As investors grow increasingly vocal on ESG issues, some are now requesting regular advisory votes on companies’ climate change plans. At least seven North American companies face shareholder proposals for the 2021 proxy season.

Meanwhile, some companies, including Moody’s and Unilever, have already adopted a mechanism for shareholders to give their thumbs-up, or down, on climate-related goals and strategies. Indeed, sources say the urgency of climate change is growing, and investors continue to press companies to disclose alignment with the Paris Agreement, plans to transition to a net-zero economy and emissions metrics and data. But now, hedge fund TCI Fund Management and As You Sow are asking companies to not only disclose these plans, but give investors a nonbinding, regular advisory vote on them, akin to current say-on-pay voting. Boards should weigh whether this climate check-in with investors is necessary and consider the company’s stance on transparency with respect to how climate goals are progressing, sources say.

Agenda – Investors Demand ‘Say on Climate’ Vote