From Commitment to Implementation: An Analysis of Corporate Climate Actions from the 2021 Proxy Season

This report answers two essential questions: What happens after companies make commitments to a shareholder proposal? Do they follow through on what they promised with meaningful action?   

To answer those questions, this report analyzes  the implementation of 66 corporate climate commitments following resolutions filed in 2021. (Shareholders withdrew the resolutions in response to these commitments.)  

By focusing on 2021, the report’s analysis gives companies a reasonable amount of time—three years—to act on commitments, including setting science-based greenhouse gas reduction targets and adopting global no-deforestation policies. The report also evaluates the high level of responsiveness to 18 proposals that received majority votes during that same proxy season.  

Overall, the report shows that shareholder engagement on climate change continues to lead to actions that benefit investors, companies, and society. Shareholder proposals, along with constructive dialogue, result in a significant number of corporate commitments, and our research reveals that most of those commitments are implemented. 

Key findings from Ceres’ analysis include: 

• 73% of corporate commitments made in response to the withdrawal of shareholder resolutions were fully or mostly implemented, highlighting a substantial level of follow-through by companies on their promises to address climate risks and opportunities. 

• 94% of 18 majority votes were implemented in some capacity, with 61% fully or mostly implemented. 

• 84% of implemented corporate commitments and 77% implemented majority votes were assessed as High or Medium quality by investors, indicating a strong level of satisfaction with the actions taken by companies. 

Examples of companies taking action are spotlighted in this report, from oil refiner Phillips 66 to food giant Kraft Heinz, underscoring the underreported story of investors and companies reaching agreements on solutions to help ensure long-term shareholder value. This new analysis also reaffirms the findings of a previous Ceres report on the 2014 and 2015 proxy seasons, which showed similar positive results of companies implementing a high percentage of commitments they made to shareholders. 

Ceres’ analysis is primarily derived from assessments conducted by the shareholders who filed proposals, providing first-hand insights from investors ranging from pension funds to asset managers of all sizes, to faith-based institutional investors.