[ad_1]
Ontario Academics’ Pension Plan (OTPP), certainly one of Canada’s largest buyers, introduced the discharge of its 2024 Proxy Voting Pointers, with strengthened expectations for firm boards on local weather oversight.
One of many key modifications to OTPP’s proxy voting tips this 12 months contains the expectations for board audit committees, particularly associated to local weather change. In accordance with OTPP, audit committees are coming beneath rising scrutiny on local weather issues, with shareholder expectations for “firms to obviously talk and measure their local weather commitments.”
New expectations outlined within the tips embody setting local weather competency as a core requirement for audit committee members and for members to take steps to achieve local weather literacy the place gaps exist, and for administrators to guage the impression of local weather when reviewing budgets, efficiency and M&A exercise, in addition to for members to grasp environmental impression and associated reporting necessities for his or her firms.
The modifications add to OTPP’s prior climate-related tips, together with expectations for firms to report primarily based on the Worldwide Sustainability Requirements Board’s (ISSB) SASB requirements and the TCFD suggestions, disclosure of targets and metrics and efficiency on managing local weather danger, and the efficiency of credible situation evaluation so as to allow local weather danger oversight evaluation.
Anna Murray, Senior Managing Director and World Head of Sustainable Investing at OTPP, mentioned:
“This 12 months we’re emphasizing the position of the Audit Committee in managing local weather change dangers. We consider their oversight will play an more and more essential position in serving to firms navigate the challenges offered by local weather change.”
[ad_2]
Source link
