Glass Lewis have published a paper which sets out their views on the Say on Climate votes.
The paper recognises that where such votes are being offered to shareholders, they are becoming an important part of the 2021 shareholder meeting. Glass Lewis have seen that such proposals are being put forward by both shareholders and boards.
While there are many positive aspects of such resolutions, there are also challenges for investors and companies alike, particularly where said resolution relates to the strategy or plans of a company.
Glass Lewis strongly supports those proposals that involve additional disclosures and those that shareholders a vote on the company’s climate plan or strategy. It will recommend against management and shareholder proposals which request that policy includes an annual vote on a climate related plan or strategy.
Given the broad spectrum of other related proposals and the lack of standard guidance on who shareholders should evaluate them, each resolution will be reviewed on a case-by-case basis. It is idented that for the 2022 AGM season Glass Lewis will codify their approach following engagement with investors, companies, and stakeholders.