CPPIB Pushes Companies to Improve Climate Related Disclosures and Practices
November 03, 2022
The Canada Pension Plan Investment Board is using its clout as an institutional investor to push companies along on their climate commitments.
Earlier this month, the board — which invests on behalf of the Canada Pension Plan (CPP) — voted against 65 directors at 35 companies, concluding that the companies “failed to demonstrate adequate consideration of physical and transition-related impacts from climate change.”
The conclusion was aligned with the board’s new “escalating” response, which was put in place in 2021. Essentially, the CPPIB now requires climate-related shareholder proposals that provide deeper disclosures on topics like operational emissions management, asset portfolio resilience and public policy.
If a company doesn’t have a concrete plan — even after the CPPIB asks them to develop one — the board will vote against the chair of whichever committee is responsible for developing such a strategy. Following further inaction, the board will cast a vote against the whole committee and, ultimately, the entire slate of directors.
To learn more about the CPPIB’s climate process, click on more information for the full article.
.png)
.png)
.png)