Legal Efforts to Hobble Shareholder Rights

We are in an anti-democratic moment. People with money and power refuse to heed those who have neither. This is true in Washington. But, it is also true in statehouses where state officials try to intimidate into non-action and silence investors who believe sustainability is key to long-term investment success.  

There is nothing “free market” about this effort. Instead, it is an attempt to bolster the fossil fuel industry at the expense of shareholder prerogatives. 

Read more

2025 Update on SEC Rules for Shareholder Proposals

In order to help companies and investors determine whether a shareholder proposal qualifies to appear on the proxy statement under SEC Rule 14a-8, the SEC has developed a process to allow companies to inquire in advance whether a proposal must be included. The “no action” process is an informal review process through which the SEC staff advises companies and their investors on whether the SEC staff would recommend enforcement action if a company fails to include a submitted shareholder proposal on its annual proxy statement. 

Read more

Nature is Critical to Business: Urgent Need to Address Biodiversity Risk

Global biodiversity is deteriorating faster than at any time in human history, largely due to human activity. Such massive biodiversity loss poses serious economic and financial risk as more than half the world’s economy is moderately or highly dependent on nature. To reverse this trend, companies must start by meaningfully assessing, disclosing, and addressing their nature-related impacts, dependencies, risks, and opportunities.

Read more

The Net-Zero Banking Alliance, Climate Finance, and Banks' Accountability to Shareholders

The Net-Zero Banking Alliance (NZBA) formed in the spring of 2021 to great fanfare. Banks in the alliance made a voluntary commitment, signed by their CEO, to set and publish targets that are aligned with pathways for net zero by 2050, reduce emissions associated with their material financing activities in carbon-intensive sectors, and develop transition plans to achieve the targets. 

Read more

The Future of Freight: Decarbonization of Heavy-Duty Trucking is Accelerating

The transportation sector is the largest source of U.S. greenhouse gas (GHG) emissions. Medium- and heavy-duty vehicles are the fastest-growing source of transport emissions, driven by the expansion of e-commerce and consumer demand for fast delivery. Trucks’ disproportionate impact on emissions and community health underscores the urgency of adopting cleaner, more efficient technologies and practices.  

Read more

Amazon Lags Behind Peers in Scope 3 Greenhouse Gas Disclosures

Scope 3, or value-chain emissions, account for an average of 75% of a company’s total greenhouse gas (GHG) emissions, rising to over 90% in the retail sector. While challenges persist in assessing Scope 3 emissions – including data availability and quality concerns – assessing these emissions is critical to any credible climate strategy. Only by acting to assess value-chain emissions will data quality improve. 

Read more

Avocado Industry Helps Reduce Deforestation in Mexico

In complex situations where environmental and human rights issues are not addressed by local regulation, shareholders can drive corporations to promote significant change by demanding more from their suppliers. This is evident in Mexico's avocado industry, where shareholder engagement, political action, and NGO efforts are tackling illegal deforestation and its impacts.

Read more

Climate Transition Planning Will Improve Business Transparency and Resilience

The year 2024 saw record-breaking global temperatures and extreme weather disasters worldwide, causing loss of life, homes, and hundreds of billions in damages. In light of this devastating year, investors are looking to the 2025 proxy season as an opportunity to encourage corporations to do more to address the financial impacts of climate change by reducing planet-warming greenhouse gas emissions and investing in the clean energy economy.

Read more

Health and Safety Audits Needed for Fast Food Industry

In recent years, the food service industry has been rife with workplace health safety issues. Food service workers have been attacked, stabbed, shot, and killed by customers in the restaurants where they work. According to one study, between 2017 and 2020, at least 77,000 violent or threatening incidents took place at California fast-food restaurants. Recent data indicate that the cost of workplace violence could be as much as $56 billion annually – and that’s likely an undercount. However, workplace health and safety issues are not limited to customer violence. Workers have also been made to work under unsafe and unsanitary conditions, such as restaurants with high kitchen temperatures and restaurants infested with vermin.  

Read more

New SEC Rules Undermine Lobbying Disclosure Proposals

Since 2011, investors have filed over 600 shareholder proposals asking for lobbying disclosure reports that include federal and state lobbying amounts, payments to trade associations and social welfare groups used for lobbying, and payments to tax-exempt organizations that write and endorse model legislation. The proposal has been voted on at nearly 400 companies, produced more than 125 settlements for improved disclosure, and notched 13 majorities, including Exxon and McDonald’s. 

Read more

Big Tech Lobbies Against Child Safety

The exponential growth of online child sexual exploitation, cyberbullying, and teen mental health issues is directly linked to the growth of social media. These negative impacts on children and teens are primarily due to algorithms designed to send streams of unsolicited materials that entice children into online engagements with strangers, exploit their personal data, and keep them online for longer periods of time at the same time that age verification features remain insufficient, enabling adults and children to pretend to be different ages – increasing the rates of child sexual abuse.

Read more

A Human Rights Due Diligence Framework for Artificial Intelligence

The widespread adoption of artificial intelligence (AI) by companies has the potential to unleash broad-based economic prosperity by enhancing employee productivity. But, it also carries risks to workers’ rights as AI algorithms increasingly set productivity quotas, make human resource decisions, and direct workers on how to perform their jobs. For example, the use of AI in human resources decisions can result in unlawful employment discrimination. 

Read more