareholder initiative calling for investors to have similar resolutions or shareholder involvement. In total, of the 26 resolutions in the world, 19 were European companies, 3 were North America, 3 were South Africa, and 1 was Australia. On average, we received 93% support in 2021. So far in 2022, most of the similar resolutions have been implemented by European companies.

Many investor initiatives related to the “Net Zero Emissions” goal emerged in 2021 to advise both investors and businesses on plans to reduce CO2 emissions.2 It also provides tools for setting targets for the “less than 1.5 ° C” trajectory displayed on COP26. In this way, the Climate Action 100+ Net Zero Company Benchmark, launched in March 2021, assesses corporate performance in relation to the three main objectives of the initiative: emission reduction, governance and transparency. To do. In September 2021, the Group of Institutional Investors on Climate Change (IIGCC), a coalition of investors representing over $ 10 trillion in assets under management, released a report detailing expectations for oil and gas companies. Also note that in October 2021, the Task Force on Climate Related Financial Disclosures (TCFD) released a guide to help companies publish their goals and information on climate transition plans and estimate their impact. please give me.

Already, the number of “Sayon Climate” resolutions presented by the company’s management in 2022 is higher than for the full year 2021 (26 for the full year 2021 vs. 36 to date in 2022. ).