Investors push for mandatory vote on climate policies

Investors with combined assets of around $20 trillion in assets under management have called for the introduction of a mandatory shareholder vote on business’s climate disclosures at annual general meetings.

The Investor Forum, whose members represent around a third of the FTSE All-Share by value, has urged the government to force companies to offer investors a “say on climate” on Taskforce on Climate-related Financial Disclosure-aligned reporting obligations.

Offering shareholders a non-binding vote would enable the investment community to take a leadership position in helping ensure that UK companies commit to advancing the UK’s net zero commitments, the Investor Forum argued. It would also provide investors with a way to signal which companies are making good progress and those that are lagging, it said.

Simon Fraser, chair of the Investor Forum, said that 2020 had been a watershed year in the development of the stewardship agenda, as well as for the relevance and impact of the work of the Investor Forum.

“A number of our 2020 engagements with corporate boards involved climate and social issues demonstrating the fact that managing companies for all stakeholders is becoming an integral part of long-term value creation,” he added.