SGI members score progress with utilities on climate change

This year, SGI members filed resolutions with two midwestern utilities: CMS Energy and WEC Energy Group. Each resolution aimed for the public disclosure of an assessment of the long-term business impacts of limiting global warming to under 2-degrees Celsius, as adopted by the Paris Climate Agreement.

We have great news: both resolutions have been withdrawn as the companies agreed to the main components of the resolutions. Despite the Trump administration’s decision to end the Clean Power Plan, both midwestern utilities rise to meet the challenges of climate change. In fact, CMS announced last week that they reduce carbon emissions by 80 percent and no longer using coal to generate electricity by 2040.

Sr. Ruth Geraets, PBVM of the Sisters of the Presentation of the Blessed Virgin Mary of Aberdeen, SD who led the filing of the resolution at CMS Energy said, “My congregation is concerned about climate change and the critical need to reduce greenhouse emissions because our mission calls us to care for creation. As longterm shareholders in CMS, we believe having a strategy in place to meet climate challenges head-on will improve CMS’ competitive position over the long term. We were pleased to see CMS step up to this challenge with its recently announced clean energy breakthrough goals.”

With respect to the dialogue with WEC Energy Group, on behalf of the School Sisters of Notre Dame, Central Pacific Province, Tim Dewane said, “Pope Francis has said, ‘Reducing greenhouse gases requires honesty, courage and responsibility.’ We thank WEC Energy Group for its efforts in this regard so far. We believe they are not only good for the planet, but they are also in the bottom-line best interests of the company, its customers and shareholders.”

“These two utility companies are climate leaders in the Midwest,” said Frank Sherman, Executive Director of SGI. “They recognize that market forces and their customer base are pushing them to exceed federal climate regulations and state renewable portfolio standards. Although they are big companies, utilities have a very local focus and are highly dependent on the social license granted by the communities where they operate.”

Our partners at ICCR shared a press release about this win which can be found here.

SGI members join investor letter to Walt Disney regarding tobacco depictions in films

When CEO Bob Iger said, during a Q&A session at Disney’s 2015 annual shareholder meeting, the company will “absolutely prohibit” the use of smoking in Disney films rated PG-13 and under, faith-based investors lauded the decision. It built on a prior commitment from 2007 that prohibited smoking in Disney films, but not yet across their brands.

The 2015 commitment was not a decision limited to certain labels: “We are extending our policy to prohibit smoking in movies across the board: Marvel, Lucas, Pixar, and Disney films,” said Iger. Iger offered only two exceptions: films which involve historical figures known for smoking, or scenes that portray smoking in a negative light (emphasizing the detrimental health consequences of smoking). Disney’s full policy can be found here.

In December of 2017, Disney acquired Fox film and television for $52 billion. It remains unclear what Disney will do with the new acquisitions.

SGI and its members joined other investors in a letter to Disney that calls upon the company to apply the same standards to the film and television properties acquired from Fox that it applies to other film and television holdings already within its portfolio.

Again, read the full investor letter here.

SGI Webinar Recording: Immigration and the Shareholder

We offer hearty thanks to Hannah Evans Graf of the Friends Committee on National Legislation (also co-chair of the Interfaith Immigration Coalition) and Dylan Corbett from the Hope Border Institute who joined us for the webinar. Also, to our members and allies from within ICCR or other networks, we are grateful that you joined us.

If you are only seeing this for the first time now, in the webinar we:

  • Reviewed our values and commitments on immigration
  • Assessed the state of play on policy
  • Highlighted what some allies are doing
  • Encouraged deeper investor engagement with our companies around concerns on immigration (e.g., the shareholder letter to JPMorgan Chase concerning investment in private prisons and immigration detention centers)
The slides from the webinar are available here.

Some helpful resources include:

Please, consider evaluating the webinar by clicking here.

FSPA takes CSR to court

When we saw a recent article (Wisconsin groups to get $12M settlement for natural gas price fixing) from the La Crosse Tribune quoting Sr. Sue Ernster, FSPA, we wanted to bring it to the attention of our SGI members.  Sr. Sue adds:

FSPA participated in the lawsuit of the manipulation of natural gas pricing by multiple utilities as another way of how we live out our social justice activities and our values.  We see this as an effort to help those whose voices are not represented in this and other situations.  We are utilizing the resources we have at our disposal to hold those accountable who were responsible for this price manipulation.

Our hope is that participating in litigation settlements such as these, as well as filing shareholder resolutions with companies, demonstrates that people are paying attention, asking questions and holding them accountable for their actions.

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.

Investors call on Congress to reinstate TPS

The Interfaith Center for Corporate Responsibility, with signatures from SGI and 12 of its individual members, sent a letter to the leaders of Congress advocating for “Congress to allow TPS holders to remain in the country and pursue a path to naturalization.”

TPS, temporary protected status, established by Congress in the Immigration Act of 1990, is humanitarian program whose basic principle is that the United States should suspend deportations to countries that have been destabilized by war or catastrophe.

There are approximately 195,000 Salvadorans, 50,000 Haitians, and 2,550 Nicaraguans who are current beneficiaries of TPS status. In addition, there are 5,800 Syrian, 8,950 Nepali, and 57,000 Honduran TPS holders in the United States today. Of the total 10 countries with current TPS designations, approximately 330,000 people (or, adults and children) benefit from TPS. Many have resided in the U.S. for a significant period of time. For instance, more than one-half of El Salvadoran and Honduran, and 16 percent of the Haitian TPS beneficiaries have resided in the U.S. for 20 years or more.

Thanks to our members who individually signed on. May this week have fruitful in deliberations in the U.S. Senate. Again, to read the letter, please visit here.