CalPERS’ co-filed climate reporting proposal at Anglo American gets 96.25% shareholder support

‘Aiming for A’ motion co-filed with CCLA had been supported by management

The California Public Employees’ Retirement System’s climate risk reporting resolution at mining giant Anglo American got 96.25% shareholder support, according to voting tallies released by the company today after its AGM yesterday.

It’s the latest success for the ‘Aiming for A’ initiative. The resolution, which was supported by company management, requires the firm to report on environmental risks and opportunities associated with climate change. CalPERS co-filed the resolution along with a coalition of asset owners assembled by CCLA Investment Management.

“This is the new normal: climate risk reporting,” said Anne Simpson, Investment Director of Global Governance at the $297bn giant, the largest US pension fund.

“The vote at Anglo American shows that investors and management are in partnership following the Paris Agreement to address climate risk and opportunity. Companies opposing climate risk reporting should take note.”

The resolution included five specific areas: ongoing operational emissions management; asset portfolio resilience to the International Energy Agency’s scenarios; low-carbon energy research and development and investment strategies; relevant strategic key performance indicators and executive incentives; and public policy positions relating to climate change.Environmental law firm ClientEarth helped shareholders file the resolution and its Company Lawyer Alice Garton said: “Shareholders have helped Anglo American take the first step towards more transparency on climate change. The tide is turning for carbon intensive companies.” She added, “we will be monitoring their reporting to make sure they continue down this path.”

“The vote shows that investors and management are in partnership following the Paris Agreement”

Forty-two percent of the shareholder vote rejected Anglo American’s remuneration report with the firm saying it was “mindful” of shareholder concerns. It said it has had a dialogue with major shareholders which has helped to “clarify the issues”. A revised pay policy will be put to the vote at the 2017 AGM.

CalPERS has been active in trying to get fellow shareholders in a range of companies to support ESG resolutions at a range of companies recently.

Just yesterday (April 21) it wrote to shareholders, alongside the New York City Pension Funds, seeking support for ‘proxy access’ at Universal Health Services and SBA Communications. Already this month it has written 16 such letters (identifiable by the SEC designation PX14A6G).