In 2023, shareholders of public companies submitted a number of proposals with requirements for companies to solve environmental management issues, in particular, regarding the reduction of greenhouse gas emissions.
The number of climate resolutions reached about 130 proposals and increased by 12% compared to 2022, reports NPR.
The article explained that every spring shareholders evaluate how companies are managed. This is a chance for investors to vote on corporate policy proposals. Amid the climate crisis, annual shareholder meetings have become a battleground for activist investors demanding more aggressive action from companies on climate change.
Investors want to know how companies are contributing to rising temperatures and what they are doing about it, it said. They call on company executives and boards to set targets for reducing greenhouse gas emissions and report on progress. They also require an understanding of the development of companies against the background of reducing emissions from industry.
The article emphasized that most resolutions are not binding. However, only their implementation proved to be an effective tool for activist investors.
The authors added that while the trend toward climate action is growing, the pace of corporate change is slower than activists would like. Rapid reductions in emissions will avoid some of the worst effects of climate change. However, emissions continue to rise. Activists attribute this trend to the fact that companies' efforts are insufficient, despite pressure from investors.
It said that despite an increase in the number of climate resolutions, their average support fell to around 32% from 42% in 2021 amid the global energy crisis and rising inflation.
Earlier, EcoPolitic werote, that the climate ministers of the "Great Seven" countries (G7) may advocate new investments in gas supply, despite the globally agreed goals regarding climate change.
As EcoPolitic previously reported, according to the International Energy Agency, global carbon emissions in 2022 increased to more than 36.8 billion metric tons and reached a new record value. This is bringing the world to dangerous levels of global warming.
