The Exxon vote
Last week I had an article published in Utility Week, a trade publication for the British utilities industry. It was about the conference we co-sponsored with PwC in May. Essentially saying that utilities and investors are further along the curve than regulators in transitioning to low carbon models.
This week I’ve been summarising the 340 comments from 67 people we collected during last week’s online dialogue. The excerpt below was one asset owner’s analysis of why the resolution at Exxon demanding a 2-degrees-Celsisus scenario plan passed:
"Exxon vote from 38% to 62% was indicative of a large uptick in investor willingness to assert disclosure requirements. Most significant development: world’s largest passive managers supported the Exxon resolution. This is hugely important: these assets are now in play for more forceful climate stewardship.
"Asset managers vote case by case. Success at Exxon because:
• Exxon's response to last year's 38% vote was woeful
• Asset owner pressure on asset managers, exercised forcefully in private
• Civil society pressure, exercised forcefully in public, #Missing60 charge hit home
• S/h resolutions filed at asset managers on climate voting (BlackRock and Vanguard)
• Co-filing by so many large European AMs underlined the institutional nature of the resolution, provided impetus for support from US AMs.
• TCFD recommendations made it an institutional-quality ask, with added support from TCFD AMs.
• PRI stressed the importance of Principle 2, giving asset managers reason to reflect on whether they could retain credible status as Responsible Investors."
The exciting bit for Preventable Surprises was having the Missing60 campaign called out. I wrote several articles and many tweets putting pressure on BlackRock and Vanguard for voting with the 100% majority on 2-degree resolutions at Shell and BP but then voting against similar resolutions at Exxon and Chevron, where the measures failed 40-60. Sixty percent of voters reversed their position to align with management at Exxon and Chevron. I don’t think BlackRock and Vanguard enjoyed being called out for that reversal.
6-27 to 6-29