More than 50 large investors (including JPMorgan Asset Management and M&G) that collectively manage over $14 trillion in assets are demanding companies publish details of their efforts to reach their climate commitments and allow shareholders a vote on their plans.
So what?
Investors are seeking greater transparency and accountability from their companies in following through on their climate commitments. This means that companies who have set ‘net zero’ or similar commitments for the distant future (such as 2050) will need to demonstrate efforts they are taking at the present. Further, depending on local law, their efforts will be presented for an annual vote to shareholders,
Will shareholder activism be the nudge that moves companies to act on their climate commitments? Or will there be pushback, disagreements, and potential loopholes in implementation that hinder the process?
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