According to interviews conducted by Reuters with activist investors and fund managers, it is expected that votes related to climate change will receive more support this year from large asset managers who are seeking clarity on how executives intend to thrive in a low-carbon world. In the United States, there have been 79 climate-related resolutions filed by shareholders so far, which is higher than the total number filed in 2020 and 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 demonstrate the financial impact of climate change on businesses. The overarching goal is to urge companies in various sectors, including oil, transportation, food, and beverage, to outline their plans for reducing their carbon footprints in the coming years, aligning 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 goals is considered greenwashing, and shareholders should hold companies accountable. 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 that more executives seem willing to make 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 shareholder votes on climate plans. Although these resolutions are typically non-binding, they often lead to changes when supported by 30% or more of investors, prompting executives to make adjustments to satisfy as many shareholders as possible. Daniele Vitale, head of governance for Georgeson in London, stated that the calls for increased disclosure and target-setting are more precise than in 2020. Many companies are now setting net-zero targets for 2050, aligning with the Paris climate accord, but few have established interim targets. A study by South Pole found that only 10% of 120 companies surveyed had done so. Mirza Baig, from Aviva Investors, noted the lack of clarity on companies' plans and the speed of progress. Data from J Safra Sarasin reveals the significant challenge ahead. Sarasin conducted a study on the emissions of approximately 1,500 companies in the MSCI World Index, which represents the world's listed companies. The study concluded that if companies worldwide do not reduce their emissions, global temperatures could increase by more than 3 degrees Celsius by 2050. This projection falls short of the goals set by the Paris accord, which aims to limit warming to below 2 degrees Celsius, preferably 1.5 degrees Celsius. The study also revealed significant variations in emissions among different industries. For instance, if all companies emitted at the same rate as the energy sector, global temperatures could rise by 5.8 degrees Celsius. The materials sector, which includes metals and mining, is projected to contribute to a 5.5-degree Celsius increase, while consumer staples, such as food and drink companies, are on track for a 4.7-degree Celsius rise. The calculations were primarily based on companies' reported emissions in 2019, covering Scope 1 and 2 emissions - those directly caused by the company, as well as the electricity it purchases and uses. Sectors with high carbon emissions will likely face increased investor pressure for transparency, as demonstrated by ExxonMobil's disclosure of its Scope 3 emissions in January. This move led Calpers to withdraw a shareholder resolution, signaling a trend of companies making agreements with activist investors on climate concerns. Calpers' Simiso Nzima sees 2021 as a promising year for climate action, but Exxon has requested to skip votes on four other shareholder proposals, including three related to climate issues. They mention reasons such as the company having already made significant reforms. An Exxon representative stated that ongoing discussions with stakeholders led to the disclosure of emissions. He did not comment on requests to skip votes, nor did the SEC, which had not made a ruling on Exxon's requests as of late Tuesday. Activists are hopeful for more action from BlackRock, the world's largest investor with $8.7 trillion in assets, who has pledged to take a stricter stance on climate issues. Last week, BlackRock urged boards to develop a climate plan, release emissions data, and set strong short-term targets, warning that directors could face opposition at the AGM if not compliant. BlackRock supported a resolution at Procter & Gamble's AGM in October, asking the company to report on efforts to eliminate deforestation in its supply chains, which passed with 68% support. Green Century Capital Management hopes this is a positive sign for the future. When asked about its plans for 2021 and supporting resolutions, BlackRock stated it would assess each proposal on a case-by-case basis. Amundi also announced it would back more resolutions, while Vanguard appeared less certain. Lisa Harlow, who is Vanguard's stewardship leader for Europe, the Middle East, and Africa, expressed uncertainty about whether the support for climate resolutions this year would surpass the usual rate of backing one in ten. In an effort to assess climate progress through annual shareholder votes, Britain's Hohn, the founder of a $30 billion hedge fund TCI, aims to establish a regular mechanism. This mechanism, known as a "Say on Climate" resolution, involves investors requesting a company to present a detailed net zero plan with short-term targets for an annual non-binding vote. If investors are not satisfied, they would have stronger grounds to vote down directors. The initiative seems to be gaining traction. Hohn has submitted seven resolutions through TCI and plans to file over 100 resolutions in various countries with the help of The Children's Investment Fund Foundation. Hohn is confident that despite facing opposition, they can secure enough votes to support the Say on Climate.