ESG Proxy Vote Alerts

Proxy Season Hits High Gear – Climate Change is #1 Concern

Below are key votes for the week of April 25-29.

Last year broke records year with 39 majority votes and this year investors have filed more climate resolutions than ever; the two trends meet early this proxy season for what may be one of the highest votes of the year. Shareholders are also raising crucial questions about banks that finance continued reliance on fossil fuels and projects that infringe on Indigenous Peoples’ rights. Next week also will see the only votes of the year on Covid-19 resolutions as shareholders continue to say companies are putting profits before people.

Climate Transition Plans

Many of this year’s climate resolutions ask for details on how companies plan to reach net-zero goals. Boeing’s management has taken the unusual step of supporting As You Sow’s resolution, which should earn it a 90%+ vote. Related proposals ask companies about GHG reduction goals (Valero Energy); reporting in accordance with the Taskforce on Climate-related Financial Disclosure (TCFD) and adopting science-based targets (Berkshire Hathaway). They also seek an annual climate risk report based on TCFD recommendations (Charter Communications) and information on how Marathon Petroleum’s climate transition plan will affect its workers and local communities.

 

Bankrolling the Climate Crisis

Scientists have repeatedly issued dire warnings that we must quickly move away from fossil fuels to avoid catastrophic climate change. But since the 2015 Paris climate agreement, the largest banks have financed more than $4 trillion dollars of fossil fuel exploration, development and production. Shareholder proposals ask Bank of America, Citigroup, Goldman Sachs, Wells Fargo and JPMorgan Chase to align their lending and underwriting with their net-zero commitments and to stop financing new fossil fuel development. Citigroup and Wells Fargo also face resolutions on how their human rights policies and obligations align with the rights of Indigenous Peoples given projects on their lands.

Covid's Global Impact

Health experts say that worldwide vaccination is the only way the coronavirus pandemic will end and allow global health and the economy to recover. Pfizer and Moderna proposals say the companies should share their vaccine technology and knowledge with more manufacturers in lower-income countries, while the companies contend this would be too risky. In a separate resolution, Pfizer is asked about board oversight of patent protection efforts, what the proponents call “anti-competitive practices” that use so-called "patent thickets" to delay competition and keep drug prices high. Similarly, Johnson & Johnson faces two proposals about its Covid-19 vaccine, taxpayer support and the impact of limiting vaccine access on public health and the economy.

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!