ESG Proxy Vote Alerts
The Future of Agriculture
What is “Scope 3” and Why is it Important
Below are key votes for the week of May 2-6.
Shareholder resolutions play an important role in educating management, investors and the larger financial community about upcoming risk and opportunities. Next week’s resolutions address issues that may be new to many shareholders, but which will help identify both problems and solutions for a sustainable future.
Regenerative Agriculture
Chemicals, and pesticides in particular, are increasingly linked to health problems such as cancers, neurological difficulties and endocrine (hormone) disruption. Shareholders have long been trying to reduce pesticide use in agriculture, and now some food manufacturers also see this as a risk that can be turned into an opportunity.
‘Regenerative agriculture’ approaches industrial agriculture through a conservation lens that focuses on restoring soil health, increasing biodiversity and making agriculture more resilient to climate change. Companies see this as a way to protect the food chain and reduce health impacts on farmworkers and consumers. A resolution therefore asks Archer Daniels-Midland how it is “measuring the use in its agriculture supply chains of pesticides that cause harm to human health and the environment.”
- Vote due date: Archer Daniels Midland, 5/4
- Learn more: Shareholders Help Big-AG Build a Resilient Supply Chain
Adopt GHG Goals for Scope 3 Emissions
Shareholders are asking many companies how they will reduce their greenhouse gas (GHG) emissions and the most challenging to measure are Scope 3 emissions. Scope 1 emissions come from operations (like smokestacks). Scope 2 are from energy purchases (from a utility). Scope 3 is everything else—indirect emissions from purchased goods, waste disposal, business travel and investments.
For many companies, most of their GHG emissions are Scope 3. Measuring these will help companies identify risk and opportunities throughout their value chains. This shows where the biggest part of their carbon footprint is, and where to reduce it. A resolution asks DTE Energy to “revise its net zero by 2050 target, and interim targets, to integrate its full Scope 3 value chains emissions consistent with guidelines” such as the Climate Action 100+ and the Science-Based Targets initiative or explain why it does not include them.
- Vote due date: DTE Energy 5/4
- Learn more: Scope 3 Climate Impacts Missing from Utility Net Zero Targets
Reminder: The VOTING DEADLINE for all U.S. companies is midnight Eastern Time on the DAY BEFORE the AGM.
Look for our Proxy Vote Alerts every week. Have a great proxy season!