The Investor Forum has called on the Government to introduce a mandatory non-binding shareholder ‘say on climate’ votes to drive “real-world impact” and a powerful investor signal on the effectiveness of any mandated climate disclosures.

The influential group state that such an approach would enable the investment community to take a leadership position in helping ensure that UK companies commit to advancing the UK’s net-zero commitments.

Andy Griffiths, executive director of the Investor Forum, said: “In 2020, we saw tangible evidence of the value of stewardship and the positive contribution that engagement can make. However, we believe that the important need for engagement is still not fully recognised; we very much hope that the FRC Stewardship Code reports will generate a wider discussion on the value of engagement in delivering effective stewardship.”

The Investor Forum was established in 2014 to help investors work collectively to escalate material issues with the boards of UK-listed companies. Currently there are 52 members that have £695bn invested in UK equities, representing 33 per cent of the FTSE-All Share market capitalisation.

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