30 Dec Shareholder Efforts Pay Off
I read a Facebook post some years ago that said it didn’t make a difference for someone to invest in a sustainable fund. To be honest, I don’t recall their rationale, simply that I disagreed then and I would still disagree today.
I’ve always held that we all make a difference, with every word, dollar and moment of time we spend. It’s either a conscious choice or a default one, but it’s still a choice.
The growing interest in sustainable investing is proof that money talks. Shareholder advocacy and management engagement from financial institutions and non-profit organizations push companies to make changes they might not otherwise make.
The following are just a sampling of shareholder efforts that paid off in 2021.
No Deforestation, No Peatland, No Exploitation (NDPE)
In April, JPMorgan Chase expanded deforestation policies under shareholder pressure.
“JPMorgan Chase stated its intention to require all growers or refiners related to the palm oil sector who are its clients to confirm that they are compliant with the principle of “No Deforestation, No Peatland, No Exploitation” (NDPE).”
“Palm oil, timber, and paper products, along with beef and soy, are major drivers of deforestation worldwide. Investors are increasingly putting pressure on companies to address deforestation in these supply chains.”
Source Article April 13, 2021 “JPMorgan Chase expanding deforestation policies under shareholder pressure” @ Mongabay.com
Also visit the European Palm Oil Alliance.
Targeting plastics reduction
Progress was also made with corporations agreeing to cut their plastic use, including Walmart, Target and PepsiCo.
“After engagement with As You Sow on reducing single use plastic packaging, Walmart Inc., the world’s largest company by revenue and largest U.S. grocery retailer, has agreed to cut its use of virgin plastic by 2025. In addition to this commitment, As You Sow has received similar promises from four other major global brands in just the last two months — Keurig, DrPepper, Mondelez International, PepsiCo, and Target.”
Source Press Release May 11, 2021 “Agreement With Walmart to Cut Virgin Plastic Use Marks Fifth Major Corporate Commitment” @ AsYouSow.org.
Apple changes repair policies
Increasing access to repair for devices like smart phones and laptops can reduce electronic waste and greenhouse gas emissions from the manufacturing process. In November, Apple issued a press release announcing that it will soon make parts and repair manuals available to the general public.
“The new policy represents a seismic shift for a company that has fought independent repair for years by restricting access to parts, manuals, and diagnostic tools, designing products that are difficult to fix, and lobbying against laws that would enshrine the right to repair.”
“But Apple didn’t change its policy out of the goodness of its heart. The announcement follows months of growing pressure from repair activists and regulators — and its timing seems deliberate, considering a shareholder resolution environmental advocates filed with the company in September asking Apple to re-evaluate its stance on independent repair.”
Source Article, November 17, 2021 “The shareholder fight that forced Apple’s hand on repair rights“ @ theverge.com.
See also Apple’s press release, November 17, 2021 “Apple announces Self Service Repair – Apple”
This information is general in nature, is not a complete statement of all information necessary for making an investment decision, and is not a recommendation or a solicitation to buy or sell any security. Investments and strategies mentioned may not be suitable for all investors. Past performance may not be indicative of future results.
© Meredith D Sims 2021. Prepared by Heart Strong Wealth Planning.