Shareholder Engagement

Shareholder engagement actions consist in dialoguing with invested companies about their environmental performance.

With the ongoing debate on climate change and finance, large investors are focusing on executing their shareholder rights. They are building voting alliances with other investors in order to push high polluting companies towards more climate-friendly business models. This type of activism proved spectacularly effective in the spring of 2015: virtually all of BP and Shell's shareholders demanded that the two companies come up with a strategy that would be both resilient to climate change and drastically reduce their greenhouse gas emissions.

One of the most recognized initiatives is Aiming for « A ». Several UK asset managers and asset owners, including the CCLA AM, the most influential members of the Church Investors Group and the Local Authority Pension Fund Forum (LAPFF), teamed up to launch a collaborative engagement initiative in 2012 focusing on the 10 major UK-listed extractives and utilities companies. The goal of the Aiming for A Coalition is to bring about improvement in these companies' CO2 reporting so that they obtain the highest CDP performance band ("A") and become eligible for the Climate Performance Leadership Index, made up exclusively of companies demonstrating best practices.

By October 2015, roughly 400 investors with €11tn assets under management have taken action into shareholder engagements.

Read the full Novethic study to learn more