Engaging for change

By engaging with companies, the Climate Advocacy Fund aims to improve corporate behaviour, financial performance and sustainability.

Advocacy process

Methodical approach

The Climate Advocacy Fund has a team of researchers who identify and monitor sustainability issues relevant to its investments.

The Climate Advocacy Fund collaborates with The Climate Institute to identify potential target companies and to draft the resolutions. The Climate Institute also assists with the technical elements of climate change issues.

The Climate Advocacy Fund also works with the US Interfaith Center for Corporate Responsibility (ICCR), who

  • undertakes research into environmental, social and governance issues relevant to corporate responsibility
  • assists its members with the shareholder resolution process.

Themes and issues raised

Climate issues will be the primary initial focus of the Fund, though in time a range of related social and environmental issues will also be addressed. Such issues are outlined in the following principles, which guide all the actions of the Fund:

The Fund will actively use its shareholdings to encourage corporate actions which result in:

  • supporting people
    • worker ownership and participation
    • locally-based ventures
    • human happiness, dignity and education
    • alleviating of poverty
  • supporting quality
    • high quality products and services
    • appropriate technological systems
  • supporting the environment
    • reducing pollution and efficient use of human waste
    • sustainable land use and building practices
    • preserving endangered eco-systems
    • animal welfare

The Fund will actively use its shareholdings to discourage corporate actions which result in:

  • damaging the environment
    • pollution
    • destroying or wasting resources
  • causing harm
    • products or services that harm humans, animals and the environment
    • militarism and armaments
  • disadvantaging people
    • misleading or deceitful marketing of products or services
    • producing and advertising unwanted products or services
    • encouraging financial over-commitment
    • exploiting with low wages or poor working conditions
    • discriminatory employment or marketing practices
    • inhibiting human rights
    • acquiring land or commodities for speculative gain

Approaches to engagement

Letters to senior management

One example is to request management of various companies adopt sustainable reporting frameworks as set out by the Carbon Disclosure Project (CDP) and the Global Reporting Initiative (GRI). This process of direct engagement can help raise the priority of the issues within the company, as well as raise internal awareness on stakeholder views and concerns.

Resolutions at shareholder meetings

Another example is the generation of resolutions which recommend a company initiate or cease certain activities (for example, to cease operations in oppressive regimes). Resolutions can have an impact whether or not they are passed, as this formal process brings to attention specific issues to other shareholders. This has the potential to build a broader shareholder support on these issues, as well as highlight areas of risk for the company.