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Passing the Baton: Shareholder resolutions & their contribution to investor climate pledges

Report Corporate governance Investor coalitions

New report shows growth of "climate target-setting" in shareholder resolutions & their potential to cascade investors' climate pledges to companies

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Key Findings

1

We analysed over 7,500 resolutions and identified 500 as climate-related

2

From 2006-2019, over 150 shareholder resolutions involving some form of requirement to set climate target or a related business plan were introduced

3

Explicit references to the Paris Agreement are on the rise, with 11 resolutions pushing for consistency with the climate goals of the Paris Agreement

4

For the first time, in 2018, 3 companies subsequently adopted these targets. While the analysis does not prove causality, it represents a first step in understanding the potential impact of engagement.

These figures show the potential of resolutions to turn words into actions, “passing the baton” from investors who committed to aligning their portfolio with Paris goals to their investees. They illustrate the need to further organize and engage in collective shareholder actions, such as the Climate Action 100+ coalition. They also reveal the gap: among 500 climate-related resolutions, only 11 resolutions requested consistency with a 2°C pathway or better. Given the recent investor pledges, we expect Paris-aligned resolutions to rise dramatically in the next few years.

Funder information: This report has received funding from EIT Climate-KIC.

Independent, non-profit think tank working to align the financial sector with international climate goals.

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2DII today announced it is transferring stewardship of the Paris Agreement Capital Transition Assessment (PACTA) to RMI, formerly Rocky Mountain Institute. PACTA measures financial portfolios' alignment with various climate scenarios, including those consistent with the Paris Agreement. Under RMI’s stewardship, PACTA will remain a free, independent, open-source methodology and tool, and will continue to provide the financial and supervisory community with forward-looking, science-based scenario analysis to help users make climate-aligned financing decisions. RMI will invest in scaling up PACTA’s usability and applicability in day-to-day investment decisions as well as reporting requirements.

Access the full press release here: https://2degrees-investing.org/2-investing-initiative-transfers-stewardship-of-pacta-to-rmi/In the coming weeks, we will update this website with additional information. For now, please note that all contact information remains unchanged. 

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