The Canada Pension Plan Investment Board is warning corporate board directors that any companies failing to consider climate risks, adopting multiple-year term lengths or lacking in female representation won’t receive its support during shareholder votes, according to a new report.

“How we select investments and hold management accountable to manage these factors can enhance or erode the long-term value of the CPP fund,” wrote John Graham, president and chief executive officer of the CPPIB, in a new report covering its approach to sustainable investing and its proxy voting policies.

During the period covered by the report, the year ending June 30, 2022, the investment organization voted on more than 41,000 issues raised at shareholder meetings. In about 4,200 cases, these votes were cast against the wishes of corporate management.

Read: Sustainability frameworks receive approval in SHARE’s proxy voting guidelines

It also voted for the removal of 65 corporate directors at 35 companies because organizations failed to give due consideration to physical and transition-related risks of climate change. “Through direct engagement, we helped secure material commitments and improvements on climate-related disclosures and practices at 35 companies and voted for climate-related shareholder proposals that sought deeper disclosures on topics such as operational emissions management, asset portfolio resilience and public policy,” wrote the CPPIB.

It also implemented new proxy voting rules related to classified boards, structured to provide directors with terms longer than one year. The policy, which was recommended by its sustainable investing group, led the organization to vote against the re-election of another 555 directors at 200 organizations.

The CPPIB also extended an existing policy to vote against board directors with fewer than 30 per cent female representation on boards to apply to two more countries: New Zealand and South Africa. Previously, the rule was only applied at companies in Australia, Europe and North America.

“We expect to apply a rounded 30 per cent threshold to more countries and markets in the next few years, including in emerging markets.”

Read: CPPIB updates proxy voting guidelines on diversity, climate issues