A billionaire British hedge-fund manager’s campaign to make large public companies set near-term targets for carbon-emission cuts is encountering challenges from U.S. corporations and money managers.
More than a dozen companies in Europe, Canada and Australia have signed onto Chris Hohn’s “Say on Climate” initiative, according to data from Institutional Shareholder Services Inc. The drive has also aimed to make companies’ emission targets subject to annual shareholder votes. But in recent weeks, U.S. cable provider Charter Communications Inc. and railroad operator Union Pacific Corp. decided to oppose Mr. Hohn’s proposed shareholder resolutions.
Some large U.S. fund managers also took issue with aspects of the proposals. State Street Corp. , one of the biggest money managers in the country, doesn’t think companies with strong environmental track records should have their carbon-emission plans put to shareholder votes, said Ben Colton, the Boston-based firm’s global co-head of asset stewardship.
Going forward, Say on Climate will shift its approach in the U.S., only recommending votes to disapprove of a company’s emission plan if a shareholder finds it deficient, said Mr. Hohn, who has been holding talks with U.S. investor groups on the matter. The campaign will continue seeking mandatory emissions disclosure and plans in all cases.
“There’s widespread investor support for annual disclosure of emissions and a plan to manage them,” Mr. Hohn said. The disagreement over the shareholder vote prompted the new approach for U.S. companies, he said.
