The PRI’s “Climate transition plan votes: investor briefing” provides recommendations to investors on what to consider in casting their vote on shareholder and management-proffered say-on-climate or climate transition plan proposals aimed at driving corporate action on climate change. Most notably, the guidance suggests that the risks and potential unintended consequences of transition plan votes, which include companies adopting and investors supporting unsuitable or inadequate plans, which may then serve as a limiting factor, outweigh the potential benefits. The PRI advises investors to instead consider other stewardship activities, such as engagement, tailored proposals (if engagement is unsuccessful), and pushing for improved board oversight, to attain development and disclosure of effective climate transition plans across their portfolio.
See “Benefits of corporate transition plan votes ‘outweighed’ by risks and ‘potential unintended consequences,’ says PRI in new guidance” (Responsible Investor). See our recent reports: “PRI Calls on Investors to Step Up Efforts on Portfolio DE&I” and “Corporate Political Activity on Investor Radar” (regarding the PRI’s new guidance: “The investor case for responsible political engagement”). This post first appeared in the weekly Society Alert!