LAPFF, the stewardship body for the LGPS, is again joining forces with manager CCLA to push FTSE 100 firms to let their shareholders vote on climate transition plans. For the sixth consecutive year, LAPFF and CCLA are gathering backing from fellow investors for their campaign on climate transition plans.
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Last year, investors representing £3.1trn in assets under managements, including Nordea, Brunel and Church Commissioners for England supported the initiative.
The pressure is starting to have an impact: around one-fifth of the FTSE 100 now offers shareholders a dedicated vote on their climate transition plans, but the campaigners hope to expand the number of firms offering transition votes.
Tessa Younger, Better Environment Lead at CCLA, said: “As investors focused on long-term value, we need to understand how companies are delivering on decarbonisation while strengthening their resilience to the physical impacts of climate change. Putting climate transition plans to a shareholder vote provides transparency and a clear mechanism for shareholders to assess whether a company’s pathway is credible. We are asking investors to join us in sending this message to the FTSE 100.”
Doug McMurdo, chair of the Local Authority Pension Funds Forum (LAPFF), added: “We know the climate catastrophe is not abstract; it is real and now. It is felt by people in our communities; our neighbours, friends and family. In addition to the physical impact on homes, workplaces, waterways and forests, it is impacting and will continue to impact the bottom line at the companies that we invest in and rely upon, for which people’s pensions and savings are invested. This matters to our beneficiaries and our communities, now and for decades to come.”
Among the firms putting climate plans to a vote are Unilever, London Stock Exchange Group, Centrica and Rio Tinto, with the proposals generally being backed by more than 90% of shareholders.
Notably absent are major financials and energy giants. BP last consulted shareholders on its climate transition plan in 2022 and has since announced a significant reversal of its ambitions.
Similarly, Barclays and Lloyds have so far not offered their shareholders a say on their climate strategies.
