* Scores of investors call for firms to set a net zero plan
* Want to know which directors are responsible for it
* Also seek an advisory vote on the plan
By Simon Jessop
LONDON, July 30 (Reuters) - Investors managing $14 trillion
in assets on Friday said they wanted all companies to set a
climate transition plan and allow them to vote on it, ahead of
next year's season for annual general meetings.
The 53 investors, including UBS Asset Management, DWS and
Legal & General Investment Management, said they were setting
new expectations for companies as more firms publish plans to
transition to a low-carbon economy.
Currently, around a fifth of the world's 2,000 largest
companies have done so, the investors said.
Ahead of next round of climate talks in Scotland in
November, countries the world over are committing to reach
net-zero greenhouse gas emissions by the middle of this century
in an attempt to stop catastrophic climate change.
The investor group's statement, through the Institutional
Investors Group on Climate Change, calls for all companies to
produce a net-zero transition plan in line with the Taskforce on
Climate Related Financial Disclosures reporting framework.
In addition, companies need to identify which board
directors, in addition to the chair, would lead the efforts and
be the focal point for engagement by investors, and who would be
voted against if the plan was considered inadequate.
The investors also said, where applicable with local law,
they wanted companies to provide an advisory vote on the plan's
implementation, Failing that, investors could look to express
their opinion by voting on other resolutions, such as the
re-election of board members.
"Transparency and accountability are critical to the
effective delivery of net-zero commitments. Putting corporate
net-zero alignment plans to the vote will allow shareholders to
send a clear message to the Board on the scale and pace of
implementation,” said Stephanie Maier, Global Head of
Sustainable and Impact Investment, GAM Investments.
The push for a vote follows the launch of a 'Say on Climate'
campaign by hedge fund billionaire Chris Hohn last year and
similar votes in this year's AGM season at companies including
Shell and Unilever.
Victoria Barron, Head of Sustainable Investment, BT Pension
Scheme Management added: "This statement emphasises that
investors want to see net-zero strategies, they want to have the
right to vote on them and they want clear accountability,
metrics and targets.”
(Reporting by Simon Jessop, editing by Louise Heavens)
