Support for shareholder proposal on climate change at TransCanada Corporation

20 April 2018

Norges Bank Investment Management will vote in favour of the shareholder proposal on climate change reporting, and all other resolutions put forth to shareholder approval at the Annual General Meeting of TransCanada Corporation on 27 April 2018.

Our rationale

We encourage companies to consider the sensitivity of their long-term business strategy and profitability to different future regulatory and physical climate scenarios. The scenarios should include low-emissions scenarios incorporating countries’ expressed national, bilateral or international climate commitments and ambitions. One such scenario should consider the successful implementation of policies to limit the likelihood of temperatures rising above 2 degrees Celsius. We support the integration of relevant climate change challenges and opportunities in a company’s business management, such as investment planning, risk management, and reporting.

We commend the board’s willingness to support this shareholder proposal and commitment to improving climate change disclosure.

Our expectations on climate change

TransCanada Corporation Resolutions

NUMBER PROPOSAL MANAGEMENT RECOMMENDATION VOTING INTENTION
Management proposals
1.1 Elect Director Kevin E. Benson For For
1.2 Elect Director Stephan Cretier For For
1.3 Elect Director Russell K. Girling For For
1.4 Elect Director S. Barry Jackson For For
1.5 Elect Director John E. Lowe For For
1.6 Elect Director Paula Rosput Reynolds For For
1.7 Elect Director Mary Pat Salomone For For
1.8 Elect Director Indira V. Samarasekera For For
1.9 Elect Director D. Michael G. Stewart For For
1.10 Elect Director Siim A. Vanaselja For For
1.11 Elect Director Thierry Vandal For For
2 Approve KPMG LLP as Auditors and Authorize Board to Fix Their Remuneration For For
3 Advisory Vote on Executive Compensation Approach For For
Shareholder proposals
4 SP 1: Report on Climate Change For For
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Important legal notice

Norges Bank Investment Management’s approach to responsible investing includes disclosing our voting decisions, in some cases in advance of the relevant meeting. This is only intended to provide information and is not solicitation or encouragement as to how others should vote. This disclosure is not investment research, advice or recommendation. Norges Bank Investment Management’s voting intention is an internal decision and has not been agreed with any other shareholders. Norges Bank Investment Management is not subject to any prohibition on dealing after the publication of this disclosure. Norges Bank Investment Management’s holdings and holdings available for voting from time to time may differ from those set out in lists of holdings as of year-end.