Swedish pension fund AP7 has changed its previous decision to vote against National Grid’s chair and CEO at the upcoming annual general meeting, after the company agreed to develop its reporting on climate lobbying.
AP7 and the Church of England Pensions Board have been in discussions with National Grid regarding transparent reporting of the company’s policy dialogue and climate lobbying since the beginning of 2023.
The pension organisations were aiming to ensure that National Grid made a commitment to carry out a review and report on its activities.
Following the discussions, National Grid initially did not promise any reporting, and AP7 declared its intention to vote against the company chair, Paula Rosput Reynolds, and CEO, John Pettigrew.
National Grid has now announced that it has reversed its decision and will implement reporting.
“We welcome National Grid's commitment to regularly review its climate lobbying,” commented AP7 manager, active ownership, Emma Henningsson.
“We have therefore adjusted how we planned to vote at the company's general meeting on July 10 and will vote for both the chairman and CEO.
“Climate lobbying, directly or via trade associations, has over the years limited new legislation to achieve an orderly transition with reduced carbon dioxide emissions.
“It is therefore important that companies have clear corporate governance with an overview of their climate-related lobbying work and the opportunity to identify and act on any mismatches between their own climate goals and trade associations' advocacy work.”
Earlier this year, AP7 updated its voting policy to put increased focus on companies with large emissions that so not show ‘sufficient’ ambitions to contribute to addressing climate change.
This includes companies that, despite ownership control from investors, have not carried out an audit of their climate lobbying.
The criterion has resulted in AP7 voting against board members and agenda items at the general meetings of companies such as Bunge, Colgate-Palmolive and Saint-Gobain.
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