Dear CII Members
Please see important updates from the Climate Action 100+ initiative, below.
CLIMATE ACTION 100+ FLAGGED DIRECTOR VOTE: VALERO
Climate Action 100+ flags key shareholder proposals and other votes on the initiative’s website for investors to take into consideration as they decide how to vote during proxy season. Flagged votes are aligned with both the goals of the initiative and informed by 5 years of engagement history with the relevant company, since the Climate Action 100+ initiative was launched in 2018.
[New] Valero Energy Corp (May 09 AGM) Mercy Investment Services urges investors to vote AGAINST the re-election of director nominees Robert A. Profusek, Deborah Majoras, and Rayford Wilkins for failing to provide accurate and timely disclosure of environmental risks and opportunities, such as those associated with climate change.
Via Mercy’s exempt solicitation:
“As a long-term Valero Energy (VLO) shareholder, we believe the time has come to hold VLO’s Board accountable for its inadequate oversight of the company’s unique climate-related risks and opportunities.
After nearly a decade of dialogue, and more than four years of engagement with VLO’s senior management as members of the VLO engagement team for the Climate Action 100+ initiative (CA100+), there has been limited progress on our requests, which significantly align with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). We are concerned that VLO’s Board is failing to properly exercise its risk management and oversight responsibilities of Valero’s low-carbon fuels growth strategy given the critical risks climate change poses to its business operations.”
CA100+ FLAGGED VOTE INVESTOR PARTICIPATION OPPORTUNITIES
PRE-DECLARATION: Investors may choose to pre-declare their voting intention to improve transparency and communication amongst shareholders. PRI signatories can pre-declare their voting intention on any resolution or vote on the PRI Resolution Database. PRI disclaimer here. Links to relevant pre-declaration pages are listed alongside Climate Action 100+ Flagged Votes.
AO / AM ENGAGEMENT: Asset owners may choose to reach out to their underlying investment managers, who submit votes on their clients’ behalf, to ensure the managers are aware of Climate Action 100+ Flagged Votes and information regarding priority themes, as reflected in the blog series (Climate Lobbying, Asset Retirement Obligations, and Just Transition). More specifically, asset owners may choose to highlight the flagged votes at companies of which they are shareholders and where they act as collaborators on relevant engagements teams. The public nature of the flagged votes webpage allows for transparent information sharing.
SUBSCRIBE TO CERES’ WEEKLY NORTH AMERICA PROXY VOTER NEWSLETTER
As annual general meetings approach, Ceres distributes dozens of memos describing the merits of climate-related resolutions to proxy voters. Well-crafted proposals bring key concerns to corporate management’s attention by calling for improved action, disclosure and oversight. You are invited to join Ceres’ proxy voter mailing list, to receive weekly updates on memos, event invitations, and Climate Action 100+ flagged votes by contacting Ryan Taylor.
Kind regards
Morgan