Shareholder Votes on Climate Action Plans ‘More Complex’ Than Expected

Gavin Hinks of Board Agenda pens an article on Say on Climate (SoC) votes. As Gavin Hinks writes, energy giant Shell caused a sensation back in May with its SoC proposal allowing shareholders to vote on the company’s climate action plan. But are companies moving wholesale to introduce this new kind of voting? Research suggests there has been progress, but there has hardly been a stampeded to embrace this new form of accountability.

SquareWell’s report says since the campaign was launched in 2019, only 32 companies have submitted, or will submit, their climate action plans to a SoC vote for shareholder approval. Of the the 32, 23 have formally adopted SoC. SquareWell says the otherwise “simple” concept of shareholders voting on climate action plans has turned out to be “more complex” than first expected. The effectiveness and impact of SoC have been questioned while some companies, they note, have used the votes as a “defence mechanism” to appear “progressive” and to ward off other shareholder action. SoC, SquareWell says, has become “one of the most contentious topics of this year’s general meeting session.”
So far average approval for a plan is 90% (Shell scored 89% in London where an opposition vote of 20% or more is considered a shareholder “revolt”). Shell is joined by Glencore, Atos, S&P and Total as the only companies to see votes against their plans of 10% or more.

The full article can be accessed here.