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Shareholder advocacy is one of the strategies utilized by investors of our ilk, along with community investing and applying screening criteria. Every year, shareholders of publicly traded companies are afforded the opportunity to vote on proxy resolutions that have been submitted to company management by its shareholders. This is the primary way shareholders are able to voice their opinion to management about the policies and procedures that have been or might be put into place by the company.
The 2010 proxy voting season was the strongest ever, with many successes for environmental, social, and governance (ESG) focused investors, some of which are detailed below.
We've also included an update to our shareholder dialogue efforts with Costco on their seafood sustainability, and couldn't resist including a link to the recently released "Story of Cosmetics" animated short, a film produced by the same folks who brought us "The Story of Stuff."
Finally, let us know what's on your mind these days. It is our pleasure to serve you and we look forward to speaking with you soon!
Best Regards,
Eric Smith, CFP®, AIF®
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Strongest Year Ever for Social Shareholder Resolutions
2010 has proven to be a landmark year for environmental, social
and governance (ESG) shareholder resolutions. Here are some of the key
highlights:
2010 2000
-Two majority votes -NO majority votes
-17
votes above 40% -NO
votes above 40% -88
votes above 20% -6
votes above 20%
-361
resolutions filed -266
resolutions filed
-Avg.
vote 19% -Avg.
vote 7%
TOP 3 VOTE RECEIVING RESOLUTIONS
Layne Christensen - Sustainability report (GHG)
- 60%
A record high percentage of shareholders voted
in favor of a sustainability reporting resolution filed by Walden Asset
Management at the large drilling and construction services company, clearly
demonstrating that investors are seeking full transparency on environmental,
social and governance issues.
Massey Energy - GHG emissions reduction goals -
53%
A majority (53%) of shares were voted in favor of a measure filed by the New
York City's Comptroller's Office urging the company to adopt quantitative goals
for reducing greenhouse gas emissions. The vote was one of the highest ever for
a climate-related resolution, and came in the wake of an April mining disaster
that killing 29 miners in West Virginia.
Gardner Denver - Sexual orientation anti-bias
policy - 49%
Almost half of shares were voted in favor of a measure filed by Trillium Asset Management calling for the company to adopt a sexual orientation anti-bias policy. In the resolution, Trillium highlighted the fact that 87% of Fortune 500 companies have already adopted written nondiscrimination policies prohibiting discrimination on the basis of sexual orientation. With such a high percentage of shares voting "FOR" the measure, it is highly likely the company will comply.
For a comprehensive summary of the proxy season click here.
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Sustainable Seafood at Costco: Update #3
 It's been an exciting period of constructive shareholder dialogue with Costco. Last month we joined a group of investors on a phone call with Costco's head fresh seafood buyer, legal counsel, and director of sustainability. The goal was for Costco to take proactive steps towards improving its seafood sustainability policies. The call went really well and resulted in Costco responding in writing this past week, through a document posted on their website, which can be read in its entirety here. Highlights include Costco: - Ceasing the sale of seven wild species that have been identified as at great risk: Atlantic cod, Atlantic halibut, Chilean sea bass, orange roughy, shark, swordfish, and bluefin tuna.
- Working with farmed salmon suppliers to implement standards from the Salmon Aquaculture Dialogue (draft).
- Partnering with World Wildlife Fund to gauge the degree to which Thailand based suppliers meet the Shrimp Aquaculture Dialogue's draft standards and to develop a strategy to guide these suppliers towards compliance.
Dialogue will continue
with Costco, and we remain hopeful for additional positive announcements. Read
the letter from SRI investors to Costco here.
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The Story of Cosmetics:
the ugly truth of "toxics in, toxics out"
 The same folks who produced the popular internet video "The Story of Stuff" have recently collaborated with the Campaign for Safe Cosmetics to produce the new video "The Story of Cosmetics: the ugly truth of "toxics in, toxics out." Using a similarly compelling combination of animation, storytelling, and humor, "The Story of Cosmetics" explains the systemic issues that have lead to such high toxicity in the personal care products found on the shelves of mainstream supermarkets and pharmacies.
While Proctor and Gamble (P&G), a company found in many SRI portfolios, is specifically called out in the video for its use of chemicals in consumer products, it is important to remember that through shareholder advocacy, SRI investors are continually encouraging the company to change its policies. For example, just this year, in response to a resolution filed by Domini Social Investments, Procter & Gamble agreed to disclose the percentage of sustainably-sourced palm oil it procures on an annual basis, starting with its 2011 sustainability report. Without owning shares of P&G, this advocacy simply wouldn't be possible.
Check out the video and let us know what you think!
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Eric Smith, CFP®, AIF®, Senior Wealth Officer
Alice Smith, CRPC®, Financial Planning Specialist
Ryan Jones-Casey, MBA, AAMS®, Financial Services Specialist
Goodfunds Wealth Management
Sustainable and responsible investing services since 1986
206.782.1205 | 800.940.1747 | www.goodfunds.com | Seattle, WAMember, First Affirmative Financial Network
Securities & investment advisory through KMS Financial Services, Inc.Although
the materials referenced in this email may contain investment advice or
recommendations, they are the opinions of the author, fund, or manager
and do not necessarily reflect our opinions or recommendations. E-mails to and from this address are subject to archiving and to review by regulating authorities and supervisory personnel. E-mail is subject to transmission failures or delays so please do not rely on it for time-sensitive matters. Such orders or instructions are best conveyed, or at least confirmed, in a two-way telephone conversation to clarify important details and confirm our ability to act within the relevant time frame. This message may contain material protected under privacy policies and is intended only for the use of the individuals and entities named as recipients. If you are not an intended recipient you are required to notify the sender immediately and delete the material. |
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