Amundi pushes for higher standards in ‘Say on Climate’ AGM resolutions
Sharanya Pillai
EUROPEAN asset manager Amundi is tightening scrutiny of climate strategy-related resolutions that companies table at their annual general meetings (AGMs) as part of its voting and engagement approach for 2022.
Many AGMs increasingly feature “Say on Climate” resolutions, which allow shareholders to vote on companies’ approaches to tackling climate change. Last year, Amundi had encouraged the practice and voted mainly in favour of these resolutions.
But this year, Amundi has voted for less than 40 per cent of the 36 Say on Climate resolutions tabled by companies, the asset manager said in a press release last Friday (Jun 24).
Within the oil industry, Amundi voted in favour of 40 per cent of Say on Climate resolutions, which include those of Repsol, BP and TotalEnergies. It voted against the resolutions of Santos, Equinor, Woodside Petroleum and Shell. The asset manager said that it is encouraging the transition of energy companies, especially oil players, and will remain invested in the sector.
“Unlike coal, for which alternatives exist, oil is an essential energy source. Amundi is therefore convinced that the collective target of carbon neutrality will require not excluding energy companies, but rather supporting their transformation,” it said.
To analyse the resolutions, Amundi asked companies that have submitted a climate strategy at their AGMs to present comprehensive targets, including the scope of figures and baseline scenarios. It also asked for an agenda with short, medium and long-term objectives, and clear resources to achieve the climate goals. This would include a 3 to 5-year investment plan.
Amundi then assessed the strategies for soundness and alignment with the Paris Agreement, the landmark international treaty on climate change. This led to a case-by-case exercise of Amundi’s vote on companies’ climate strategies, it said in the press release.
The asset manager added that the reasons for a negative vote and its expectations for improvements were communicated to the companies concerned.
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