The Church of England Pensions Board has confirmed it will vote against Volkswagen’s board at the upcoming AGM, urging the automaker to set stronger emissions reduction targets, and to provide public disclosure on its lobbying activities regarding climate change policy.
According to CofE Pensions, VW’s performance on setting targets and its transparency related to lobbying “lags its German peers”, such as Mercedes-Benz and BMW.
Unlike VW, both of these companies have produced lobbying disclosures, and have been independently assessed as having stronger short and medium-term emissions reduction targets by the Transition Pathway Initiative.
CofE Pensions has previously submitted shareholder amendments at Volkswagen seeking disclosures on the company approach to corporate climate lobbying, though none have passed.
Laura Hillis, director of climate at the Church of England Pensions Board, said: “Volkswagen has committed to align its business with a net-zero emissions future. Yet the company’s activities on climate lobbying, and insufficient emissions reduction targets, continue to hold it back from realising that ambition.
“Over more than four years of climate engagement with the company we have repeatedly called for the company to set emissions reduction targets aligned with limiting global warming, and climate lobbying disclosure. Given the company is still yet to meet these expectations, as shareholders we intend to use our votes to hold the Board of Management and the members of the Supervisory Board accountable.”
CofE Pensions has requested that Volkswagen align its short and medium-term emissions reduction targets with the science of limiting global warming to 1.5°C, and “take advantage of” the opportunity for the company in transitioning to net zero.
The Volkswagen AGM will be held on 10 May 2023.
Last October, Swedish pension funds AP7, AP2, AP3 and AP4, Danish AkademikerPension and CofE Pensions took VW to court over its alleged climate lobbying activities.
