According to interviews conducted by Reuters with activist investors and fund managers, votes on climate-related resolutions are expected to gain more support this year from large asset managers who are seeking clarity on executives' plans to thrive in a low-carbon world. In the United States, there have been 79 climate-related resolutions filed so far, compared to 72 last year and 67 in 2019, as reported by the Sustainable Investments Institute. The number of resolutions could potentially reach 90 this year. These resolutions cover a range of topics, such as emissions limits, pollution reports, and "climate audits" that demonstrate the financial impact of climate change on businesses. The overall goal is to urge companies in various sectors to outline their strategies for reducing carbon footprints in the future, in alignment with government targets to achieve net zero emissions by 2050. Billionaire British hedge fund manager Chris Hohn believes that companies setting net-zero targets for 2050 without a credible plan and short-term targets are engaging in greenwashing. He is advocating for shareholders to hold these companies accountable. Many companies argue that they already provide sufficient information on climate issues, but some activists believe that more executives are open to making deals this year. Royal Dutch Shell, Spanish airports operator Aena, UK consumer goods company Unilever, and US rating agency Moody's have all announced plans to offer recurring shareholder votes on their climate plans. While these votes are typically non-binding, they often lead to changes when they receive significant support from investors. "The push for greater transparency and goal-setting is stronger now compared to 2020," explained Daniele Vitale, head of governance at Georgeson in London, a firm that advises businesses on shareholder perspectives. Many companies are committing to net-zero targets by 2050, aligning with the Paris climate agreement, but only a small percentage have set interim goals. A study by South Pole found that just 10% of 120 companies surveyed had done so across various industries. Mirza Baig, head of investment stewardship at Aviva Investors, noted the lack of clarity on companies' plans and timelines for achieving these targets. Data analysis from J Safra Sarasin illustrates the magnitude of the challenge ahead. Sarasin examined the greenhouse gas emissions of around 1,500 companies in the MSCI World Index, which represents the world's listed companies. The study determined that if these companies do not reduce their emissions, global temperatures could increase by over 3 degrees Celsius by 2050. This is far above the Paris agreement target of keeping warming to below 2 degrees Celsius, preferably 1.5 degrees Celsius. The research also revealed significant variations among industries. For instance, if all companies emitted at the same rate as the energy sector, the temperature would rise by 5.8 degrees Celsius. The materials sector, which includes metals and mining, is projected to increase temperatures by 5.5 degrees Celsius, while consumer staples like food and drink could lead to a 4.7 degree Celsius rise. The calculations are primarily based on companies' reported emissions in 2019, covering both direct emissions and those associated with the electricity they purchase and use (Scope 1 and 2 emissions). Sectors that have high carbon emissions are expected to face increased pressure from investors to provide more transparency. For instance, ExxonMobil, which has been slow in setting climate goals, recently disclosed its Scope 3 emissions, prompting Calpers to withdraw a shareholder resolution. Calpers' Simiso Nzima believes that 2021 will be a significant year for climate concerns, with more companies likely to engage with activist investors. Exxon has requested permission from the SEC to skip votes on four other shareholder proposals, three of which are related to climate issues. They mention reasons like the company having already made significant reforms. An Exxon spokesperson stated that ongoing discussions with stakeholders led to the emissions disclosure. They did not comment on the requests to skip votes, as the SEC had not yet ruled on Exxon's requests as of late Tuesday. Activists are looking for more action from BlackRock, the largest investor globally with $8.7 trillion in assets, who has promised a stricter stance on climate issues. Last week, BlackRock urged boards to create a climate plan, disclose emissions data, and set strong short-term goals, or face the possibility of directors being voted out at the AGM. It supported a motion at Procter & Gamble's AGM in October, calling for a report on efforts to stop deforestation in its supply chains. The resolution passed with 68% support, with Green Century Capital Management hoping it signals future action from BlackRock. BlackRock's spokesperson stated they will evaluate proposals on a case-by-case basis. Amundi, Europe's largest asset manager, also plans to support more resolutions, while Vanguard appears less certain. Lisa Harlow, Vanguard's stewardship leader for Europe, the Middle East, and Africa, mentioned that it is challenging to predict whether their support for climate resolutions this year will exceed their usual rate of backing one in ten. In a bid to assess climate progress through yearly shareholder votes, Britain's Hohn, the founder of a $30 billion hedge fund TCI, is pushing for a regular mechanism. The proposed "Say on Climate" resolution would require companies to present a detailed net zero plan with short-term targets for an annual non-binding vote. If investors are not satisfied, they could potentially vote down directors. The initiative appears to be gaining momentum. Hohn has submitted a minimum of seven resolutions through TCI. The Children’s Investment Fund Foundation, established by Hohn, is collaborating with campaign groups and asset managers to submit over 100 resolutions in the upcoming two AGM seasons across various countries. Hohn expressed confidence to pension funds and insurance companies that although not all companies will back the Say on Climate, they can ultimately secure the votes needed through perseverance.