Incitec Pivot: A vote against management to signal need for change

Mar 2024

Objective

Encourage the company to pursue a more ambitious transition plan.

Objective

Encourage the company to pursue a more ambitious transition plan.

Engagement type One-to-one

Our engagement

During the 2022 AGM, the company put up for a vote a resolution to seek investors’ support for its 2022 Climate Progress Report. We reviewed the report and found that the company had made some progress on climate reporting, but concluded that Incitec Pivot’s plan still had critical omissions to manage its climate risks. These omissions included:

incorporating scope 3 emissions in its net zero pledge and
aligning its strategy with a less-than-two-degree world.

The outcome

Fidelity decided that abstention was the most appropriate approach to IPL’s ‘progress on climate change transition’ resolution as part of their FY22 AGM. Given the nuance of the vote, we sent a written note with our feedback, to encourage progress in the coming years.