ESG Focus Areas
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Engagement Case: Contributing to GFL Environmental Climate Transition GFL Environmental is a major North American waste management provider whose operations – particularly landfill activi- ties – drive a sizeable carbon footprint of roughly 4 million tonnes of CO 2 e (about 71% of total emissions). While waste services contribute positively to environmental outcomes through recycling and resource recovery, methane emissions from landfills pose a significant climate challenge. At the same time, technologies such as landfill gas capture and renew- able natural gas (RNG) production present an opportunity to materially reduce emissions while generating additional revenue. Our engagement focused on encouraging GFL to adopt more ambitious and credible emissions reduction targets aligned with its operational potential and its projected growth in RNG. Initially, GFL’s 2030 target – a 15% reduction in Scope 1 and 2 emissions – lagged peers and appeared inconsistent with management’s own expectations for RNG’s value contribution. This mismatch suggested a need for clearer alignment between climate strategy and business fundamentals. Through multi level engagement – including dialogues with the CEO, sustainability leadership, NAM-led methane initia- tives, and Climate Engagement Canada – we highlighted this inconsistency. These discussions contributed to a strategic shift: GFL doubled its Scope 1 and 2 reduction target to 30% by 2030 and conducted independent verification of its align- ment with a 1.5°C pathway. Although the company opted for a hybrid methodology rather than pursuing SBTi validation, we continue to encourage full transparency on its approach to enhance credibility. Progress towards the new target is supported by an expanding pipeline of RNG projects, ongoing capital investment in landfill gas capture, and improved emissions measurement. Looking ahead, our engagement will focus on ensuring GFL clearly demonstrates how RNG deployment underpins its decarbonization trajectory and aligns its emissions pathway with a science based 1.5°C scenario.
Voting on Climate We leverage climate votes to influence corporate climate strat- egies, expecting boards to oversee and disclose climate risks due to their potential impact on company value. The Invest- ment Stewardship team, collaborating with Portfolio Managers, evaluates significant climate resolutions, particularly "Say on Climate" initiatives in high-impact sectors. In 2025, we voted on a total of 103 climate-related shareholder proposals where we have supported 70% of them. We have also voted against man- agement at several oil and gas majors, including opposing the re-election of directors at ExxonMobil, BP, Chevron, Shell and TotalEnergies. We also voted for shareholder resolutions that we found to be appropriately targeted and aligned with driving meaningful climate action. For example, we voted for a resolution at Shell requesting the company to disclose whether and how its demand forecast for LNG, LNG production and sales targets, and new capital expenditure in natural gas assets are consistent with its climate commitments.
At Equinor's AGM, we voted against a say-on-climate proposal from Equinor's board, which we found to be insufficiently ambitious. We supported a resolution calling on the board to assess whether Equinor's planned increase in oil and gas production – particularly in its international segment – is con- sistent with existing climate commitments. However, we also voted against several resolutions at Equinor's AGM which we deemed to be overly prescriptive and misaligned with business realities. We will continue to use our voting rights in this way going forward, carefully evaluating each resolution to ensure it is aligned with effective mitigation of climate risk and protection of long-term shareholder value.
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