ROBECO - Tue, 04/30/2024 - 12:56

Voting to support the climate transition

Climate change has taken center stage during the annual general meeting (AGM) season for many years, offering investors the chance to vote on how well companies are transitioning toward net zero. But it’s not a simple matter of voting yes or no.

The way in which companies are readying themselves to cut emissions can be complex, and will vary depending on the reliance of their business on fossil fuels. It is a different beast for an oil and gas company than it is for one in the financial services industry. But it’s still an important subject for shareholder scrutiny.

Robeco has long believed that over the long run, companies that have strong climate transition plans are likely to be more viable companies for the future, and will help to achieve the decarbonization requirements of many of our clients. At the same time, the energy crisis and geopolitical uncertainty have created more questions and debate about the right course of action in the short run.

Approaching AGMs in 2024

In this article, Robeco’s voting specialists explain how they will approach the current AGM season, outlining voting plans for climate-related resolutions at AGMs. We will support some resolutions at companies making good progress, but oppose them at companies considered to be lagging.

The power to vote also extends to deciding whether to approve the reappointment of members of the board, including the chair and CEO. And there are issues over Say on Climate resolutions which are non-binding but nevertheless keenly watched.

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