Preparing for the 2023 AGM season in the UK

Our AGMs Update 2023 covers key developments and market practice relevant for UK-listed companies in 2023, including climate change and other ESG issues.

Some key ESG highlights:

• When it comes to director elections, companies should note that investor support for individuals may be influenced by the approach to climate and other governance issues. In addition, investor guidance continues to ask companies to consider the overall composition and diversity of the board.
• In 2022, more “Say on Climate" resolutions were passed than in 2021, although with lower average levels of approval. All companies should focus on effective transition planning as new guidance emerges, regardless of whether these plans are put to an AGM vote.
• The return to in-person AGMs in 2022 brought with it heightened activism and physical protests at the meetings of some energy companies and banks. Companies should consider the risk of disruption in 2023 and whether to update any of their practical arrangements accordingly. 
• New Financial Reporting Council (FRC) guidance encourages effective engagement. The FRC is also reviewing company responses where there are significant dissent votes (20%+) against AGM resolutions.

See also our publication Investors call for Say on Climate votes at 2023 AGMs.