A record number of investors have filed shareholder resolutions on environmental and social issues as part of the Proxy Preview 2013 report released today.
A record number of investors have filed shareholder resolutions on environmental and social issues as part of the Proxy Preview 2013 report released today.
The report, produced by advocacy group As You Sow, the Sustainable Investments Institute and Proxy Impact, provides a overview of 365 social and environmental shareholder resolutions. It also gives insights from shareholder experts and resources for how investors with a social mission can vote with their values while keeping an eye on the bottom line.
“Investors are urgently seeking transformation of corporate environmental, social, and governance policies,” said Andrew Behar, CEO of As You Sow. “It looks to be a year of growing intensity as leading companies are more open to working cooperatively with shareholder advocates, while laggard companies are creating polarization and reaction from investors.”
The analysis showed two out of five responding shareholders were most concerned with climate change, energy and their related risks, including questions about corporate sustainability strategies and transparency. A total of 41 resolutions focused specifically on climate change, with a common theme of disclosure.
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Seventeen resolutions called for coal, shale gas and nuclear power generators to disclose information about how they are dealing with environmental and community risks.
The report said the Securities and Exchange Commission reversed its former position and approved for investor consideration a resolution asking JPMorgan Chase and PNC Financial Group to report how they account for greenhouse gas emissions in their financing practices.
Investor social concerns included animal testing, corporate political activity, workplace diversity, health and human rights. A third of shareholders were most concerned with corporate political spending before and after elections.
During the 2012 proxy voting season, investors used shareholder resolutions to spur action on corporate sustainability challenges such as climate change, hydraulic fracturing and supply chain and water availability risks. A total of 44 proposals out of the 110 resolutions tracked by advocacy group Ceres resulted in U.S. companies committing to engage environmental and social risks in their supply chains and operations.
Last month, the Carbon Disclosure Project (CDP) announced investors representing a third of the world's invested capital are asking companies to report their carbon emissions and strategies through the CDP, further evidence of widespread investor interest in how companies are addressing climate-related risks.
Published Mar 7, 2013 11am EST / 8am PST / 4pm GMT / 5pm CET
Managing Director, Sustainability & Social Impact
Deutsche Bank
Mike Hower is a sustainability communicator and connector committed to helping purpose-driven businesses and people unlock their full potential for positive impact. As founder and principal consultant at Hower Impact, he works with companies to translate sustainability strategy into stories that inform, engage and inspire investors, customers, employees, regulators and other stakeholders in the service of social, environmental and business goals. Through his Impact Hired initiative, he works to connect and engage corporate sustainability professionals at all stages of their careers.
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