The Say on Climate global shareholder initiative aims to move companies to develop net-zero transition plans, adopt annual 5 percent GHG emissions reduction targets (aligned with Climate Action 100+ benchmarks), provide annual emissions disclosure, and give shareholders an annual vote. The annual advisory vote would be similar to votes on executive compensation, but it would be about implementation of a company’s climate transition plan.

The initiative was launched last year by Sir Chris Hohn's Children's Investment Fund Foundation (CIFF), a $6 billion London-based philanthropic fund. Other major investor support comes from the Institutional Investor Group on Climate Change, the Australian Council of Superannuation Investors, and the UK Investor Forum. This initiative spans Asia, Europe, Australia, and North America and uses regional strategies to effectively compel companies to adopt and implement plans.

In Europe, advocates such as ShareAction and Reclaim Finance are using Say on Climate and other strategies including removing regulatory hurdles for filing shareholder proposals. Companies that agreed to Say on Climate last year face their first advisory votes in 2022, including Unilever, Royal Dutch Shell, Nestlé, Total, VINCI, LafargeHolcim, M&G, Anglo American, Aviva, Standard Chartered, and Barclays.

Down Under, advocates include the Australasian Centre for Corporate Responsibility (ACCR) and the Sunrise Project, which in 2021 won annual vote agreements from Rio Tinto, Woodside Petroleum, Santos, Oil Search, AGL, Origin Energy, South32, and BHP. Investors will have their first chance to provide feedback this year. Advocates are concerned about Santos and Woodside, for instance, because they rely heavily on offsets in the short term and carbon capture in the long term. Investors can express disapproval of these plans through Say on Climate advisory votes.

In North America, Say on Climate advisory votes will occur at Moody’s, S&P Global, and Canadian Pacific Railway in 2022. The Shareholder Association for Research and Education (SHARE) is leading the initiative in Canada, and in the United States, As You Sow has filed proposals seeking net zero and interim GHG reduction targets at Boeing, Allegheny Technologies, and UnitedHealth Group – following four majority votes in 2021 at Sysco, General Electric, Bookings Holdings, and AutoZone and several more near majorities.

Multiple efforts exist to score and assess corporate progress. In March 2022, As You Sow released The Road to Zero Emissions, assessing 55 large U.S. companies, while ACCR has released criteria for adequate climate plans that include science-based reduction targets without offsets or unproven technologies. Further, CIFF backs creating a global Net Zero Center to support standardization, coordination, and assessment of transition plans.

The global Say on Climate movement is bringing increased security and accountability to companies, so they can establish robust net zero and emissions reduction plans backed by scientific guidance. Each advocacy group has expertise in regional legal frameworks and is leveraging relationships with companies to create a global shift in corporate climate action.

David Shugar
Say on Climate Initiative Manager, As You Sow