16 December 2020, London - Ninety One, the global investment manager, announces its support for the ‘Say on Climate’ initiative to facilitate deeper engagement between companies and their investors on their climate transition plans. The initiative encourages listed companies to submit a Climate Transition Action Plan to a shareholder vote at their annual general meeting. The non-binding resolution would be a crucial step to put greater structure around how shareholders can assess the strength of companies’ plans to address climate risk in their businesses.
Hendrik du Toit, Chief Executive Officer, said: “Despite incremental improvements in disclosure standards on emissions, we are still just scratching the surface. As active managers and stewards of our clients’ money, we believe the ‘Say on Climate’ initiative will create a more effective dialogue between companies and investors through the opportunity to present their transition plans. In support of the good work by the TCFD and the expected improvement of disclosure, we want to support companies that have made significant emissions pledges to achieve those pledges. The enhanced engagement proposed in the initiative is a real step towards better progress on climate transition, aligned with the Paris Agreement.”
To underline its support, Ninety One will be incorporating ‘Say on Climate’ into its voting policies and engagement strategy. Initially, Ninety One will engage with a selection of portfolio companies to encourage boards to voluntarily publish a Climate Transition Action Plan and propose a resolution from management.
Therese Niklasson, Global Head of Sustainability said: “Those working with carbon emissions data in detail know that dispersion in disclosure standards is stark. Requiring listed companies to present their transition plans annually will increase the pressure on management teams to take transition plans seriously. We want to steer companies towards higher disclosure standards, better plans and ultimately more sustainable, resilient business models - helping future-proof returns for all stakeholders.”
Ninety One is committing to adding an advisory vote on its transition plans at its AGM in 2021.
Learn more about the ‘Say on Climate’ initiative on their website: