Climate Action 100+ flagged shareholder votes

Climate Action 100+ flags key shareholder proposals and other votes for investors to take into consideration during proxy season

The Climate Action 100+ initiative flags shareholder proposals and other votes for investors to take into consideration during proxy season. Six out of 14 flagged shareholder proposals received majority votes at some of the world’s largest GHG emitters during the 2021 proxy season, demonstrating the value of this tool for Climate Action 100+ signatories. 

While Climate Action 100+ does not take a formal position on shareholder voting, it recognises that shareholder proposals and other votes are a powerful signal and a useful engagement tool. To ensure that signatories have an opportunity to properly consider resolutions that are aligned with the goals of the initiative, Climate Action 100+ may flag on this page, as well as in other communications, shareholder or management proposed votes at Climate Action 100+ focus companies in accordance with the initiative’s vote flagging process.  

Climate Action 100+ does not require that investors support specific shareholder resolutions or other votes. Investor signatories vote for shareholder proposals in their individual capacity and not on behalf of the initiative. 

THE FOLLOWING SHAREHOLDER PROPOSALS HAVE BEEN FLAGGED AS OF 15 April, 2022:

 

Berkshire Hathaway, TCFD Reporting. Filed by Brunel Pension Partnership Limited represented by EOS at Federated Hermes, Caisse de Dépôt et Placement du Québec, California Public Employees’ Retirement System, and State of New Jersey Common Pension Fund.See supporting exempt solicitation here.
Boeing Co., Report on Alignment with Climate Action 100+ Benchmark Net Zero Indicator. Filed by As You Sow. Supporting exempt solicitation here.
ExxonMobil, Report on Climate Change Financial Risks. Filed by Christian Brothers Investment Services. Supporting exempt solicitation here.
Imperial Oil, Align Capital Expenditure with the IEA Net Zero Scenario. Filed by Bâtirente with the support of Æquo Engagement Services, Inc.
Phillips 66, Adopt GHG Reduction Targets. Filed by Follow This.See supporting exempt solicitation here.
Valero Energy, Adopt GHG Reduction Targets. Filed by Mercy Investment Services, Inc. See supporting memo here.
THE FOLLOWING OTHER VOTES* HAVE BEEN FLAGGED AS OF 15 April, 2022:

 

Berkshire Hathaway: California Public Employees’ Retirement System to vote AGAINST two members of the Audit Committee. See investor statement hereand supporting exempt solicitation here.
CRH plc: Sarasin & Partners to vote AGAINST three management proposals being: Financial Statements; Audit Committee Chair; and re-election of the Auditors. See more information, including links to the investor statement and supporting assessment from Carbon Tracker here.
Engie SA: MN to vote AGAINST two management proposals on accountancy grounds: Financial Statements and Reports; and Consolidated Financial Statements. See more information, including investor statement and supporting assessment from Carbon Tracker here. 
Glencore PLC: LGPS Central to vote AGAINST the management proposal to approve the ‘Climate Progress Report’ (Resolution #13). See supporting memo here.
Holcim Ltd:Ethos Foundation to vote AGAINST the management proposal to approve the ‘Advisory vote on Holcim’s Climate Report’ (Resolution #6). See supporting memo here. 
l’Air Liquide S.A.: Trusteam Finance to vote AGAINST on the auditor (resolution #8). See supporting memo and analysis here.
The Southern Company: The Office of the Illinois State Treasurer to vote AGAINST the Board Chair of Southern Company. See investor statement here. 
Volkswagen AG: Church of England Pensions Board to vote AGAINST two management proposals on the grounds of a lack of governance oversight on net zero aligned lobbying disclosure: Approval of the actions of the members of Board of Management and of the Supervisory Board. See more information, including investor statements here.

The list of flagged proposals and votes will be updated on a weekly basis throughout the 2022 Proxy Season. Our latest proxy season news is available here. 

Flagged proposals represent only a subset of climate-related shareholder proposals filed this year. Climate Action 100+ is tracking 39 proposals for the 2022 proxy season at North American Climate Action 100+ focus companies alone. As of 15 April, 22 of those have already been withdrawn after investors reached agreements with companies ahead of a vote, demonstrating how seriously companies are taking such shareholder proposals. To learn more about resolutions at Climate Action 100+ North America focus companies, please watch the 4 April webinar recording here.  

Investors have also submitted four resolutions at European focus companies for review and adoption. Companies have the choice of agreeing to resolution requests, resulting in a withdrawal, or adding the resolution to their AGM agenda for further discussion. As of 8 April, one company has negotiated a resolution withdrawal, with one more pending. 16 resolutions relating to net zero transition plans (nine) or transition progress reports (seven) have been filed at Climate Action 100+ focus companies, also known as ‘Say on Climate’ resolutions.  

The coordinating investor networks of Climate Action 100+ (AIGCC, Ceres, IGCC, IIGCC and PRI) track relevant climate-related votes by region. The following tools are managed by the investor networks and can be used for a variety of purposes during proxy season but are separate and distinct from Climate Action 100+. 

PROXY SEASON ARCHIVE

Explore key shareholder proposals and votes from past proxy seasons.

The following proposals were flagged as of 5 May, 2021:

 

Berkshire Hathaway, TCFD Reporting. Filed by Hermes Investment Management, Caisse de depot et placement du Quebec, and California Public Employees’ Retirement System. RESULT: 28.3% FOR, 60% of non-insider shareholders voted FOR.

