Skip to Content

Like What We Do?Donate R100 to help us keep doing it! Mailing List

Shareholder Resolutions

FirstRand Limited (AGM: 28 November 2019)

FirstRand’s Notice of Annual General Meeting, released on 8 October 2019, includes two climate risk shareholder resolutions proposed by the RAITH Foundation and Just Share. FirstRand is the second South African company to table climate risk-related shareholder resolutions. The first was Standard Bank in April 2019 (see below). Like the Standard Bank resolutions, the FirstRand resolutions call for improved disclosure on FirstRand’s exposure to climate-related risks, and for it to adopt and publicly disclose a policy on lending to fossil fuel-related projects. Both resolutions would require more than 50% of shareholder votes to pass.

Standard Bank “TCFD shareholder resolution” (AGM: 30 May 2019)

In April 2019, Standard Bank tabled a resolution submitted by two shareholders, the RAITH Foundation and Theo Botha, with support from Just Share. This was the first climate-related resolution to be tabled at a JSE listed company. The resolution was in two parts (10.1 and 10.2). The first required the bank to prepare a report on its exposure to climate risk in its lending, financing and investment activities, and the second part required the bank to adopt and publicly disclose its policy on lending to coal-fired power projects and coal mining operations. Both 10.1 and 10.2 needed more than 50% vote to pass.

View PDF or read about this in more detail.

Voting results

While the first part of the resolution did not pass, it received significant support with 38% of shareholders voting in favour, indicating strong shareholder demand for climate risk-related disclosure. The second part of the resolution was passed with 55% of shareholders voting in favour. Resolution 10.2 is therefore binding on the company.

Read about this in more detail.

Resolution 10.2

After engaging with the bank as to when it would publically disclose its policy on lending to coal-fired power projects and coal mining operations, as a date had not been stipulated in the resolution, Standard Bank announced the release of its Coal-Fired Power Finance Policy (Policy) on 31 July 2019. This partly discharges the obligation imposed on Standard Bank by the 55% of shareholders who voted in favour of Resolution 10.2. In its associated SENS announcement, Standard Bank stated that it is “in the process of developing a policy on lending to coal mining operations”.

In the interim, shareholders can assess for themselves whether Standard Bank’s position on lending to coal-fired power stations is sufficiently transparent and accessible, and whether it adequately addresses the severe climate and financial risks posed by the financing of new coal-fired power infrastructure. There are, however, several areas in which shareholders might consider the Policy to be disappointing.

Read about this in more detail.

Sasol Limited “2 degree scenario” shareholder resolution (2018)

In June 2018, Sasol informed the shareholders who proposed this resolution that the company would not be tabling the resolution at its 2018 AGM.

View PDF or read about this in more detail.