Funds Still Support Directors at Companies with Poor Climate Change Performance

A new report from Majority Action finds that even investment firms with a commitment to environmental goals do not evaluate director candidates based on meeting those goals. Key findings:

  1. The majority of key Climate Action 100+ investor-signatories supported 90% or more of the directors at U.S.-based focus companies.

2. While some key investors voted against more directors in 2022 than in 2021, the largest investors by AUM actually increased support for directors at US- based focus companies.

3.  Ahead of the 2022 proxy season, 17 U.S.-based focus companies failed to disclose a net zero ambition. However, 25 key investors supported the entire board at a majority of these companies, and 10 key investors supported every single director at every single company.

4.  At every company where lead engagers flagged votes opposing directors, more than 15% of the key investors opposed at least one flagged director, suggesting that vote flagging serves an essential function.

5. The majority of key Climate Action 100+ investor-signatories supported 90% or more of the directors at U.S.-based focus companies.

6. Most companies that failed to meet investor expectations for a net zero ambition did not have any votes flaggedagainst directors or for shareholder proposals.

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