After years of investor leadership and engagement on corporate climate disclosure, we’re reaching the tipping point. For the first time ever, a climate risk shareholder resolution received a majority vote at a U.S. energy company — in fact, a resounding 67% favorable vote at Occidental Petroleum. A few days later, it happened again with a majority vote at PPL Corporation, CERES reported. These resolutions called on fossil fuel companies to evaluate and disclose how their business strategies would fare in a low-carbon economic future.
“These successes matter not only for improving corporate climate disclosure, but for the signal they send to the entire fossil fuel industry. They are evidence of the growing consensus among investors and other capital market influencers that the impact of climate change on companies must be analyzed, disclosed, and acted upon.”
At ExxonMobil’s annual meeting last month a majority vote of 62% voted in favor of the fossil fuel giant analyzing and disclosing the risks it faces due to climate change.
“At the start, people thought we were naive or misguided for thinking we could persuade mainstream investors to act on climate. Today, many of the very largest investors in the world are challenging companies on climate change and sending a clear message that business as usual is no longer an option,” Ceres said.
Despite US President Trump’s decision to pull out of global climate change accord, “it is clear that investors are acting upon the imperative to address climate risks, that the business case for climate action is real, and that the transition to a low-carbon economy is inevitable.”