"Say on climate" votes still high on the AGM agenda

Large investors and their advisory groups are increasingly expecting companies to prioritise ESG considerations. Influential investors, such as BlackRock, are this year calling on companies to disclose a climate plan for how their business model will be compatible with a net zero economy and how this plan is incorporated into the company’s long-term strategy and reviewed by the board of directors. If progress in 2021 is insufficient or too slow, they have threatened that they may vote against directors and support shareholder-led climate resolutions, including calls for a "say on climate" vote at AGMs.

Companies have two choices when it comes to climate activism: take a proactive approach to addressing concerns or wait to react to proposals put forward by investors. 

In our client briefing "Hotting up - Investor activism on climate and ESG", we explore some key issues for companies to consider when faced with a "say on climate" vote or other climate-related resolution.