Activist investor Christopher Hohn’s $30 billion fund, TCI Fund Management announced that it has submitted proposals to Canada’s largest railway companies, Canadian National Railway (CN) and Canadian Pacific Railway, requesting that the companies present climate action plans at their upcoming shareholder meetings. In both submissions, the fund asks that the companies’ plans detail their greenhouse gas (GHG) emission levels as well as their strategies to reduce emissions in the future.
TCI holds significant stakes in both companies. According to recent regulatory filings, the fund holds over 8% of CP shares with a stake worth $3.7 billion, and nearly 3% of CN’s shares, worth $2.3 billion.
Regarding CN, Chris Hohn, TCI Founder and Portfolio Manager, said:
“While TCI recognises the positive steps CN has taken to improve its emissions intensity, supporting this resolution would reinforce its leadership and dedication to ESG, and set an example for the rest of corporate Canada to follow.”
According to TCI, the fund manager engaged in discussions with CP earlier this year pursuant to which CP agreed to work with TCI on a climate-related resolution that could be put to shareholders at the 2021 AGM. Earlier this year, CP announced new sustainability commitments to pursue efforts to mitigate the impacts of climate change, and to set science-based targets for its GHG emissions reduction goals.
“TCI remains committed to driving the reduction of carbon emissions at the corporate level, and establishing a climate action plan that can be voted on by shareholders is a key step forward in accomplishing that goal. We look forward to maintaining an active dialogue with Canadian Pacific on this matter, as well as engaging with other Corporations, Boards of Directors, Investors and Asset Owners more broadly to bring about meaningful change that will help accelerate a transition to net zero.”