GHG resolutions get highest votes at GM, ExxonMobil

New York, 7 June: Shareholder activists are winning record levels of support for resolutions that would force US companies to take action on greenhouse gas (GHG) emissions.

Owners of General Motors and ExxonMobil shares provided the highest-ever vote tallies favouring action on climate change during recent annual meetings.

On Tuesday, General Motors stockholders representing 25.7% of the company's shares voted in favour of a resolution asking the board of directors to adopt quantitative goals for reducing greenhouse gases. They sought a report on GM plans by 30 September.

While GM has cut GHGs in manufacturing, "automobile companies are facing increasing consumer and regulatory pressure to reduce GHG emissions from the use of their vehicles," warned the resolution, saying GM lags behind European and Japanese peers.

This was the highest vote that GM shareholders have delivered on a GHG resolution, said Miranda Anderson, senior consultant for Ceres, a Boston-based environmental and investor organisation. Since 1998, GM resolutions have gained 3-7% approval, and those sought only disclosure, not goals, she noted.

"If a resolution receives a quarter of shareholder votes, that's enough to make management stop and think about what steps it needs to take," she said.

Anderson credited proponents for making "a strong business case" about risk, and for gaining support of two major proxy advisory firms – Institutional Shareholder Services (ISS) and Proxy Governance – who advised 'mainstream' clients to back the resolution, not just socially responsible investors.

GM did not respond to a request for comment by press time.

On 30 May, ExxonMobil stockholders backed a resolution by 31% of shares, asking the board to set quantitative GHG goals in operations and products. Supporters represented $121 billion of shares, and included several state pension funds, said Ceres spokesman Peyton Fleming. The proponents gained support of proxy advisory firms ISS and Glass, Lewis & Co.

But investors only voted 7% of shares to block re-appointment of board member Michael Boskin, who chairs ExxonMobil's public issues committee. His opponents say Boskin has refused to meet with shareholders on climate change five times.

ExxonMobil spokesman Gantt Walton said the Board Affairs Committee will review the vote "to consider what, if any, further actions are appropriate".