Investor climate group closes down, blaming “limits” of shareholder activism

Share: X (Twitter) Facebook LinkedIn WhatsApp Email Print In 2021, amidst a wave of corporate net-zero targets, a campaign group called Investors for Paris Compliance was set up in British Columbia, aiming to use investor pressure to hold Canadian companies to account on their climate promises. In the five years since, the group has notched up several wins: pressuring National Bank into providing $20 billion of finance to renewable energy, getting Royal Bank of Canada to improve its green finance labels and persuading 20-25% of investors to regularly back climate proposals at annual general meetings (AGMs) for shareholders. But last month, the group's then executive director Matt Price put out a statement saying it was shutting down. Despite some progress, Price explained, his organisation had concluded that "investor accountability has reached its limits". Companies and their investors often understand that climate change threatens the economic system, Price said. But, he added, they do not respond adequately because they are worried that, if they do, their competitors will not put in as much effort and could therefore gain a financial advantage. This "tragedy of the commons" situation cannot be fixed , Price said, but instead needs litigation, regulatory action and accountability mechanisms. "Some of our team will take those things on in new initiatives," he said. Log in here → Continue reading with a subscription Our goal is simple: to help you make sense of the policy decisions shaping the planet and what they mean for all of us. £40/quarter → Or £130/year — best value. ×Log in to your account Forgot your password? In 2021, amidst a wave of corporate net-zero targets, a campaign group called Investors for Paris Compliance was set up in British Columbia, aiming to use investor pressure to hold Canadian companies to account on their climate promises. In the five years since, the group has notched up several wins: pressuring National Bank into providing $20 billion of finance to renewable energy, getting Royal Bank of Canada to improve its green finance labels and persuading 20-25% of investors to regularly back climate proposals at annual general meetings (AGMs) for shareholders. But last month, the group's then executive director Matt Price put out a statement saying it was shutting down. Despite some progress, Price explained, his organisation had concluded that "investor accountability has reached its limits". Companies and their investors often understand that climate change threatens the economic system, Price said. But, he added, they do not respond adequately because they are worried that, if they do, their competitors will not put in as much effort and could therefore gain a financial advantage.