Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the potential merits of businesses using company AGMs to consult with wider stakeholders beyond shareholders, to encourage greater stewardship and adoption of transition policies towards net-zero.

Since 2019 we have required all large companies to report annually on how their directors have had regard in their decision-making to the interests of employees, customers, suppliers, the environment and other matters. Companies are free to invite stakeholders to AGMs as a way to understand and consider stakeholder interests.

The UK Corporate Governance Code further provides that premium listed companies should ensure effective engagement with, and encourage participation from, both shareholders and stakeholders.

The Government's ‘Roadmap to Sustainable Investing’, published in October, set out how we will enable and expect business to address the challenge of climate change, including by disclosing climate change transition plans. (https://www.gov.uk/government/publications/greening-finance-a-roadmap-to-sustainable-investing). From April 2022, large public interest entities will be required to report in line with the recommendations of the Taskforce on Climate-Related Financial Disclosures.