What creates a sense of urgency leading to collaborative and positive action in a fast-moving world? A common threat, for a start - leading to a "common purpose."
It has been five years (think of it as half a decade) since the U.S. Securities & Exchange Commission (SEC) published guidance in 2010 stating that publicly listed companies were required to disclose "the impact that business or legal developments related to climate change may have" on their business.
Recently, Europe-based energy companies have been demonstrating a new pace of shareholder engagement on these issues.
"BP, Shell and Statoil shareholder resolutions are setting a new global standard for climate risk transparency" says Kieran Quinn, chair of the Local Authority Pension Fund Forum (LAPFF), a group of 64 U.K. public pension funds with combined assets of £160bn ($251.6bn).
In California later this month one of the world's largest integrated energy companies, Chevron (NYSE:CVX) has an opportunity to set out a clear strategic direction for the business when it comes to climate risk management.
Despite its legal challenge, there are two key climate based resolutions sponsored by institutional investors going before its Annual General Meeting (AGM) in California later this month, on May 27.
Resolution 7 requests the Chevron board adopt a dividend policy increasing the amount authorised for capital distribution to shareholders in light of the growing potential for "stranded assets" and decreasing profitability associated with capital expenditures on high cost, unconventional projects.
It is being sponsored by Arjuna Capital and As You Sow, both investor-related businesses looking at the longer term.
Resolution 8 requests the board adopt long-term, quantitative, company-wide targets for reducing greenhouse gas emissions in products and operations that take into consideration the global commitment to limit warming to 2 degrees Celsius. It also asks the company to issue a report by November 30 on its plans to achieve these targets. It is being sponsored by the Tri-State Coalition and the ICCR.
LAPFF is advocating a Yes Vote on both these resolutions at the Chevron AGM.
There are so many things for the Chevron board to consider - here are a few of them:
Pope Francis has endorsed a Catholic petition calling for bold climate action after meeting with the newly created Global Catholic Climate Movement (GCCM) on Wednesday. The Pope’s move is yet another sign that he intends to lead Catholics into an active response to climate change.
It might be worth noting how many Catholics there are in California, where Chevron is headquartered.
Pope Francis is informed about the Catholic Climate Petition by GCCM representatives (Tomás Insua... [+]
“The support of Pope Francis to the petition is very important as climate change is a great and urgent moral issue,” says Allen Ottaro, director of CYNESA based in Kenya and co-founder of GCCM.
“Climate change hits the poorest first and hardest, and will leave an unnecessarily dire legacy for future generations. We Catholics need to step up against climate change and raise a strong voice asking political leaders to take action urgently. I encourage all to sign the petition on our website' adds Mr Ottaro.
Energy companies need to think quick and fast to survive. This week Shell has faced protests in Seattle in the U.S. in the battle over Arctic oil drilling.
Where these companies are headquartered and listed may soon make no difference to how much protest they face.
This is a global social movement that brings shareholders and religious leaders together in a common cause: a greater say in dictating strategic direction for the energy business, for the sake of all.
There are, of course, big differences between financial services firms and energy companies. But when it comes to a matter of trust, the latter may do well to consider the fate of the banks before these boardrooms make critical decisions on transparency in the future.
