Tuesday, May 28, 2024

Proxy voting: climate and diversity risks come to the fore

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Maria Gill
Maria Gill
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For Canada, the updated voting policy states that most companies will have at least one woman on the board of directors by 2022, and that large companies will have boards of directors(s) of at least 30% women (policy adopted in 2020).

In addition, the ISS is expanding the coverage of its CA’s diversity policies and broadening gender considerations to include race in the UK and Ireland (along with previously announced racial diversity requirements in the US).

The company noted that climate change is now a major issue for shareholders, as many investors seek to better integrate climate risk considerations into investment, participation and voting processes. “

To this end, the International Space Station will introduce a CAs accountability policy for the world’s largest polluters in terms of greenhouse gas (GHG) emissions.

This policy includes a recommendation to vote against certain directors working for companies “currently identified as companies in the Climate Action Focus Group 100+,” which do not provide sufficient information — such as reports according to the Task Force on Climate Financial Disclosures — or that do not have Significant targets for reducing greenhouse gas emissions.

Additionally, starting in the 2023 proxy season, the ISS will recommend voting against responsible directors for all US companies with unequal voting rights (expanding a policy that currently only applies to companies launched since 2015).

For Canada, it also raised the threshold that leads to the analysis of the reaction to the proposals” say on pay From 70% to 80% of companies. The ISS noted that this change was made to align with recommendations of the Canadian Alliance for Good Governance.

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Further changes to the ISS’s climate and other specialist policies will be announced in January.

Georgina Marshall, head of global research and chair of the International Space Station’s Global Policy Council, said in a statement that shareholder voices increasingly include “stewardship-related decisions on a range of climate issues as well. Those and other environmental, social and governance issues, and changes announced for 2022, reflect the changes announced.” Next steps along the way on climate-related issues that many investors have indicated they consider important and will support.”

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