Investors Fear that the Say On Climate Will Turn Against Them

Investors fear that companies will adopt less ambitious strategies, and that if they are validated, they can no longer criticize them. 23 May 2021 Investors Fear that the Say On Climate Will Turn Against Them

Laurence Boisseau of Les Echos pens an article on the global emergence of Say on Climate (SoC) proposals. As Laurence points out, the SoC proposals proposed by companies are, in general, a “hit”. At the Vinci’s general meeting, management won more than 98% of votes in favor. That of Atos, was approved at 97%. Elsewhere in Europe, the scores are also high. At Unilever, 99% of shareholders voted for, 96% at Ferrovial, 95% at Shell, and 94% at Glencore.

Louis Barbier comments that “the relevance of certain Say On Climate (shareholders’ votes on climate resolutions) is starting to be questioned by some investors”. By presenting its own climate resolution, Total pulled the rug out from under shareholders eager to table a more ambitious resolution.

“Investors wanted to get a discussion on the climate, and put pressure on companies to force them to reduce their greenhouse gas emissions. There, they wonder if with this vote, the companies did not trap them. Because they ultimately put an end to any debate. Shareholders can no longer criticize the strategy once they have validated it”, commented a lawyer specializing in corporate governance to Laurence.

You can access the full article here (subscription required, in French).


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