Local Government Pension Scheme (LGPS) pool Border to Coast has published its proxy voting report, detailing how it voted on behalf of its partner funds during the 2023 annual general meeting (AGM) season.

Having updated its responsible investment voting guidelines in 2023, Border to Coast said it exercised its voting rights to express concerns about firms’ approaches to managing the risks of climate change.

During the 2023 AGM season, Border to Coast voted in favour of 81 per cent of environmental shareholder resolutions and of 90 per cent of social shareholder proposals.

The majority of the shareholder climate resolutions Border to Coast opposed in 2023 were deemed “overly prescriptive”.

Its engagement escalation led to the pool voting against the re-election of the chair at 95 per cent of oil and gas companies.

Border to Coast also voted against 71 per cent of the ‘say on climate’ management resolutions.

In total, Border to Coast voted on 10,167 resolutions at 690 annual meetings, supporting 88 per cent of management resolutions. 

Commenting on the report’s publication, Border to Coast head of responsible investment, Jane Firth, said: “Investors risk giving up value by failing to ask portfolio businesses how they are managing risk. As an active steward of our partner funds’ capital, we have a responsibility to clearly express our concerns about the lack of transition progress.

“Given we consider climate change a critical risk to the long-term success of some portfolio companies, we are using perhaps the most influential means at our disposal - voting - to support credible proposals that are aligned with achieving net zero.”

Border to Coast stewardship manager, Colin Baines, added: “Investors need to be authentic in how they put commitments to net zero and company engagement into practice, resisting attempts to politicise ESG and climate risk management.

“Voting across all our funds in alignment with our responsible investment policies and voting guidelines ensures a clarity of approach for our partner funds. However, many asset owners do not have this assurance and misalignment between asset owners and some asset managers is becoming evident.

“Not only are some investors exposing themselves to accusations of greenwashing by voting counter to their climate commitments, they are also hindering the potential of ESG stewardship to secure quality company transition plans, reduce climate risk, and add long-term value.”

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