Climate change and corporate political activity top list of investors’ ESG concerns, according to study from As You Sow
Shareholders have filed a record number of resolutions on environmental and social issues so far in the 2014 US proxy season as investor concern over climate change and corporate political activity deepens, according to the As You Sow shareholder advocacy group.
Investors had filed 417 resolutions related to ESG matters as of mid-February, compared with about 365 at the same time last year, As You Sow says in its 2014 Proxy Preview report. Resolutions on climate change and energy alone have risen more than 50 percent to 90 so far this proxy season.
‘This year we have broken every record on the number of resolutions filed, and over the past decade the average vote in support of social and environmental resolutions has nearly doubled,’ writes Andrew Behar, CEO of As You Sow, in the report’s executive summary. ‘This is just the beginning, as shareholders large and small activate their portfolios and use the power of their proxies to continue to advocate for change.’
Shareholder resolutions related to corporate political activity form the biggest single category of proposals, accounting for 30 percent of the total, although this category has grown at a slower pace than others. Environment and energy account for 19 percent while sustainability covers 12 percent.
Diversity is the subject of 11 percent of the resolutions filed so far this proxy season, the data shows. The number of resolutions related to board diversity has grown while shareholders have filed fewer resolutions on workplace diversity.
Investor organizations focused on advocating for SRI are the primary filers behind 31 percent of the resolutions so far this season, up from 29 percent last year, making them the largest single group, reveals the study. Calvert Investments is the primary filer on 20 resolutions, making it the most prolific filer of the group, followed by Trillium Asset Management with 19.
Pension funds account for 24 percent of the shareholder resolutions, down from 26 percent last year, while faith-based organizations are responsible for 17 percent of the resolutions, unions 9 percent and foundations 7 percent. Special interest groups including People for the Ethical Treatment of Animals and the conservative National Center for Public Policy Research between them filed 6 percent.
