Say on Climate: Investor Distraction or Climate Action?

Investor engagement on climate change increased markedly in 2021. One key development was the emergence of say-on-climate votes: management-backed resolutions that ask shareholders to approve a company’s climate plan or climate-action report proactively, either on a one-time or recurring basis.

In most cases, say-on-climate votes are nonbinding and advisory; even if a vote fails, the company isn’t required to change its plan. Shareholders, however, may expect directors to carefully consider the result in developing their approach to climate change — particularly when the proposal receives strong shareholder opposition. Say-on-climate votes are often the result of shareholder pressure and may be preceded by a separate, shareholder-backed proposal calling on a company to adopt a climate strategy and submit it to a vote.

You can now read the full whitepaper at the link below