Fifteen investors filed a shareholder resolution asking Engie to implement a Say on Climate mechanism. The resolution proposes to give the possibility for the board of directors to organize a regular vote on its climate strategy and its implementation.
We urge shareholders to support this climate resolution at Engie’s Annual General Meeting on April 26th, as it aims at increasing climate disclosure and strengthening shareholder dialogue.
In March 2023, 15 European investors, from France, Belgium, and the Netherlands, filed a climate-related shareholder resolution asking Engie to regularly organize a Say on Climate vote at its Annual General Meeting (AGM). The Say on Climate is an item put on the agenda of an AGM that enables shareholders to vote on the approval of the company’s climate strategy. It allows investors to express their opinion on the completeness and credibility of this strategy and its implementation.
The resolution filed by investors at Engie aims at amending the company’s articles of association to include a Say on Climate mechanism. If the resolution is adopted, the articles of association will mention that the board of directors can organize a vote on the company’s climate strategy every three years — or as soon as there are significant changes — and a vote on the implementation of this strategy every year.
The shareholders also asked Engie to add to the agenda of its AGM an item with a shareholders’ discussion but without a vote, in order to present a list of key climate indicators that they want the company to publish. Disclosure of these indicators would enable investors to evaluate the alignment of Engie’s climate plan with a trajectory that aims at limiting global warming to 1.5°C, with low or no overshoot and a limited volume of negative greenhouse gas emissions.
Since the resolution involves a modification of the articles of association, it must receive the approval of at least 66% of the shareholders to be adopted. Support from all climate-conscious shareholders is therefore essential.
This resolution sends a strong signal to Engie on the need to increase the ambition and granularity of its climate plan. The company is failing to present certain key information related to its climate strategy. In addition, Engie is still very far away from aligning with reference scientific scenarios due to the development of gas-fired power plants and LNG infrastructure, which are clearly incompatible with a 1.5°C trajectory according to the International Energy Agency.
Should the resolution be adopted, the company will remain free to organize a regular vote on its climate strategy, as well as to publish the indicators proposed by shareholders. This non-binding nature is part of an uncertain French legal context that forces investors to remain careful when drafting resolutions in order to minimize the risk of rejection by issued company.
Despite the resolution’s cautiousness, we call on investors to support this resolution because it contributes to increase transparency on Engie’s climate strategy and it reinforces climate-related shareholder dialogue.