Investors struggle to make US companies change tack on climate change

Barely a dozen proposals on environmental issues put forward by shareholders reached a vote across 1,500 of the largest US companies, raising questions about institutional investors’ determination to push for meaningful corporate action on climate change.

The number of shareholder-backed environmental proposals at companies in the S&P 1500 index dropped to just 13 in the year ended June 30, down more than half from the 29 in the previous 12 months, according to Georgeson, the shareholder engagement and governance consultancy. The sharp decline could be a result of more negotiations on how to meet environmental challenges between companies and shareholders.

More than 100 companies have started to report financially material environmental and social issues, including climate change, based on guidelines developed by the Sustainability Accounting Standards Board. Moves by US regulators had also affected efforts by shareholders to table proposals, said Don Cassidy, global head of corporate governance at Georgeson. Read Full Article - Financial Times, October 6, 2019