Carbon Asset Risk
Lamb began a landmark negotiation with Exxon Mobil in 2014, resulting in the company’s first public report on global warming and carbon asset risk that year. But questions remained over Exxon’s potentially misleading disclosure, and the Attorney Generals of New York, Massachusetts and California began an investigation. By 2016, investor concern over climate risks had accelerated and a shareholder collaboration brought a resolution that received 38 percent of the vote. By 2017, with the New York State Common Retirement Fund as part of the shareholder coalition, a new proposal on carbon asset risk received 62 percent of the vote, compelling Exxon Mobil to agree to produce another report. Although the vote is nonbinding, Exxon Mobil chose to comply. This first in reporting on stranded assets represents the collaborative approach Lamb takes to shareholder initiatives, convincing other activist shareholders and institutional investors concerned about long-term fiduciary risks to vote their shares collectively.
Enlightened Engagement
In addition to her positions as a sustainable investment strategist, educator and activist, Lamb prides herself on following market driven economic trends. Arjuna connects clients’ money to their values by using the partners’ collective expertise in identifying which markets and investment themes are expanding or contracting and then advising clients on where and when capital should be deployed.
She compares her work process to that of helping clients find a piece of clothing in a dark closet. Clients are feeling around for what they want but they can’t see well enough to find what they’re looking for right away.
“It’s our job to shed a light in that dark closet and open the door. We help clients make conscious, intentional decisions about their money that make them proud. We want assets under management to be used as a leverage point for change,” exclaims Lamb.
Lamb’s philosophy stems from her core belief in the ownership power of investors. “Too often we give up our power when investing in companies,” she says. “In fact, we do have a voice in helping to steer the long-term trajectory of a company and we shouldn’t give that up, we should use it.”
Lamb believes shareholder activism, as a movement, stimulates investors to activate significant change. Looking at risk holistically and including material environmental, social and governance (ESG) metrics that have traditionally been ignored as off-balance sheet costs sets a standard that gets companies to evaluate how they’re doing business.
Lamb’s work clearly paints a picture of a woman who is more than deserving of the titles she’s garnered. Lamb’s passion for her work is contagious and her approach fearless. Companies shouldn’t be worried that she’s not nice, they should be worried that she’s just getting started.
Paul Ellis founded Paul Ellis Consulting to work with financial advisors who want to integrate sustainable and impact investment strategies for their clients. Kristina Markos, M.L.S., is a senior communications professional specializing in finance and sustainable themes. She also teaches graduate and undergraduate communication courses at Lasell College.