Investors filed around 540 proposals as of mid-February asking companies to address environmental, social and corporate governance issues.
According to Proxy Preview resolutions focused on climate change accounted for about a quarter of this year’s total, with the number increasing by about 12% from the same point in 2022.
Investors are calling on executives and corporate boards to set targets for cutting greenhouse gas emissions, and then to report on their progress.
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Kirsten Snow Spalding, who leads investor initiatives at Ceres, a non-profit organisation focused on sustainability said the message to companies is, “set targets, issue plans, give us clear disclosure and all of it is about, how are you addressing the risks and moving towards the opportunities?”
Are shareholder proposals working?
Most resolutions are non-binding, but just introducing them has proven to be an effective tool for activist investors. Last year, shareholders withdrew a record 110 proposals that were focused on climate change after they struck deals with companies, according to Ceres. Another 15 climate resolutions that went to a vote at various corporations won majority support from shareholders.
“The trend toward climate action is really on the rise,” Spalding says.
Scientists working for the United Nations say the planet is on track for catastrophic warming that will cause more extreme weather.
