Investors vote in favor of climate risk transition plan resolutions in line with ISS recommendation and against board recommendations
Written
27.04.2023
Author
Attracta Mooney and Aime Williams
Source
Financial Times
Social
More investors, including big and influential ones, are increasingly demanding more actual climate change efforts and plans. The recent investors’ votes in favor of climate risk transition plan resolutions from Goldman Sachs, Wells Fargo and Bank of America are a testimony to this trend. Their demand seems persistent since it goes against the boards’ recommendation to vote against the resolution. This comes in line with one Institutional Shareholder Services (ISS) recommendation published in January 2023: “Vote case-by-case on shareholder proposals that request the company to disclose its upcoming/approved climate transition action plan and provide shareholders the opportunity to express approval or disapproval of its GHG emissions reduction plan...”.
A significant number of investors have supported resolutions calling for climate change plans from major banks, including Goldman Sachs, Wells Fargo, and Bank of America. Despite the boards of these banks recommending against the proposals, three in ten voting shareholders, including major investors, backed the resolutions. The level of support reflects the increasing demands on banks regarding their financing of carbon-intensive companies and projects. The resolutions received backing from influential investors such as Norway's oil fund, Legal and General Investment Management, and Institutional Shareholder Services. While the votes did not achieve majority support, shareholder advocacy groups were encouraged by the level of support. Additionally, other environmental, social, and governance (ESG) resolutions generally received lower levels of investor support. The pressure on banks over their climate financing is expected to continue, and the development of transition plans by banks is seen as crucial in addressing these concerns.
A significant number of investors have supported resolutions calling for climate change plans from major banks, including Goldman Sachs, Wells Fargo, and Bank of America. Despite the boards of these banks recommending against the proposals, three in ten voting shareholders, including major investors, backed the resolutions. The level of support reflects the increasing demands on banks regarding their financing of carbon-intensive companies and projects. The resolutions received backing from influential investors such as Norway's oil fund, Legal and General Investment Management, and Institutional Shareholder Services. While the votes did not achieve majority support, shareholder advocacy groups were encouraged by the level of support. Additionally, other environmental, social, and governance (ESG) resolutions generally received lower levels of investor support. The pressure on banks over their climate financing is expected to continue, and the development of transition plans by banks is seen as crucial in addressing these concerns.