Investors are looking more at ‘long-term performance,’ says Ceres president
Investors have scored a large number of successes over sustainability issues during the 2012 proxy season in the US, reports a new study.
Lobby group Ceres says, out of 110 shareholder resolutions it has tracked, 44 concluded with companies making commitments to improve corporate sustainability.
Investor interest in sustainable performance has increased year on year, according to analysis by Ernst & Young, which predicts 45 percent of shareholder proposals in 2012 will focus on environmental and social issues.
‘Each year, more investors ask corporations to look beyond simple short-term profits to sustainable, long-term performance,’ comments Mindy Lubber, president of Ceres, in the report.
Palm oil protests
Areas of concern during 2012 include palm oil, reports Ceres, which is used in an estimated 50 percent of supermarket products.
Campaigners say the production of palm oil has led to deforestation, the loss of natural habitats for endangered species and an increase in greenhouse gas emissions.
Successful resolutions in this field came from Smucker’s and Colgate shareholders, leading to both companies committing to source 100 percent certified sustainable palm oil.
On top of this, 37 percent of shareholders in KFC, Pizza Hut and Taco Bell’s parent company, Yum! Brands, voted yes on Trillium Asset Management’s resolution for all palm oil sourced to be certified sustainable.
Fracking focus
Shareholders also showed particular interest in the area of hydraulic fracturing, notes Ceres.
The procedure, which is used in natural gas and oil extraction, has been the focus of crack-downs and the subject of bans and regulation, due to the risk it poses to water supplies.
Investors secured agreements to improve disclosure of the risks posed by fracking at Anadarko, EOG Resources, Chesapeake Energy, Penn Virginia, Range Resources, Noble Energy and Stone Energy.
Filing a total of 10 resolutions, investors averaged a 30 percent vote at companies who refused to negotiate withdrawals before the annual meetings.
Read the full report from Ceres.
