Investors working with Rhia Ventures filed a record 30 proposals this proxy season to advance comprehensive and reproductive health care, double the number from the 2022 proxy season. The subject matter of the proposals expanded from last year’s focus on risk mitigation and political spending misalignment to include a number of new areas of concern that have intensified since the U.S. Supreme Court overturned the constitutional right to abortion in June 2022. Since that ruling, 12 states have enacted total or near-total abortion bans, and 13 are expected to. Furthermore, a lawsuit is working its way through the courts that could shut down the distribution of a key pharmaceutical used in medication abortions.
Proposals were filed at five companies (UPS, Coca-Cola, Lowes, TJX and Pepsi) calling for a report to shareholders on the risks to the company associated with enacted and proposed state policies severely restricting reproductive rights and any strategies they are undertaking to minimize or mitigate these risks. To date, a withdrawal agreement has been reached with TJX. In the 2022 proxy season, proposals of this type averaged 31 percent in support.
With bounty hunters and law enforcement agencies seeking to turn in and prosecute those seeking abortions, the privacy of online health data, search histories and geolocation data is more in need of protection than ever. Investors have filed proposals at 10 companies with access to such data, pressing them to enact or strengthen existing guardrails around the collection, storage, sharing or selling of such information to law enforcement agencies and data brokers. The companies receiving this proposal were Alphabet, CVS, Meta, Walmart, Verisk, American Express, Bank of NY Mellon, Mastercard, LabCorp and PayPal. Withdrawal agreements have been reached with Verisk and Bank of NY Mellon.
Proposals were filed at health insurers UnitedHealth, Elevance Health and Humana to encourage them to make certain plan offerings – coverage of elective abortions, enhanced contraceptive coverage and the extension of travel benefits to obtain reproductive health coverage out of state – standard for every insurance tier where permissible by law. Each of these proposals was withdrawn after discussion with shareholders.
Two hospital chains, Tenet and HCA Healthcare, received proposals calling on them to provide clearer medical guidance on the legality of providing abortions in emergency situations in states where abortion is severely restricted. It has been widely reported that doctors have been struggling with the legality of providing terminations in circumstances where pregnancy loss is inevitable and endangers the health or life of the pregnant person. Some patients have been denied care by health care providers. The proposal was withdrawn at HCA after the company clarified publicly that its physicians are expected to provide emergency abortion services.
Eight companies have received proposals calling attention to companies’ support for anti-abortion politicians and political committees (AbbVie, Comcast, Cigna, Coca-Cola, Home Depot Pfizer and UnitedHealth), and an agreement with AT&T has been reached including a pioneering political spending disclosure plan.
On a related topic area, Tara Health Foundation filed a proposal at Ulta Beauty focusing on how the company might expand its maternal health care benefits. Ninety-four percent of Ulta’s employees are women. The proposal was withdrawn after constructive dialogue with the company.
Shelley Alpern
Director of Corporate Engagement, Rhia Ventures