LAPFF calls for shareholder vote on greenhouse emissions

Companies should allow for a shareholder vote on their greenhouse gas emission reduction strategy, the Local Authority Pension Fund Forum (LAPFF) has called for in a letter to all FTSE listed companies (excluding investment trusts).

The letter, which was written alongside Sarasin & Partners LLP, CCLA, and Ethos Foundation, aimed to encourage companies to have a “say on climate” votes to enhance transparency and accountability on “one of the most pressing financially material risks facing investee companies”.

Whilst the letter welcomed the boards who have already enabled a “say on climate” vote, it urged all companies to follow suit by disclosing their transition plans aligned to a 1.5°C temperature outcome and to allow investor oversight on the robustness of plans through a vote on the strategy and any associated capital expenditure requirements.

This intervention comes against a backdrop of increasing pressure from government and regulators to draw up plans and take action to reduce emissions, as the letter’s signatories noted the Treasury’s launch of the UK Transition Plan Taskforce to develop the “gold standard” for private sector climate transition plans in the UK.

The taskforce stated that a transition plan should be integral to the company’s overall strategy, setting out how it aims to prepare and contribute to a rapid shift towards a decarbonised economy.

LAPFF chair, Cllr Doug McMurdo, commented: “The lack of disclosure and the timidity of climate plans at many companies are very serious concerns for investors.

“Such concerns should be addressed by all companies publishing credible climate action plans and allowing investors to have a say on whether the strategies are fit for purpose.”

Sarasin & Partners LLP partner, Natasha Landell-Mills, added: “Climate change is eroding humanity’s ability to prosper. Companies cannot continue to generate wealth on the back of eroding natural capital.

“Promises to align with net zero are necessary but not sufficient to move us onto a more sustainable path.

“Where will investment go to build a net-zero future? What harmful activities will be wound down? Investors – and the public – need to know how these promises are going to be delivered.”

    Share Story:

Recent Stories


A time for fixed income
Francesca Fabrizi discusses fixed income trends and opportunities with Goldman Sachs Asset Management Head of UK Pensions Solutions, Fixed Income Portfolio Management, Henry Hughes, in our Pensions Age video interview

Purposeful run-on
Laura Blows discusses purposeful run-on for DB schemes with Isio director, actuarial and consulting, Matt Brown, in Pensions Age’s latest video interview
Find out more about Purposeful Run On

Keeping on track
In the latest Pensions Age podcast, Sophie Smith talks to Pensions Dashboards Programme (PDP) principal, Chris Curry, about the latest pensions dashboards developments, and the work still needed to stay on track
Building investments in a DC world
In the latest Pensions Age podcast, Sophie Smith talks to USS Investment Management’s head of investment product management, Naomi Clark, about the USS’ DC investments and its journey into private markets

Advertisement