The global investor initiative Climate Action 100+ involves more than 450 investors with combined assets under management in excess of $39 trillion. Investors engage with 100 of the largest corporate greenhouse gas (GHG) emitters as well as with 60 other influential companies positioned to drive the transition to a net zero emissions economy. The initiative’s focus companies are collectively responsible for more than two-thirds of global GHG emissions and through engagement investors already have achieved emissions reductions commitments from numerous companies, including BHP Billiton, Daimler, Duke Energy, Heidelberg Cement, Nestle and VW.
The Climate Action 100+’s engagement agenda includes three main goals: improving governance, improving disclosure of climate risk and reducing GHG emissions across supply chains in alignment with the Paris Agreement goals. Cutting across all three of these goals is the aim to build company support for strong public policy frameworks to accelerate the transition to a low-carbon economy.
Leading investors worldwide are starting their third year of company engagements through Climate Action 100+. Many productive engagements occur between investors and company boards or C-suite level management. However, when companies have lagged behind their peers and failed to engage productively, Climate Action 100+ members have filed shareholder resolutions.
Resolutions filed during the 2020 proxy season by Climate Action 100+ signatories fall under six broad themes:
Independent Board Chairs: Investors request that companies separate the roles of CEO and Board Chair to drive companies’ strategic transformation to succeed in a carbon-constrained future. (Filed with Dominion Energy, Duke Energy, Exxon Mobil, and Southern.)
Paris-aligned Transition Strategy: Investors look to understand whether and how companies are transforming their business strategies and setting ambitious GHG emissions reduction targets. (Filed with Chevron, Devon Energy, Exxon Mobil, and Marathon Petroleum.)
Stranded Assets from Natural Gas Infrastructure: Investors ask whether, as companies set targets for reaching net-zero emissions by 2050, capital spending on new natural gas infrastructure creates stranded assets. (Filed with Dominion Energy and Southern.)
Disclosure of Direct and Indirect Lobbying: Investors request that companies disclose their climate and energy-related lobbying, including that done through their trade associations. (Filed with Caterpillar, Duke Energy, Exxon Mobil, General Motors and others.)
Lobbying for Policy Framework Alignment with the Paris Agreement: Shareholders request that lobbying align with the goals of the Paris Agreement. (Filed with Chevron, Delta Air Lines, Exxon Mobil and United Airlines.)
Environmental, Social and Governance (ESG) Metrics in Executive Compensation: Investors ask boards to link executive compensation to ESG performance. (Filed with Chevron, Delta, Exxon Mobil and United Airlines.)
Climate Action 100+ investors recognize the value of shareholder proposals in influencing corporate management to take needed actions to mitigate risk, improve governance and take steps that will ensure long term value in a world facing the challenges of climate change.
Morgan Lamanna
Senior Manager, Investor Engagements, Ceres
Rob Berridge
Director, Shareholder Engagement, Ceres