Guide for companies

Guide for companies

Publish a climate action transition plan and put it to an annual shareholder vote

Companies should:

1 Publicly endorse this concept. 
2 Develop a credible climate action transition plan and publish an annual update. See here.
3 Propose a resolution. A template resolution for the US can be found here.
4 Tie executive pay to the delivery of the plan.
5 Continue to disclose key climate data. This will allow shareholders to monitor ongoing implementation of your plan.

Why should companies act?

  • Adopting a strong accountability mechanism for your climate change plans demonstrates credibility to investors, employees and clients and strengthens sustainability branding
  • Sustained engagement with shareholders (and hence informing bondholders and banks) on the company’s climate action transition plan will lower cost of capital
  • Leadership can deliver long-term share price performance
  • Shareholders are taking an increasingly assertive stance with companies failing to develop credible plans – leaders will enjoy the full benefits of positive exposure of their climate alignment