Bloomberg: Investors Demand Climate-Risk Disclosure in 2013 Proxies

According to Ernst & Young LLP, more than 40% of shareholder resolutions submitted in 2012 deal with environmental and social issues. The environmental impact of hydraulic fracturing, or fracking, continues to receive increasing attention from shareholders.

Avery Fellow, of Bloomberg BNA, writes:

“Shareholders are filing resolutions asking companies to disclose physical risks posed by climate change for the first time this proxy season, according to representatives of sustainable investor groups.
Shareholders also are continuing to file an increasing number of sustainability related resolutions asking companies to set greenhouse gas emission reduction goals, publish sustainability reports, pursue energy efficiency, and disclose information about hydraulic fracturing operations.

Although shareholder resolutions on sustainability rarely receive a majority vote, they can still prompt companies to take action to avoid risk to their reputation or address investor concerns, said Jonas Kron, director of shareholder advocacy at Trillium Asset Management. In addition, investors often are engaged in discussions with companies that lead to resolutions being withdrawn before they go up for a vote…”

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