According to interviews with activist investors and fund managers by Reuters, votes on climate-related resolutions are expected to gain more support this year from large asset managers who are seeking clarity on how executives plan to adapt and succeed 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. The Sustainable Investments Institute estimates that this number could reach 90 by the end of the year. These resolutions cover topics such as emissions limits, pollution reports, and climate audits that show the financial impact of climate change on businesses. The overall goal is to urge companies in various sectors, from oil and transportation to food and beverage, to outline their plans for reducing carbon footprints in the coming years in alignment with government commitments to achieve net zero emissions by 2050. Billionaire British hedge fund manager Chris Hohn believes that setting net-zero targets for 2050 without a credible plan with short-term targets is considered greenwashing, and shareholders should hold companies accountable for this. Hohn is advocating for companies worldwide to have a recurring shareholder vote on their climate plans. Some companies argue that they already provide sufficient information on climate issues, but activists are noticing more executives showing interest in 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 such a vote. Although these resolutions are typically non-binding, they often prompt changes when they receive significant support from shareholders, as executives aim to please as many investors as possible. Daniele Vitale, the head of governance for Georgeson in London, noted that the calls for increased transparency and goal-setting are more specific now compared to 2020. Companies are increasingly committing to net-zero targets for 2050 in alignment with the Paris climate agreement, but very few have set interim targets. A study by South Pole consultancy found that only 10% of 120 companies surveyed had published interim targets, leading to ambiguity and uncertainty about the path companies will take towards achieving their goals. According to Mirza Baig from Aviva Investors, there is a lack of clarity on how quickly companies will make progress. Data analysis from J Safra Sarasin shows the magnitude of the challenge companies face in meeting these targets. Sarasin conducted a study on emissions from around 1,500 companies in the MSCI World Index, which represents the world's listed companies. The study concluded that if global companies do not reduce their emissions, global temperatures could increase by over 3 degrees Celsius by 2050. This falls short of the Paris accord goal of limiting warming to below 2 degrees Celsius, preferably 1.5 degrees Celsius. The study also found significant variations in emissions levels among different industries. For instance, if all companies emitted at the same rate as the energy sector, global temperatures would rise by 5.8 degrees Celsius, while the materials sector and consumer staples sector would lead to temperature increases of 5.5 and 4.7 degrees Celsius respectively. The calculations are primarily based on companies' reported emissions in 2019, covering both Scope 1 and 2 emissions - those directly caused by a company and the production of electricity it purchases and uses. Industries with high carbon emissions will likely face increased pressure from investors to be transparent about their climate impact. For example, ExxonMobil, known for lagging behind in setting climate goals, recently disclosed its Scope 3 emissions, prompting Calpers to withdraw a shareholder resolution. Calpers' head of corporate governance, Simiso Nzima, believes that 2021 will be a significant year for climate concerns, with more companies expected to engage with activist investors. Despite this, Exxon has requested to skip votes on several shareholder proposals related to climate issues. They mention reasons such as the company already making significant reforms. An Exxon representative mentioned ongoing discussions with stakeholders that resulted in the disclosure of emissions. The SEC had not made a ruling on Exxon's requests as of late Tuesday. Activists are looking for more action from BlackRock, the largest investor in the world, who has promised a stricter stance on climate issues. BlackRock recently urged boards to develop a climate plan, disclose emissions data, and set strong short-term targets to avoid directors being voted out at the AGM. It supported a resolution at Procter & Gamble's AGM, held in October, that requested the company to provide a report on its efforts to eliminate deforestation in its supply chains. The resolution passed with 68% support. Kyle Kempf, a spokesman for Green Century Capital Management, expressed optimism about the future actions of BlackRock, calling their support a small step in the right direction. When asked about their plans for 2021, BlackRock stated that they will evaluate each proposal on a case-by-case basis. Amundi, Europe's largest asset manager, also stated they would support more resolutions. Vanguard, the world's second-largest investor, appeared less certain about their stance on these issues. Lisa Harlow, Vanguard's stewardship leader for Europe, the Middle East, and Africa, expressed uncertainty about whether the support for climate resolutions this year would surpass their traditional rate of supporting one in ten. TCI's founder, Britain's Hohn, is pushing for a regular mechanism to assess climate progress through annual shareholder votes. This initiative, known as "Say on Climate," involves investors requesting companies to provide a detailed net zero plan for approval through an annual non-binding vote. If investors are unsatisfied, they may have more leverage to vote down directors. Initial indications suggest that this movement is gaining traction. Hohn has submitted a minimum of seven resolutions through TCI. The foundation he established, The Children’s Investment Fund Foundation, is collaborating with campaign groups and asset managers to submit over 100 resolutions in the upcoming two AGM seasons across various countries including the United States, Europe, Canada, Japan, and Australia. Hohn expressed confidence that despite challenges, they can secure votes for the Say on Climate initiative.