Institution Theme Category Industry
  • Wellington Management
  • Environmental
  • Climate
  • Financial Services
Company Year Market Link
Firstrand Limited 2019 N/A https://www.wellington.com/uploads/2020/10/4dc06a6392f39bcacb4ae0bcaa9a5aeb/664_11_a4_wmc.pdf

After consulting with the GIA, the ESG analyst spoke with investor relations representatives of the company about two climate-focused shareholder proposals on the ballot at their upcoming annual general meeting. The first proposal, to establish a comprehensive fossil-fuel lending policy, was supported by management as a complement to its existing policies. The second proposal, to publish a report on the company’s exposure to climate-related risks, received solid support. We sought to express our support for enhanced disclosure on climate change risks and opportunities, in line with the TCFD and our P-ROCC framework [Physical Risks of Climate Change, another important output of our climate work].
We encouraged the company to be transparent about its work in progress and suggested sector-specific case studies showing how analytics and risk management can integrate climate. Management established an internal working group and joined industry groups to improve scenario analysis. Given that physical climate risks like drought and water scarcity afflict some of the company’s key markets, we reiterated the importance of assessing these risks. We shared our P-ROCC framework, which the internal working group is considering.
…We are impressed with the company’s commitment to improving transparency. Supporting a shareholder proposal is a signal of its progress. We like that functional representatives have included climate as a regular part of risk management and strategic planning. We will monitor progress and provide feedback on the company’s evolving disclosure.

Details

  • Proponent
  • Shareholder
  • Resolution
  • to establish a comprehensive fossil-fuel lending policy and publish a report on the company’s exposure to climate-related risks
  • Vote
  • For
  • Rationale
  • N/A
  • Details
  • We supported both proposals, in line with our voting guidelines. The first proposal passed with unanimous support, and the second proposal received approximately 33% support from shareholders.