Bunge, Report on eliminating deforestation in soy supply chain. Filed by Green Century Capital Management. RESULT: 98.99% FOR (highest-ever recorded vote for a deforestation-related shareholder proposal).

Caterpillar, Report on alignment with Climate Action 100+ Net Zero Company Benchmark indicators. Filed by As You Sow. RESULT: 48% FOR.

Chevron, Report on Climate Change Financial Risks. Filed by As You Sow. RESULT: 47.8% FOR.

Delta Air Lines, Paris-aligned lobbying. Filed by BNP Paribas Asset Management. RESULT: 62.9% FOR. Press release.

Dominion, Independent Chair. Filed by New York City Comptroller’s Office. RESULT: 42.2% FOR.

Duke, Independent Chair. Filed by New York City Comptroller’s Office. RESULT: 35.1% FOR.

ExxonMobil, Paris-aligned lobbying. Filed by BNP Paribas Asset Management. RESULT: 63.8% FOR.

ExxonMobil, Report on Climate Change Financial Risks. Filed by CBIS. RESULT: 48.9% FOR.

General Electric, Climate Action 100+ Net Zero Commitment. Filed by As You Sow. RESULT: 98% FOR. Press release.

General Motors, Climate Action 100+ Executive Remuneration. Filed by As You Sow. RESULT 16.3% FOR.

Imperial Oil, Adopt Net-zero GHG Reduction Targets. Filed by Aequo on behalf of Bâtirente. RESULT: 14% FOR, 59% of independent shareholders voted FOR. Press release.

Phillips66, Paris-aligned lobbying. Filed by California State Teachers’ Retirement System. RESULT: 62.49% FOR. Press release.

United Airlines, Paris-aligned lobbying. Filed by Presbyterian Church (USA). RESULT: 65.4% FOR.

 

The following other votes were flagged by a lead investor as of 5 May, 2021:

 

ExxonMobil: The board refreshment at Exxon, proposed by Engine No.1, was supported by CalPERS and CalSTRS, which both filed letters with the SEC to allow them to share views with other shareholders, as well as leading investors EOS at Federated Hermes, New York City Comptroller’s Office, New York State Common Retirement Fund, LGIM and Aviva Investors. RESULT: Three of Engine No.1’s nominees to the board were elected at its AGM on 26 May – see here for Climate Action 100+ press statement.

 

Caterpillar Inc., Lobbying Disclosure. Filed by SHARE. RESULT: 33.4% FOR. 

Chevron Corporation, Paris-aligned lobbying. Filed by BNP Paribas Asset Management. RESULT: 53.5% FOR. 

Delta Air Lines Inc., Paris-aligned lobbying. Filed by BNP Paribas Asset Management. RESULT: 45.9% FOR. 

Dominion Energy, Inc., Independent Chair. Filed by New York City Comptroller’s Office. RESULT: 46.6% FOR. 

Duke Energy Corporation, Independent Chair. Filed by New York City Comptroller’s Office. RESULT: 40.1% FOR. 

Duke Energy Corporation, Lobbying Disclosure. Filed by Mercy Investment Services, Inc. RESULT: 42.4% FOR. 

ExxonMobil Corporation, Independent Chair. Filed by Olga Monks Pertzoff Trust 1945. RESULT: 32.7% FOR. 

ExxonMobil Corporation, Lobbying Disclosure. Filed by United Steelworkers of America. RESULT: 37.6% FOR. 

Ford Motor Company, Lobbying Disclosure. Filed by Unitarian Universalist Association. RESULT: 20.2% FOR. 

General Motors, Lobbying Disclosure. Filed by New York City Comptroller’s Office. RESULT: 33.1% FOR. 

Southern Company, Independent Chair. Filed by New York City Comptroller’s Office. RESULT: 22.3% FOR. 

United Airlines Holdings, Paris-aligned lobbying. Filed by BNP Paribas Asset Management. RESULT: 31.5% FOR. 

BP, plc, Transition Planning. Filed by Hermes Investment Management. RESULT: 96.4% FOR 

ExxonMobil Corporation, Independent Chair. Filed by The Kestrel Foundation of Maine. RESULT: 40.7% FOR. 

Ford Motor Company, Lobbying Disclosure. Filed by New York City Office of the Comptroller. RESULT: 16.5% FOR. 

General Motors, Lobbying Disclosure. Filed by New York City Office of the Comptroller. RESULT: 29.5% FOR. 

 

*In addition to shareholder resolutions, Climate Action 100+ will continue to pilot the flagging of management proposals and other votes. This may include votes on board directors, auditors, an/or climate transition plans, among others. The process is still under development and is liable to change, however Climate Action 100+ may trial flagging a small number of votes (on a case-by-case) basis in the interest of more formally establishing the mechanism in future. 

**Climate Action 100+ may share public information to promote free discussion, debate and learning among investors on climate and sustainability issues. Climate Action 100+ does not seek directly or indirectly the power to act as proxy for a security holder and does not furnish or otherwise request, or act on behalf of a person who furnishes or requests, a form of revocation, abstention, consent or authorization. Climate Action 100+ does not necessarily endorse or validate the information above and shall not be responsible or liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with use of or reliance on any information contained herein, including, but not limited to, lost profits or punitive or consequential damages. Climate Action 100+ does not provide investment, financial planning, legal, or tax advice. We are neither licensed nor qualified to provide any such advice. The content of our programming, publications and presentations is provided for informational and educational purposes only, and is neither appropriate nor intended to be used for the purposes of making any decisions on investing, purchases, sales, trades, or any other investment transactions.