Investment firms that voted their clients’ proxies to increase transparency around climate risk–then reversed course last year when management at Exxon and Chevron opposed such measures–found themselves in an awkward position. Do they agree that climate risk is material and must be disclosed, or not? Is it material at some companies but not at competitors? Investment firms managing trillions of dollars in assets will face similar shareholder resolutions in the next month. Many of their end clients are demanding a consistent vote on climate resolutions–recognising both the scientific consensus around climate change and the heightened concern around related portfolio risk.
…Preventable Surprises–along with allies at Boston Common Asset Management, Ceres, ShareAction and others–is calling for large investors to vote in favour of resolutions that push companies to plan for a 2°C-aligned economy. We are also asking investors to declare their voting intention to encourage others to follow.
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