Ovintiv has been making progress toward effective climate related disclosure, but it did not yet meet the specific request outlined in the shareholder proposal. We voted for the proposal to underscore that we expect meaningful progress on disclosure over time and expect the company to pursue targets aligned to the Paris Agreement goal of limiting the rise in global temperature.
In our engagements with company management, we were encouraged to hear about Ovintiv’s progress in recent years on reducing GHG emissions and increasing disclosure in line with recommendations by the Task Force on Climate-related Financial Disclosures (TCFD). Among other sustainability initiatives, Ovintiv conducts an annual assessment to identify and disclose ESG risks, with regular reviews by the board.
During our conversation, we shared how other companies set targets that promote risk management and demonstrate resilience. Although Ovintiv publicly discloses sustainability data, its current disclosure fails to set Paris Agreement-aligned targets. Effective disclosure of targets enables investors to understand how the board oversees and incorporates climate scenarios into long-term company strategy. Although the company generally agreed with the spirit of the shareholder proposal, it believes its current approach is the best path forward. Because we agreed with the proposal’s spirit, we voted for it.