Shareholder climate engagement at all-time high

The number of resolutions and the increasing levels of support reflect shareholders' growing concerns about the climate-resilience of their portfolios

Jon Hale 26 September, 2019 | 12:59AM Jackie Cook

People casting a ballot

This article is part of Morningstar Canada's ESG Special Report week

Shareholder support for climate-related resolutions climbed to an all-time high of 30% in 2019’s proxy season, with the number of resolutions coming to a vote declining significantly. Those are not contradictory developments. Many proposed resolutions were withdrawn prior to votes because shareholder sponsors and company management teams sat down and had a constructive dialogue, leading to the requested action being taken. In a less-positive development, though, some resolutions were removed from the proxy ballots in 2019 because the U.S. SEC issued “no-action” letters.

Since 2004, shareholders have voted on well over 400 resolutions asking companies to report on the business risks of climate change and disclose strategies for addressing these risks. The number of resolutions and the increasing levels of support reflect shareholders’ growing concerns about the climate resilience of their portfolios.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
BP PLC ADR22.46 USD1.86
Emerson Electric Co59.77 USD0.50
EOG Resources Inc45.40 USD2.39
Exxon Mobil Corp42.65 USD3.12
Royal Dutch Shell PLC ADR1,717.00 ARS0.00

About Author

Jon Hale

Jon Hale  Jon Hale, Ph.D., CFA, is the head of sustainability research for Morningstar.

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