Guns, opiods and climate change are the dominant issues shareholders are focusing on in resolutions filed this proxy season, according to the Proxy Preview 2019 report released Tuesday.
But investors also are showing their concern about such things as political spending, women’s issues and fair pay, said Heidi Welsh, executive director of the Sustainable Investments Institute and co-author of the report.
“The shareholder resolutions that have been filed reflect the big issues of the day,” Welsh said. The things that have changed are that “big mutual fund shareholders are getting more involved in environmental issues and mainstream financial people are acknowledging that the way the issues are handled has a big impact on the bottom line of corporations.”
It does not matter if there are decreased regulatory requirements coming from Washington if shareholders want more information on measures being taken to fight climate change. The market is now seeing that climate change is a big financial risk that companies need to assess, she added.
The report was produced by As You Sow, a nonprofit organization that promotes environmental and social corporate responsibility through shareholder advocacy; Sustainable Investments Institute, which analyzes information on social and environmental issues for institutional investors, and Proxy Impact, which promotes sustainable and responsible business practices.
Nearly 400 shareholder resolutions were filed on environmental, social and sustainable governance issues and most are scheduled for votes at corporate annual meetings this spring.
“Corporate political spending and climate change are addressed in about half the proposals. Others address diversity, better sustainability disclosure, more transparency, and action on human rights, fair pay and equitable working conditions,” the report said. “Investors also will cast votes on corporate connections to contentious immigration practices, digital privacy, hate speech and the opioid crisis.”
“Shareholder proposals challenge corporate boards and give investors a chance to weigh in on how their companies can respond to the biggest issues of our time,” Welsh added. “This year underscores that neither political dysfunction nor a lighter regulatory approach in Washington mean companies can ignore the views of investors.”
Andrew Behar, CEO of As You Sow, added in a statement, “As every environmental and social system reaches a breaking point, corporate executives and boards listen carefully to shareholders who want collaborative action on the path to a safe, just and sustainable future. The 2019 shareholder resolutions offer a roadmap that will help companies and their investors lead the way.”
“Record high shareholder votes in the last two years and growing acceptance of the importance of sustainability issues by mainstream investors have provoked a backlash from some politicians and industry groups [who] want to limit shareholders’ right to speak through these resolutions,” the three groups said in a statement. “It is not yet clear if the U.S. Securities and Exchange Commission rules will be changed, but the 2019 proxy season will certainly provide more fodder for the debate.