Ada Recinos, Deputy Press Secretary, Federal Communications, ada.recinos@sierraclub.org (Pacific Time)
NEW YORK – Today, two major U.S. banks, Bank of America and Goldman Sachs, held their Annual General Meetings (AGMs), where shareholders voted on several investor proposals calling for stronger transparency on energy financing and other climate-related issues. In recent years, financial institutions and polluting companies have faced growing pressure from shareholders to increase climate-related disclosures and align their business strategies with pathways to reach global climate goals.
The AGMS for other major US banks are still ahead: Citigroup and Wells Fargo on April 30, JPMorgan Chase on May 21, and Morgan Stanley on May 23.
The resolutions voted on at Bank of America and Goldman Sachs included:
- Clean Energy Financing Ratio - Resolution filed by the New York City Comptroller and pension funds requesting annual disclosure of the bank’s clean energy supply financing ratio:
- Bank of America preliminary voting result: 26% support
- Goldman Sachs preliminary voting result: 29% support
- Environmental Justice Assessment - Resolution filed by the Sierra Club Foundation requesting an assessment of environmental justice impacts of the bank’s energy and power sector financing:
- Goldman Sachs preliminary voting result: 10% support
- Climate Lobbying Alignment - Resolution filed by Trillium Asset Management requesting a report on the alignment of the bank’s lobbying activities with its climate goals:
- Bank of America preliminary voting result: 27% support
- Lobbying Expenditures Disclosure - Resolution filed by John Chevedden requesting annual reporting of lobbying policy and expenditures, including on climate-related policy:
- Goldman Sachs preliminary voting result: 39% support
By contrast, a resolution at Goldman Sachs filed by the National Center for Public Policy Research opposing climate action and asking the bank to ignore the findings of the International Energy Agency received only 1% support.
In response to the news, Ben Cushing, Director for the Sierra Club’s Fossil-Free Finance campaign, issued the following statement:
“Investors have sent a strong signal to big banks demanding greater transparency on the implementation of their climate commitments, including critical information on how banks are prioritizing financing for renewable energy and aligning lobbying activities with climate goals.
However, it is disappointing to see far too many investors fail to demand the same level of transparency when it comes to evaluating the impacts and risks of bank financing for polluting activities that harm marginalized communities.
Shareholder pressure on banks’ climate plans is getting stronger, and investors — including some of the country’s largest pension funds — are showing they will continue to call for robust disclosures and climate-alignment from banks. We expect this pressure to continue through the rest of this year’s AGMs and far beyond.”
Background:
In the lead up to this AGM season, Citigroup, JPMorgan Chase, and Royal Bank of Canada agreed to disclose their relative levels of financing for low-carbon energy versus fossil fuels — also known as an energy supply financing ratio — in response to shareholder resolutions filed by the New York City Comptroller Brad Lander and three New York City pension systems. The Comptroller has emphasized the need for banks to increase financing for low-carbon energy and decrease financing for fossil fuel expansion in order to align with the goals of the Paris Agreement. Bank of America and Goldman Sachs did not make similar agreements, nor did Morgan Stanley, where the same resolution will go to a vote at the bank’s AGM next month.
Last year, Goldman Sachs, Bank of America, and other major US banks faced several climate-related shareholder proposals calling for progress on implementing their climate and human rights commitments. The 2023 resolutions included a proposal filed by Trillium Asset Management (Bank of America, 7% support) and the Sierra Club Foundation (Goldman Sachs, 7% support) requesting the adoption of a time-bound phase out of financing for new fossil fuel exploration and development.
According to the International Energy Agency, in order to meet the goals set out in the Paris Agreement — net-zero emissions by 2050 and limit global temperature rise to 1.5C — development of new fossil fuel projects and associated infrastructure must end. Accordingly, financial institutions must stop financing and facilitating further fossil fuel expansion.
About the Sierra Club
The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.