Introducing SGI’s 2018-2020 Strategic Plan

Dear SGI members and friends,

On behalf of the SGI Board, I am proud to present the SGI Strategic Plan for 2018-2020.  This marks a renewed beginning for us as an organization and a structural shift from a “founder-focused mission” to a “member-led coalition.”  We embrace the same passion, focus and values as our founders.  We will continue Fr. Mike’s legacy and mission to “bring Good News to the poor and the planet.”  We will work collaboratively with “ICCR and others to improve corporate decision-making and public policy on environmental, social and governance issues.”  We created the path for our future.  We welcome you to join with us, promote SGI and participate fully in this mission.

 

Faithfully,
Dan Tretow
Board President

Fuel Economy Standards Under Threat

The Environmental Protection Agency faces an April 1 deadline to decide whether Obama-era corporate average fuel economy standards for cars and light trucks from 2022 to 2025 are attainable or should be revised. The earlier conclusion issued by the Obama EPA that no changes to the 2025 standards are needed has already been abandoned by Administrator Scott Pruitt. He also dismissed the possibility of setting standards beyond 2025. “Being predictive about what’s going to be taking place out in 2030 is really hard,” Pruitt said. “I think it creates problems when you do that too aggressively. That’s not something we’re terribly focused on right now.”

In the meantime, Pruitt signaled a showdown with California who has a waiver from the federal law allowing it to set its own air pollution requirements. California set more stringent CAFE targets for both 2025 and 2030. “California is not the arbiter of these issues. California regulates greenhouse gas emissions at the state level, but that shouldn’t and can’t dictate to the rest of the country what these levels are going to be.”

The transportation sector has taken over from electrical power generation as the leading emitter of greenhouse gases (GHG) in the U.S. SGI joined many investors within the Ceres Investor Network earlier this year to send letters to the EPA and members of Congress, as well as to GM and Ford, in support of strong Corporate Average Fuel Economy (CAFE) standards. More recently, SGI signed on to letters addressed to GM and Ford urging them to call out the Alliance of Automobile Manufacturers to end its lobbying and public advocacy that questions climate science. The Alliance efforts to roll back the CAFE standards are in opposition to the auto industry’s support of actions to reduce GHG emissions. The letter also urges Ford and GM to publicly express opposition to changes to the CAFE standards that would lead to increases in GHG emissions.

SGI members continue to advocate that business and our government leaders take immediate action to avert climate change.

ICCR 2018 Proxy Resolutions and Voting Guide

A key tenet of socially responsible investing is the voting of proxies. Proxy voting gives shareholders a say in the workings of corporations, allowing those who own the company to decide on matters of corporate governance. Reviewing both company and shareholder sponsored resolutions is critical in supporting good governance and effective socially responsible practices.

ICCR recently published their 2018 Proxy Resolutions and Voting Guide (download here). This annual Guide has been published since 1974.  This year’s Guide outlines the proxy season, contextualizes the 10 issue areas, and provides the language of the 266 resolutions that were filed by ICCR members. It also describes shareholder advocacy and the proxy process (pg 213). They hosted a webinar (slides here; listen here) to provide an overview of the proxy season and profile a few of most important campaigns including: gender pay gap and paid family leave; ethical labor recruitment; methane emissions; pollinator decline; and drug pricing and the opioid crisis. ICCR members have already negotiated 33 substantive agreements with companies, and have withdrawn their resolutions as a result. Successes include:

  • Costco agreed to disclose its gender and race-based pay gaps;
  • T. Rowe Price has hired a new responsible investing official;
  • AT&T agreed to its first-ever disclosure on key sustainability goals;
  • Marten and Saia agreed to begin training their drivers to spot human trafficking;
  • WEC Energy Group agreed to prepare a 2 degree scenario assessment report (led by School Sisters of Notre Dame).

You are encouraged to use ICCR’s Proxy Resolutions and Voting Guide to vote your proxies or to ask your asset manager to vote them for you.

Top 10 Sustainable Business Stories of 2017

Frank Sherman, Executive Director of Seventh Generation Interfaith

We experienced a record number of extreme weather events in 2017. We also witnessed a different kind of inversion. As our government reversed environmental and social regulations, companies took voluntary actions to protect people and the planet. In a Harvard Business Review profile of the Top 10 Sustainable Business Stories of 2017, business leaders took steps to reduce climate change. As the new administration pulled out of the Paris Agreement and made an all-out assault on our air, water, climate, and land, multinational corporations joined state and local governments to declare We Are Still In. Large institutional investors such as Blackrock and Vanguard woke up to the risk of climate change in voting with faith-based shareholder proposals.

China accelerated their sustainability efforts, stepping into the leadership position given up by the U.S., by committing to cut coal by 30% and cancelling 103 coal plants; making big moves in electric vehicles; and becoming the world’s largest solar producer. As the U.S. administration moved to relax fuel efficiency standards, GM, Ford and Volvo announced major investments in electric vehicles (EV). France, India, Britain, Norway, and China commitment to ban diesel and gas vehicles over the next couple of decades helped push EV sales up 63% globally last year!

Business leaders like Apple’s Tim Cook stood up stating that sustainability that isn’t about philanthropy, but rather about the core business and its role in society. Companies supported state attorney generals’ suit of the administration’s immigration ban and discrimination based on sexual orientation.

Looking ahead at 2018, author Andrew Winston predicted that “Millennials and Gen Z will continue to push for purpose and meaning in work and life”. Companies will set more aggressive sustainability goals and embrace “clean labels” (…like Walmart, Target, and Panera did in 2017). The #metoo movement against sexual harassment will move beyond media and politics to the corporate suites.

Happy New Year!

SGI board plans for the future in strategic renewal workshop

By Sue Ernster, FSPA

On September 21, 2017, ​the Board of the ​Seventh Generation ​Interfaith CRI met in La Crosse, WI to engage in strategic planning for the future as well as acknowledging the changing path of ​the CRI with the death of Fr. Mike Crosby, O.F.M., Cap.

The day’s process was facilitated by Marlene Weisenbeck, FSPA, ​with presentations ​by Frank Sherman, Peg Groth, ​and ​Mark Peters. We spent time in groups discussing the external and internal ​trends impacting our vision and mission​ leading to a SWOT (strengths, weakness, opportunity and threats) analysis​.​ ​The members ​then ​​shared thoughts on ​objectives and strategies for the next 3-5 years​ and ​some specific actions to facilitate this.

After this discussion, we discerned what would be a possible organizational model which may facilitate our agreed upon mission and vision.

​ I found the workshop to be both challenging and energizing. Fr. Mike Crosby left us a 45 year legacy of shareholder engagement. Despite the headwinds of a challenging political environment and the changing demographics of our members, the group came away feeling that this ministry has been a catalyst for change and we must continue in Mike’s footsteps to bring good news to the poor and God’s creation.