How shareholder activism accelerates climate action with ShareAction, Ep #49

Late in 2022, I noticed a BBC News article stating that HSBC – one of the world’s largest banks – had committed to end funding for all new oil and gas drilling. The commitment alone was noteworthy, but what really caught my eye, as I was looking to understand what drove such a powerful commitment, was the mention of a small nonprofit group based in the UK called ShareAction. I learned that their investigative work, pressure, and collaboration with financial service firms and other companies are accelerating the climate transition. The secret to their sauce is what’s known as shareholder activism, and here to explain it today is Simon Rawson, ShareAction’s Director of Corporate Engagement & Deputy CEO. A former British diplomat, Simon helped build the social responsibility practice at McKinsey & Company. He brings real sophistication to his advocacy work, understanding the need for quality data and balancing pressure and collaboration. I learned a lot from this conversation and if you’re interested in understanding how the financial system can help accelerate climate action, I think you’ll enjoy it. Here we go.In today’s episode, we cover:[3:14] ShareAction, how it got started & the problem it's aiming to solve[4:57] Simon’s career switch & why his work today is important[6:41] The power of shareholder activism[8:48] The transformation of the financial system[10:56] ShareAction’s Voting Matters Report[14:10] Divergence in the US & Europe in relation to ESG backlash[16:22] The importance of the Net Zero Asset Managers Initiative & Climate Action 100+[18:19] The hyperpolarization of ESG & next steps[19:57] The HSBC commitment & ShareAction’s role[21:43] The balance between pushing aggressively & being collaborative[23:33] What’s involved in creating a shareholder resolution[26:00] Coalition building & keeping the pressure on[27:25] Climate action & investor returns[30:02] Focusing on the petrochemical industry [32:54] Other focus areas for ShareAction[34:44] What everyday people can do when it comes to shareholder activism[37:05] What the future will look like in 10-15 yearsResources MentionedShareActionShareAction’s Voting Matters ReportThe Net Zero Asset Managers InitiativeClimate Action 100+BBC News: HSBC to end funding for new oil and gas fieldsConnect with Simon RawsonConnect with Simon on LinkedInConnect with Jason RissmanOn LinkedInOn TwitterKeep up with Invested In ClimateSign up for our NewsletterLinkedInInstagramTwitterHave feedback or ideas for future episodes, events, or partnerships? Get in touch!