Shareholders Say on Climate

Harlan Tufford and Florian Sommer

May 16, 2021

 

Many high-profile companies submitted their climate strategy or climate-action report to an advisory, management-sponsored shareholder vote for the first time in 2021 or 2022. All of these say-on-climate votes were approved, typically by large majorities. The number of such votes seems likely to increase, with companies such as Barclays and Equinor slated to hold their first votes during the 2022 proxy season and other companies holding their second.

In this chart, the upper section shows all say-on-climate votes held in 2021 and 2022 to date and all scheduled, future say-on-climate votes in MSCI ESG Ratings coverage . The x-axis positions companies by their market capitalization (in USD), and the y-axis positions companies by their Implied Temperature Rise (see our methodology for details). The lower section shows how much support each previously held say-on-climate vote received. This analysis may help investors focus their engagement efforts during the 2022 proxy season by charting companies facing say-on-climate votes against their emissions trajectories.

How to interact with this plot: Hover over or click on the dots/squares to learn more about the company and its approach to say-on-climate votes, and click anywhere on the graph to deselect. Click on a past proposal from an annual general meeting (AGM) to highlight it in both sections of the chart (proposals at future AGMs do not appear in the lower section of the chart). Filter the proposals by AGM status or by companies’ home market or Global Industry Classification Standard (GICS®) sector using the drop-down menus at the bottom.1

 

 

 

Universe comprises companies in MSCI ESG Ratings coverage that have held or scheduled management-sponsored say-on-climate votes. Implied temperature rise is designed to show the temperature alignment of companies, portfolios and funds with global climate targets. It compares a company’s current and projected greenhouse-gas emissions across all emission scopes with its share of the remaining global carbon budget for keeping global warming well below 2 degrees Celsius (°C). It converts a company’s “undershoot” or “overshoot” of its carbon budget to an implied rise in average global temperatures this century, expressed in °C. Data as of April 2022. Source: MSCI ESG Research

1GICS is the global industry classification standard jointly developed by MSCI and S&P Global Market Intelligence.


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