According to interviews with activist investors and fund managers by Reuters, votes on climate-related resolutions are expected to gain more support from large asset managers this year compared to previous years. In the United States, there have been 79 climate-related resolutions filed so far, surpassing the numbers from last year and 2019. The Sustainable Investments Institute predicts that the count could reach 90 by the end of the year. These resolutions cover topics such as emissions limits, pollution reports, and climate audits to demonstrate the financial impact of climate change on businesses. The main focus is on urging companies in various sectors to outline their plans for reducing carbon footprints in line with government commitments to achieve net zero emissions by 2050. Billionaire British hedge fund manager Chris Hohn is urging companies to have a credible plan with short-term targets in order to achieve net-zero targets by 2050. Hohn believes that without such a plan, companies are engaging in greenwashing and shareholders should hold them accountable. Some companies argue they already provide sufficient information on climate issues, but activists believe more executives are becoming 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 allow recurring shareholder votes on climate plans. While these votes are typically non-binding, they can lead to changes if they receive significant support from investors. "The calls for increased transparency and goal-setting are more direct now than they were in 2020," noted Daniele Vitale, head of governance for Georgeson, a London-based firm that advises companies on shareholder opinions. Many companies are committing to net-zero targets by 2050, in accordance with the Paris climate agreement, but few have set interim goals. A study by South Pole consultancy found that only 10% of 120 surveyed companies across various sectors have done so. Mirza Baig, head of investment stewardship at Aviva Investors, pointed out the lack of clarity on companies' plans and timelines for achieving these goals. Data analysis from J Safra Sarasin highlights the significant challenge ahead. Sarasin conducted a study on the emissions of approximately 1,500 firms in the MSCI World Index, which represents the world's listed companies. The study determined that if companies worldwide do not reduce their emissions, global temperatures could increase by more than 3 degrees Celsius by 2050. This is significantly higher than the goal set by the Paris accord, which aims to limit warming to "well below" 2 degrees Celsius, preferably 1.5 degrees Celsius. The study also revealed significant differences among industries: if all companies emitted at the same rate as the energy sector, the temperature rise would be 5.8 degrees Celsius, with the materials sector (including metals and mining) heading towards 5.5 degrees Celsius, and consumer staples (including food and drink) on track for 4.7 degrees Celsius. The calculations were primarily based on companies' reported emissions levels in 2019, covering Scope 1 and 2 emissions - those directly caused by a company, as well as the production of the electricity it purchases and utilizes. The pressure on sectors with high carbon emissions to be transparent about their climate goals is increasing. For example, ExxonMobil recently disclosed its Scope 3 emissions, prompting Calpers to withdraw a shareholder resolution. Calpers' head of corporate governance sees 2021 as a promising year for climate concerns, with more companies likely to reach agreements with activist investors. Exxon has requested permission to skip votes on four other shareholder proposals, three of which are related to climate issues. They mention reasons such as the company already making significant reforms. An Exxon representative stated that ongoing discussions with stakeholders led to the disclosure of emissions. No comments were given on the requests to skip votes by Exxon or the SEC, which had not made a decision as of late Tuesday. Activists are hoping for more action from BlackRock, the largest investor with $8.7 trillion in assets, who has pledged to take a stronger stance on climate issues. BlackRock recently called for boards to create a climate plan, disclose emissions data, and set clear short-term targets, warning that directors could be voted out at the AGM if they do not comply. It supported a resolution at Procter & Gamble's AGM, which focused on eliminating deforestation in supply chains, and passed with 68% support. Green Century Capital Management's spokesman, Kyle Kempf, called it a small victory and hopes for more from BlackRock in the future. BlackRock stated they will assess proposals on a case-by-case basis. Amundi also announced they will support more resolutions, while Vanguard seemed less certain about their stance. Lisa Harlow, Vanguard's stewardship leader for Europe, the Middle East, and Africa, expressed uncertainty about whether the company's support for climate resolutions this year would exceed its traditional rate of backing one in ten. Hohn, founder of $30 billion hedge fund TCI, is pushing for a regular mechanism to assess climate progress through annual shareholder votes. This "Say on Climate" resolution requires companies to present a detailed net zero plan, including short-term targets, for an annual non-binding vote. If investors are unsatisfied, they may have more leverage to vote down directors. There are indications that this initiative is gaining traction. Hohn has submitted seven resolutions through TCI, and plans to work with various organizations to file over 100 resolutions in different countries over the next two AGM seasons. Hohn believes that not all companies will support the Say on Climate, but is confident that they can win the votes through persistence and determination.