Shareholders yesterday morning voted at the AGM of Norwegian fertiliser giant Yara International on a resolution requesting the company to set comprehensive, science-based scope 3 emissions reduction targets by the time of its next AGM in 2025. The result signals an increasing focus among major investors on the climate impacts of the fertiliser industry.

• An estimated 17% of non-state votesi were cast FOR the resolution, with 8% abstainingii.

• 25% of non-state votes did not support the board’s recommendation to vote against the proposaliii.

• 8% of total votes were cast for the resolution, with 3% abstaining

• The resolution was filed by ShareAction, Cardano, PGGM, the Ethos Foundation, and Greater Manchester Pension Fund.

Commenting on the outcome of the vote to set emissions reduction targets across the company’s entire value chain, Catherine Howarth OBE, Chief Executive, ShareAction said,

‘Today’s resolution vote was a key step in the journey of addressing the massive climate impacts of the nitrogen fertiliser industry. Although the production and use of nitrogen fertilisers generates 5% of global greenhouse gas emissions annually, fertiliser producers have received only minimal scrutiny to date for their contribution to climate change. The urgency of acting on fertiliser emissions has today been acknowledged by shareholders in Yara who voted for the company to set comprehensive scope 3 targets.

‘This is the critical decade for climate action. By delaying the setting of targets, Yara’s board and management team are failing in their responsibility not only to society at large but to the company’s shareholder base. Material risks lie ahead for Yara if the company does not shift at a greater pace from the use of fossil fuels and promote more efficient use of nitrogen fertilisers in global agriculture.’