Recommendations

Shareholders need to use the full extent of their rights to incentivize oil and gas companies to act in the long-term best interest of their shareholders and the global economy. In order for investors to better drive change on a company level, it is recommended that asset managers:

• Explicitly commit to voting for non-prescriptive shareholder resolutions that request emission reduction targets in line with Paris
• Align stewardship policies to reflect voting for shareholder resolutions not as an escalation but as a necessary addition to engagement to hold corporations accountable
• Vote against management Say on Climate resolutions when the company is not in line with Paris.
• Improve transparency on proxy voting by publishing voting policies, voting records, and voting rationales in a manner that is timely and user-friendly.
• Timely pre-declaration of voting intentions for non-prescriptive climate resolutions at Big Oil
• For CA100+ company leads; flag resolutions through the CA100+ process by timely pre-declaration of your vote
• Escalate at Oil and Gas companies failing to make progress using tools focused on decarbonizing your portfolio and the world economy such as co-filing resolutions, voting against directors, auditors, shareholder litigation.
• Assess company emission reduction targets on their quality, not their relative performance.