William Eichler 03 October 2023

Council pension funds call for climate vote

Council pension funds call for climate vote  image
Image: szefei / Shutterstock.com.

Local authority pension fund managers have urged FTSE companies to give shareholders more of a say on plans to reach net zero.

The Local Authority Pension Fund Forum (LAPFF), a voluntary association of 87 public sector pension funds and seven pool companies based in the UK, has co-signed a letter to the chairs of 35 FTSE 350 companies setting out their expectations for shareholder votes on climate transition plans.

While some companies already hold shareholder votes on their decarbonisation plans, the letter notes that this was ‘far from standard practice, including among high-emitting companies.’

The letter, signed by 18 investors representing £1.8tn AUM, stated: ‘Having such a vote will enable shareholders in the first instance to express their view on transition plans through a specific resolution rather than immediately voting against the chair or another board member.’

Cllr Doug McMurdo, chair of LAPFF, said: ‘Climate change is one of the biggest risks facing investors. Therefore, it only makes sense that companies provide shareholders with a vote on how they are planning and delivering the transition to a decarbonised economy.

‘For those companies not providing its own investors with the opportunity to have a say on climate plans, the focus of shareholder attention will inevitably first fall on director elections.’

If this article was of interest, then check out our feature, 'Navigating the great LGPS investment reset'.

SIGN UP
For your free daily news bulletin
Highways jobs

Director of Public Health

Royal Borough of Greenwich
Up to £131,210
The Public Health department is at the heart of the council’s business. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Head of Regeneration and Growth

Plymouth City Council
£68,387 - £74,411 (MFS and relocation available, pay award pending)
This is a unique opportunity to lead our award-winning development team and directly deliver hundreds of millions of pounds of projects. Plymouth, Devon
Recuriter: Plymouth City Council

Director of Adult Social Care

Wiltshire Council
£119,390 - £127,137
Join us as the Director of Adult Social Care and make a real difference to people’s lives. Wiltshire
Recuriter: Wiltshire Council

Assistant Director Planning, Performance & Engagement

East Sussex County Council
up to £97,700
With strong local communities, unspoilt countryside and vibrant coastal towns, East Sussex offers an exceptional quality of life to many. East Sussex
Recuriter: East Sussex County Council

Director of Finance & Commerce

Lancashire County Council
Up to £114,339
You will play a critical role in driving the organisation through complex change and innovation. Lancashire
Recuriter: Lancashire County Council
Linkedin Banner