A group of pension funds are calling on more than 70 companies to hold a vote on their climate transition plans ahead of next year's AGM season.
The Local Authority Pension Fund Forum and CCLA Investment Management, the Church of England's investment manager, have written to the chairs of 76 FTSE 100 companies which have not held a vote on their climate transition plans in the past three years.
The letter said companies should outline their transition plans to allow shareholders to make informed investment and stewardship decisions,
Wealth management firm, Prydis Wealth, is supporting the campaign.
Director Scott Murray said: "As an adviser specialising in enabling clients to invest in companies whose values and purpose are focused on the betterment of society and the environment, it is important to increase transparency about how companies will do just that."
The investors said by having a vote on transition plans, shareholders could initially show their confidence in them through a dedicated resolution rather than through other resolutions on the ballot.
Councillor Doug McMurdo, chair of LAPFF, said: "Given the considerable climate-related risks that major companies face and the implications for long-term company success, we are encouraging boards to provide investors with the chance to support their climate transition strategies or raise specific concerns.
"Such votes provide a great opportunity for boards to engage with their shareholders and wider stakeholders to strengthen their strategies and gain investor backing for their transition plans."
At the end of 2023, LAPFF and CCLA spearheaded an investor group writing to 35 of the highest emitting companies in the FTSE 350 index including those in the oil and gas, utilities and mining sectors.
After 21 responses were received, two intended to hold a vote at the 2024 AGM and one intended to hold a vote at its 2025 AGM. Five companies had previously put their transition plans to a vote.
tara.o'connor@ft.com
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