Shareholders Say on Climate

Shareholders’ Say on Climate

Harlan Tufford and Florian Sommer

November 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. All of these “say on climate” votes received over 80% support. The number of such votes seems likely to increase in 2022, with companies such as Barclays and Rio Tinto slated to hold their first votes and other companies holding their second.

In this chart, the upper section shows all say-on-climate votes held in 2021 to date and all say-on-climate votes scheduled for 2022. 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 ahead of the 2022 proxy season by charting companies facing say-on-climate proposals 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

 

 

 

Data as of Oct. 25, 2021. The chart includes management proposals on climate strategies or climate-action reports and does not include climate-related shareholder proposals. Our calculation of voting results accounts for abstentions. Implied Temperature Rise is designed to show the temperature alignment of companies, portfolios and funds with global climate targets. It compares current and projected greenhouse-gas emissions across all emission scopes with their share of the remaining global carbon budget for keeping warming this century well below 2°C. A company projected to emit carbon below budget can be said to “undershoot” the budget and a company projected to exceed the budget “overshoots” it. Implied Temperature Rise converts the undershoot or overshoot to an implied rise in average global temperatures this century, expressed in degrees Celsius (°C). Source: MSCI ESG Research LLC and company disclosures

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


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