Key Impact Points
- High Implementation Rate: 73% of corporate commitments from shareholder resolutions were fully or mostly implemented.
- Majority Votes: 94% of 18 majority votes were implemented to some degree, with 61% fully or mostly implemented.
- Investor Satisfaction: 84% of implemented commitments and 77% of majority votes were assessed as High or Medium quality by investors.
Ceres, a nonprofit advocacy organization, has released a new report titled From Commitment to Implementation: An Analysis of Corporate Climate Actions from the 2021 Proxy Season. Authored by Rob Berridge and Gabriel Gerson, the report examines the extent to which companies have followed through on climate-related commitments made in response to shareholder proposals. The full report can be accessed here.
Strong Corporate Climate Action
The report analyzes 66 corporate climate commitments following resolutions filed in 2021, revealing a strong corporate response to shareholder engagement. This three-year analysis period provides a reasonable timeframe for companies to implement their commitments, including setting science-based greenhouse gas reduction targets and adopting global no-deforestation policies.
Key Findings
- Implementation Success: The report highlights that 73% of corporate commitments made in response to withdrawn shareholder resolutions were fully or mostly implemented, showcasing substantial follow-through on climate promises.
- Majority Votes Implementation: Out of 18 proposals that received majority votes, 94% were implemented in some capacity, with 61% being fully or mostly implemented.
- Quality of Implementation: Investors assessed 84% of implemented corporate commitments and 77% of majority votes as High or Medium quality, indicating a strong level of satisfaction with the actions taken by companies.
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Examples of Corporate Action
The report spotlights several companies, including Phillips 66 and Kraft Heinz, which have taken significant steps to meet their climate commitments. These examples underscore the positive impact of shareholder engagement on corporate climate action, benefiting investors, companies, and society.
Investor Insights
Ceres’ analysis is primarily derived from assessments conducted by the shareholders who filed the proposals, providing first-hand insights from a diverse range of investors, including pension funds, asset managers, and faith-based institutional investors.
Download the Full Report
To explore the comprehensive analysis and findings, download the full report here.
In conclusion, the From Commitment to Implementation report by Ceres demonstrates the significant progress companies have made in responding to climate-related shareholder proposals, reflecting the powerful influence of shareholder engagement in driving corporate climate action.
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