|What is the extent of the company's lobbying efforts and participation in trade groups? How does the company ensure that it is not affiliated with organizations that advocate for policies that are incompatible with the Paris accord or other strategic policy positions? How appropriate is the related level of disclosure?|
|Not disclosed - Energy Company||2020||Australia||2019 Invesco Climate Change Report||https://www.invesco.com/corporate/dam/jcr:c245615a-f0ae-4c32-a467-d4a0676ec797/TCFD%20Report_FINALJuly%202020.pdf|
Among the highest conviction investments for one portfolio is an Australian energy company. This Australian energy company faced two climate-related shareholder resolutions in their 2020 annual general meeting (AGM)…The second resolution called for the company to create and disclose a report into its lobbying activities, both direct and indirect.
Members of Invescoâ€™s ESG and investment teams met with the companyâ€™s chairman and head of investor relations prior to the AGM. The company objected to the resolutions, explaining that…the board already reviews any incompatibility between the companyâ€™s public advocacy positions and those of industry associations the company belongs to. We did not find the arguments persuasive.
(see Voting Details)
In response to demand for greater lobbying disclosure, the company intends to start publicly disclosing any misalignment between its own policy views and those of the industry associations it holds membership of.
Although falling short of the resolution, this is a positive step in response to investor demands.
- Shareholder Proposal
- Report on lobbying activities
- Shareholders would benefit from the additional disclosure...particularly in view of the fact that some industry associations the company belongs to may lobby for policies incompatible with the Paris Agreement, and the proposal was not unreasonably prescriptive
Due to the high exposure oil and gas companies have to the physical and transition risks of climate change, it was felt that shareholders would strongly benefit from the additional disclosure and target setting, particularly in view of the fact that some industry associations the company belongs to may lobby for policies incompatible with the Paris Agreement. In addition, neither proposal was unreasonably prescriptive on management. Accordingly, all Invesco shareholders voted in support.
The resolution on lobbying disclosure fell short of a majority, nevertheless attracting 42% shareholder support.