Companies must demonstrate that their plans to achieve net zero emissions are credible, yet sufficiently challenging, and avoid making “vague” statements about using offsets and carbon credits if they are to avoid further shareholder backlash.
Andrew Thain, managing director of Georgeson Australia, said he expected pressure on companies to offer shareholders a say on their climate plans would continue to grow.“Given the importance of climate to both global and Australian shareholders, it’s likely that we will see more companies, especially those holding oil and gas assets, move to voluntarily disclose their climate plans through say on climate resolutions before receiving shareholder proposals,” Mr Thain said.
Unlike remuneration reports, there are no regulations governing when companies put forward say on climate resolutions. AGL, Santos and South32 are among the companies that have committed to putting a say on climate resolution to shareholders every three years.