Investors file 110 resolutions in 2013 proxy season
Climate change, water-related risks and other environmental issues drew more shareholder attention than ever in the 2013 US proxy season. What’s more, companies met their challenges with affirmative responses in a greater number of cases.
Shareholders filed a record 110 resolutions related to sustainability issues with 94 companies in the 2013 proxy season, and withdrew 40 of the filings after the companies agreed to take action on the specific demands, according to data compiled by Ceres, the non-profit organization that helped co-ordinate the investor filings. Almost 40 more resolutions came to a vote, with ‘yes’ votes ranging from 3.1 percent to 67 percent, while the rest were omitted or were not voted for technical reasons.
‘Investors are ever more mindful of escalating environmental and social risks and want answers on how companies are dealing with them,’ says Mindy Lubber, president of Ceres, in a press release. ‘This year’s proxy results show strong progress on wide-ranging sustainability challenges such as water availability risks, supply chain vulnerabilities and greenhouse gas emissions.’
Among climate change agreements reached, Starbucks, Dunkin’ Brands and grocery store chain Kroger agreed to help protect rainforests and reduce greenhouse gas emissions by using only certified sustainable palm oil, while medical equipment manufacturer Stryker agreed to set goals for greenhouse gas emission reduction.
Supply chain sustainability was another key issue in shareholder filings and agreements with companies after a series of factory disasters in Bangladesh highlighted the topic. Retailers Gap, Nike and Target as well as technology companies EMC and Texas Instruments agreed to work with key suppliers to encourage them to issue sustainability reports.
Companies including Ralph Lauren, Starwood Hotels & Resorts, Cameron International, Cousins Properties, LifePoint Hospitals and others also agreed to issue sustainability reports after filings by a series of pension funds and other shareholders. Sixty-seven percent of shareholders of fertilizer manufacturer CF Industries, which suffered an explosion that killed 15 people in Texas in April, voted in favor of a request for a sustainability report filed by the Presbyterian Church (USA).
Among the most prolific filers were CalSTRS, the Office of the New York State Comptroller and the Office of the New York City Comptroller, and investors such as Calvert Investments, Trillium Asset Management and Walden Asset Management, Ceres says.
