Paris, April 26, 2023 – Almost half of ENGIE’s private shareholders supported the resolution tabled by 16 investors, which called for an improvement in the dialogue between management and its shareholders through the organization of a vote on its climate plan and its implementation (known as “Say on Climate”). Reclaim Finance applauds those who voted in the light of the climate emergency and calls on the French government to generalize the practice of Say on Climate, which is widely approved by investors. As for ENGIE, it is clear that its climate plan lacks credibility and must be improved.
This afternoon, at ENGIE’s annual general meeting (AGM) held at the Cité des Sciences et de l’Industrie in Paris, shareholders were asked to vote on a resolution tabled by 16 institutional investors proposing an amendment to the company’s bylaws to allow management to hold a consultative vote on its climate strategy every three years – or following a modification of the strategy, and to vote annually on its implementation.
Although the vote did not reach the 66% necessary for the adoption of the resolution (1), the resolution was approved by 24.38% of the shareholders, or 44.5% excluding the French State. ENGIE chairman, Jean-Pierre Clamadieu, acknowledged “that a significant number of the shareholders supported this resolution” and added: “We will therefore have to take this into account to improve the shareholder dialogue” (2). It is up to him to commit to organizing an annual vote on ENGIE’s climate plan to meet the demand.
The signal could not be clearer: if you exclude the votes for state-owned shares, shareholders have expressed a significative support for this important resolution. The way forward is now clear: ENGIE must commit to consulting its shareholders every year and strengthen the credibility and ambition of its climate plan. The ball is now in the government’s court, which must respond by applying Say on Climate for all large companies, as it did for the Say on Pay.
Antoine Laurent, Head of Advocacy France at Reclaim Finance
The result illustrates the growing desire among investors to see Say on Climate become widespread (3). This is a legitimate demand since such a practice allows them to ensure that the companies in their portfolios are accountable for the quality of their climate policy, allowing thetm to meet their own obligations to their clients.
Reclaim Finance calls on the French Government to listen to the demand expressed by investors by extending the Say on Climate to all large companies and by regulating its content.
Following the intervention of the representatives of the shareholders who tabled the resolution, Jean-Pierre Clamadieu committed to “continue this debate on the basis of indicators that will allow them to measure progress”. We are therefore waiting for ENGIE to specify how they intend to fill the gaps in their climate plan (4).
Last year, 97% of ENGIE shareholders, including Amundi, voted in favor of the company’s climate plan despite its lack of credibility and ambition. (5) Reclaim Finance will carry out a more detailed analysis of investor votes to identify which investors opposed this resolution this year.
