An association of public-sector pension funds with combined assets of more than £350bn is pressing major corporates to give shareholders a vote on their plans for reducing carbon emissions.
The Local Authority Pension Fund Forum (LAPFF) is demanding a “Say on Climate” vote in a bid to enhance transparency and accountability ahead of the 2023 annual general meeting season. It has written to the chairs of all FTSE listed companies, calling for the move.
While congratulating those corporate boards that have agreed, the LAPFF urges all companies to disclose their transition plans for aligning with the 1.5°C target set by the Paris Agreement. This would allow for more investor oversight on the robustness of plans through a vote on strategy and any associated capital expenditure requirements, it added.
“The lack of disclosure and the timidity of climate plans at many companies are very serious concerns for investors,” said LAPFF chair Doug McMurdo. “Such concerns should be addressed by all companies publishing credible climate action plans and allowing investors to have a say on whether the strategies are fit for purpose.”
LAPFF comprises 86 public-sector pension funds and six pool companies based in the UK with combined assets of more than £350bn. It signed the letter alongside law firm Sarasin & Partners, asset manager CCLA and the Ethos Foundation.