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.