Supporting shareholder resolutions on climate reporting in BP and Shell

Voting intention 15 April 2015

Norges Bank Investment Management will vote in favour of the Special Shareholder Requisitioned Resolution submitted for shareholder vote at the Annual General Meetings of BP and Royal Dutch Shell.

The shareholder resolutions asks for further information on risks and opportunities associated with climate change. This information is proposed to be included as a part of their annual reporting from 2016. 

– As a long-term investor, we believe that the identification of future scenarios for climate regulation, carbon pricing, and environmental conditions is a useful tool to support strategic decision-making and we thereby support these resolutions, says Chief Investment Officer Equity Strategies Petter Johnsen.

In line with our expectation document on climate change, we believe that boards should recognize the necessity of integrating climate change related challenges and opportunities in the investment planning and risk management, and ensure that responsibility is clearly defined within the organization. We commend the Boards of BP and Royal Dutch Shell for recommending support for the shareholder requisitioned resolution. 

We consider the shareholder requisitioned resolution to support our own focused efforts in this area. Climate, and possible financial risk connected to this, has been an important part of our responsible management for many years.

This is the first time we publish our voting intention prior to the annual shareholder meeting. We will publish our voting intentions for a selected number of companies and for certain fundamental issues that we emphasize in particular. This is in-line with our strategy plan where it states that we will make our voting intentions public before the annual shareholder meetings to increase transparency, and encourage initiatives to strengthen the vote execution chain.

Read our expectations to companies on Climate Change Strategy

 

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 other shareholders. This disclosure reflects Norges Bank Investment Management’s intention as at the date of publication but such intention is subject to change at our discretion. Norges Bank Investment Management is not subject to any prohibition on dealing after the publication of this disclosure. Norges Bank Investment Management’s holdings available for voting from time to time may differ from those set out in lists of holdings as of year-end.