2023-04-27 17:07:49
“Climate change has become a major topic for investors, as it could impact their financial assets,” notes Vanessa Serret, teacher-researcher in finance at the University of Lorraine. The climate is interfering more and more in the general assemblies (GA) of the large groups, whose high season will end at the end of May.
This was the case at Engie, for example, where a resolution of this type was tabled during the AGM held on Wednesday April 26. Fifteen investors with 1.9% of the capital requested a change in the articles of association to obtain that a consultation on the climate strategy becomes mandatory every three years. The resolution got 25%.
This is an insufficient result for the resolution to be adopted. But important enough to oblige Jean-Pierre Clamadieu, the chairman of the board of directors, to react. This application “is something the board will take into account in its reflections on how to continue the dialogue on these climate topics”, he said.
Vinci and TotalEnergies from 2020
In France, the climate began to infiltrate AGMs from 2020, via external resolutions tabled by shareholders of Vinci and TotalEnergies. “On the climate, they aim for the company to publish more information on its impact or they ask it to do more”, describes Lucie Pinson, director of the environmental NGO Reclaim Finance.
The other external resolution tabled this year in France targets TotalEnergies, whose GM is scheduled for May 26. Seventeen shareholders holding 1.5% of the capital urge the oil and gas giant to improve its performance in terms of greenhouse gas emissions. The leaders of TotalEnergies have not yet announced whether they have included the resolution on the agenda of the GA.
Only two companies, for hundreds of listed companies, the figure may seem low. But in France, filing a resolution is a challenge. “You need 0.5% of the capital, whereas in the United States it is enough to hold $2,000 in shares”, explains Vanessa Serret. Marie Marchais, Head of Engagement at the Responsible Investment Forum, agrees: “The content of the resolution must be written with tweezers, because French law stipulates that shareholders cannot encroach on the prerogatives of managers. »
The development of “say on climate”
Faced with the growing demands of some of the shareholders in climate matters, companies are taking the lead. Their fear? Lose the confidence of their main financiers, as has been the case for the British oil company BP since it announced an increase in its investments in hydrocarbons in February. Five pension funds have said they want to vote against the reappointment of the president at the general meeting which takes place on April 27. However, they are unlikely to succeed.
To put an end to such a scenario, TotalEnergies has submitted its climate plan to the vote of its shareholders every year for the past three years. In 2023, five other listed companies will follow the same so-called “say on climate” approach: the real estate companies Klépierre, Covivio and Icade, the electrical equipment manufacturer Schneider Electric and the asset manager Amundi. “Even if we have a drop in the number of these resolutions proposed by management compared to last year, we will remain at a certain level, relativizes Marie Marchais. More and more companies are committing to having their climate strategy voted on every three or five years. »
Reinforced climate dialogue between investors and shareholders
The “say on climate” approach is positive in terms of “shareholder democracy”, but does it really have an effect? For Patricia Charlety, professor and researcher in economics and finance at Essec, these internal resolutions “Show good intentions. They contain general and uninviting orientations”, which explains why they are massively approved.
The interpellation of management by shareholders seems more likely to move the lines. And this, even when the resolution is ultimately not on the agenda. ” When a resolution is tabled, the authors meet the management who can then undertake to follow up on their requests, even before they are put to the vote”, emphasizes Patricia Charlety.
These steps even cause a ” snowball effect “, according to Vanessa Serret. “Most listed companies are moving towards greater transparency of information, rejoices the researcher. Even if they are not questioned by their shareholders, the companies anticipate that one day or another this will be the case, so they publish more climate indicators. »
Lucie Pinson also recognizes the greater transparency of companies, but she is more circumspect. “We do not see a massive transformation of their economic model. And far too much money continues to flow into oil and gas projects.”regrets the director of Reclaim Finance.
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