Engagement with focus company executives and board members is spearheaded by a lead investor or investors, who work cooperatively with a number of collaborating investors. Investors can also engage with focus companies on an individual basis, but are required to: liaise with relevant network staff and/or lead investors to ensure engagement priorities and ambition are aligned with the goals of the initiative, as well as with the overall collaborative approach (as appropriate in each sector). Engagement is centred around the three asks of the initiative, and a central message of each engagement is that inaction by companies following engagement may result in investors taking further action.
When signing on to the initiative, investors are asked to nominate which focus companies they wish to engage with and whether this is as a lead investor, collaborating investor or in an individual capacity (or alternatively join the initiative as an asset owner supporter that does not participate directly in engagements but request that their investment managers or service providers responsible for engagement join the initiative). A set of principles and processes is then applied to identify which investors should lead engagement with companies on the Climate Action 100+ focus list. These principles include consideration of previous history of engagement with the focus company, geographic proximity, investor capacity and equity stake. The initiative aims to ensure asset owners and asset managers are among the investors signed on to each engagement.
Signatories participating in focus company engagements will represent only the assets over which they have a fiduciary duty. A signatory will not claim to represent other investors, or their assets under management, who may also be involved in a company engagement without first obtaining explicit permission. This will not preclude an investor referring to the total number of signatories and/or represented assets of the full initiative.
Lead investors, and those engaging companies individually, must disclose through a bi-annual survey their engagement plans and priorities over the coming 12 months to ensure strong and concerted action. The initiative also conducts progress reporting and is working to publicly benchmark all 167 focus companies. Signatories to Climate Action 100+ will not discuss or exchange material non-public information with other signatories, the investor networks or the Climate Action 100+ Steering Committee. Information shared will only be for the purpose of facilitating the collaborative goals of Climate Action 100+ and is shared on a confidential basis. If, during the course of engagement, a signatory inadvertently discovers information believed to be material nonpublic information, then the usual requirements under the relevant securities laws will apply. Information sharing in Climate Action 100+ is facilitated primarily by the coordinating investor networks.
Company engagement strategies are driven by a range of factors, including the profile of the company and industry sector, the company’s approach to climate change, its responsiveness to engagement, the lead investor’s active ownership approach and the regional context. In many cases, multiple investors may be working on engagement with a company. They may choose to engage by:
- Holding meetings with companies
- Conducting investor roundtables
- Asking a question at a company earnings call or Annual General Meeting (AGM)
- Making a statement at a company AGM
- Writing a public letter to the company
- Supporting shareholder resolutions on climate change risks and opportunities
- Voting for the removal of directors who have failed in their accountability of climate change risk
- Voting against reports, accounts and company led resolutions
- Making joint statements with the company
Each signatory will have the responsibility of obtaining its own legal advice pertaining to its participation in Climate Action 100+. In conducting their engagements, investors participating in the initiative will ensure they are in compliance with regulatory requirements related to collaborative investor engagement activities in the jurisdiction where engagement is taking place. In addition to engagement through Climate Action 100+, many investors will engage directly with the same companies through their own organisation’s stewardship agenda.
REGIONAL ENGAGEMENT WORKING GROUPS
Regionally-focused working groups each support engagement with a subset of focus companies to provide participating investors with resources and help ensure that engagements are effective. The working groups are coordinated by investor networks that support the initiative and provide investor signatories with periodic updates. They also coordinate a global forum on engagements across the regions. Global meetings are held on a biannual basis and focus on progress in different regions and sectors.
|Asia||North America||Australia/New Zealand||Europe||Multi-region|
|AIGCC-PRI Asia Engagement Group|
33 company engagements
33 company engagements
15 company engagements
47 company engagements
42 company engagements