ESG Proxy Vote Alerts

Chemical Footprint, Carbon Offsets, Climate Greenwashing, Net Zero Asset Managers

As proxy season winds down, we want to highlight some important resolutions that were filed but never went to a vote.  We also take a look at asset managers who are committed to align proxy voting with company climate policies.

Chemical Footprint

For nearly 20 years, the Investor Environmental Health Network (IEHN) has been working to reduce the material impacts of toxic chemicals in products and supply chains. This year, proponents filed four resolutions seeking reports on reducing chemical footprints at Bed Bath &  Beyond, Burlington Stores, Dollar General and Five Below, but withdrew when each agreed to take action to address and report on chemical risks.

- Learn more: Reducing Chemical Footprint Lessens Legal and Regulatory Risk

 

Carbon Offsets

Many companies are using carbon offsets to show they will achieve net zero greenhouse gas emissions goals, but actual emissions reductions must occur if overall carbon goals are to occur. This year saw the first shareholder resolution to directly address this challenge, asking Williams-Sonoma to disclose its “use of carbon credits, including type of credits, verification, timing, and whether carbon credits are intended to substitute for emissions reductions beyond current goals.” As You Sow withdrew after the company agreed to provide more information.

- Learn more: Carbon Offsets Are Not Emissions Reductions

Climate Greenwashing

A resolution asking IDACORP (Idaho Power) to report on how its GHG targets align with the Paris climate goals was omitted. The company prevailed in its SEC challenge after the company posted its GHG goals online.  Yet the proponents contend close scrutiny of the report shows the company will fall far short of its claims and amounts to greenwashing—a subject likely to persist at many companies going forward. 

- Learn more: Climate Targets - The Latest Trend in Corporate Greenwashing

Net Zero Asset Managers Initiative

Members of the Net Zero Asset Managers (NZAM) Initiative commit to transition their investment portfolios to align with the goal of net zero emissions by 2050. In just 18 months NZAM has grown from 30 asset managers to nearly 280 firms representing over $60 trillion in assets under management.

- Learn more: Net Zero Asset Managers Initiative: Transparency and Accountability on Climate