Institution Theme Category Industry
  • Invesco
  • Environmental
  • Climate
  • Oil & Gas
Company Year Market Link
Not disclosed 2019 N/A https://www.invesco.com/corporate/dam/jcr:5e1d4647-3c11-4142-8094-a7ef4a6fca8d/Investment-Stewardship-Annual-Report-2019.pdf

Our key objective was to better understand the steps the company was taking to transition away from carbon intense fossil fuels in order to stay within a 2-degree scenario. This is possibly the most material long-term ESG risk factor facing energy companies, and the outcome of our engagements would influence how we voted in the company’s 2019 Annual General Meeting. We met with the head of investor relations and discussed their plans to address climate change. Although the company has made positive steps, it was felt that their decarbonization plan was significantly behind other Organization for Economic Co-operation and Development (OECD) countries and that they do not disclose enough information about how their current fossil fuel investments fit into this plan. For this reason, we supported a resolution calling for the company’s management to outline 1) how the company’s capital expenditure on fossil fuels is aligned with the Paris Agreement 2) the short, medium and long-term targets for reductions in scope 1, 2 and 3 emissions and 3) details for how renumeration policy will incentivize progress towards these targets.
Although the resolution failed to pass, it was the most supported shareholder resolution with 7.90% of proxy votes cast in favor. This indicates a tangible level of opposition from shareholders about the speed at which the company is decarbonizing and a desire for greater disclosure around their new fossil fuel investments. We will continue to monitor the situation and reiterate to management our desire for these concerns to be addressed.

Details

  • Proponent
  • Shareholder
  • Resolution
  • Resolution calling for the company’s management to outline 1) how the company’s capital expenditure on fossil fuels is aligned with the Paris Agreement 2) the short, medium and long-term targets for reductions in scope 1, 2 and 3 emissions and 3) details for how renumeration policy will incentivize progress towards these targets
  • Vote
  • For
  • Rationale
  • N/A
  • Details
  • [the] decarbonization plan was significantly behind other Organization for Economic Co-operation and Development (OECD) countries and that they do not disclose enough information about how their current fossil fuel investments fit into this plan…Although the resolution failed to pass, it was the most supported shareholder resolution with 7.90% of proxy votes cast in favor.