Investor group Climate Action 100+ and shareholder advocacy organization Majority Action this month published lists of individual board directors whom the groups are recommending investors vote against during this year’s proxy season.
The campaigns kick into high gear this month. Socially responsible investors, as well as major pension funds, have publicly called out board members at companies in high-emitting industries for falling behind on climate goals and not disclosing enough specifics on climate risk, strategy and political lobbying related to climate change, among other concerns.
“Increasingly, investors are not just wanting to signal to the company itself that they are dissatisfied but to other investors and the market, particularly around the basic set of standards of the [Taskforce on Climate-related Financial Disclosures] reporting and net-zero commitments,” said Jessie Giles, research director at Majority Action.
“They are willing to not just make those votes — but make them public.”These escalation campaigns come after investors have grown tired of waiting for progress, sources told Agenda. After supporting shareholder resolutions and seeing action stall, investors are increasingly using their votes in director elections to hold boards accountable.“
At those companies that are particularly recalcitrant, investors are losing patience with boards,” Giles said. “They are not just dissatisfied with the companies’ climate commitments specifically but also with the lack of engagement from the company on critical issues.”Agenda – Investors Name and Shame Directors over Climate Concerns