AUM in Action

Canadian Investors’ Climate Voting Inconsistent

A new report from Investors for Paris, an investor network aiming to promote accountability among Canadian publicly traded companies on their net zero plans, has revealed “great inconsistency” in climate voting. The report analysed the voting patterns of 35 investment firms, which are all signatories of Climate Action 100+ (CA100+) – an investor-led initiative engaging with the world’s largest corporate greenhouse gas emitters on climate change – and participants in finance-led initiative Climate Engagement Canada (CEC), which drives dialogue between finance and the industry to promote a just transition to net zero by 2050. This is Investors for Paris’ second Canadian Climate Voting Report, which assesses the climate proxy voting record of select Canadian investors committed to decarbonising their investment portfolios via engagement. The report also considers whether those investors voted consistently to support climate-friendly shareholder resolutions. “In analysing voting records, we aim to applaud leadership, ensure accountability, and daylight where there is more work to be done,” Investors for Paris said in a statement. Investors are ranked by the proportion of votes that they wholly supported, excluding abstentions. Firms featured in this year’s report included Canada Post Pension Plan, Aviva, Nordea Investments, Manulife IM, Montrusco Boston and IG Wealth Management. Similar to last year, support for climate-related resolutions was inconsistent among the 35 investors assessed, the report showed. However, there has been an incremental increase in the rate of support for climate-related resolutions. The report assessed a total 26 resolutions filed at 21 companies, all of which were aligned with the climate engagement principles of both CA100+ and CEC – namely, corporate disclosure of climate risks and opportunities, and the adoption of policies necessary to align with a 1.5°C degree future.

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