June, 24 2021, 12:19pm EDT
Record Breaking Year for Environmental, Social, and Sustainable Governance (ESG) Shareholder Resolutions
Nearly three dozen majority votes highlight historic increase in shareholder support.
WASHINGTON
The Proxy Preview team today released highlights of the unprecedented 2021 proxy season, which saw nearly three dozen majority votes for disclosure and action on environmental, social, and sustainable governance (ESG) shareholder resolutions.
To date, there have been 34 majority votes for ESG proposals, shattering last year's record of 21. More are likely by year's end. Last year, only two votes broke 70%, while this year 17 did. Eight were in the 80s and six saw more than 90% support. Four of the six that received more than 90% were supported by management -- a first for U.S. environmental and social resolutions. More importantly, other high-scoring proposals were opposed by management but still earned huge support.
"This has been an extraordinary year with record high votes for climate change, diversity, and political spending issues," said Michael Passoff, CEO of Proxy Impact and co-author of Proxy Preview. "Shareholder proposals about the COVID-19 pandemic and sexual harassment also received majority votes, while new proposals on racial justice gained unusually high support."
"The slew of majority votes suggests investors at large see ESG as material," said Heidi Welsh, Executive Director of the Sustainable Investments Institute (Si2) and co-author of Proxy Preview. "Evidence from the financial markets seems to contradict the intent of new SEC rules that will make it harder to file and resubmit shareholder proposals in 2022," Welsh added, noting that the SEC's own analysis showed most individuals will not be able to sponsor proposals at all.
"Looking ahead, the question now is how companies will implement changes to their policies and practices in response to these high votes, and how investors respond if they don't," said Andrew Behar, CEO of As You Sow and report publisher. "This year we saw three out of four dissident directors elected at ExxonMobil after shareholders lost patience with its inaction on climate change. All boards have been put on notice this could happen to them."
Top votes include:
Political Spending: Proposals about the ways in which companies influence the political system accounted for the largest group of majority votes -- 14. The top votes were for more election spending oversight and disclosure with 80.6% at Netflix and 80.1% at Chemed. A resolution asking for a report about climate change lobbying and advocacy, both directly and indirectly through trade and other associations, won 76.4% at Norfolk Southern, while the top vote for more generalized disclosure on lobbying was 66.3% at GEO Group.
Climate and environment: Eight climate change proposals earned more than 50% and resulted in the two highest votes of the year. Investors gave 98.8% support for reporting on supply chain deforestation impacts at Bunge and 98% for reporting on net-zero GHG goals at General Electric -- though management supported both. Yet votes were extraordinary even with management opposition, hitting 81.2% in favor for more disclosure on plastics pollution at DuPont de Nemours, 80.3% for adopting greenhouse gas (GHG) emission goals at Phillips66, 76.2% for reporting on deforestation in the supply chain of Bloomin Brands, and 60.7% for cutting GHG emissions from oil and gas products sold by Chevron.
Diversity: The national debate over racial justice made itself known in proxy season by many more proposals about diversity in the workplace and executive suite, and on boards, with nine majorities. At the top were a resolution asking IBM for details on the effectiveness of diversity, equity, and inclusion programs (94.3% with management support), one asking Paycom Software about executive diversity (93.7% after management did not take a position), and 91.2% for more board diversity at First Solar despite a recommendation against it by the board. Board diversity also received 85.3% at Badger Meter, while a call for EEO-1 data disclosure earned 86.5% at Union Pacific, where a request for diversity program data also received 81.4%.
COVID-19: Concerns about the pandemic were at the heart of the third highest vote this year. Although Wendy's tried to keep a proposal about reporting on pandemic worker safety off the proxy ballot with an SEC challenge, it failed and in the end the company supported the proposal--prompting a 95.2% vote.
Sexual Harassment: A resolution on mandatory arbitration-which can hide sexual harassment problems-received 53.2% at Goldman Sachs and even more (59.4%) at solar panel maker Sunrun.
Racial Justice: Although they did not receive majority support, two new proposals about conducting racial justice audits received unusually high support for first-year resolutions, with 44.2% at Amazon.com and 40.5% at JPMorgan Chase.
As You Sow is the nation's non-profit leader in shareholder advocacy. Founded in 1992, we harness shareholder power to create lasting change that benefits people, planet, and profit. Our mission is to promote environmental and social corporate responsibility through shareholder advocacy, coalition building, and innovative legal strategies.
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PEN America Cancels Awards Ceremony Amid Boycott Over 'Disgraceful' Gaza Response
"We cannot, in good faith, align with an organization that has shown such blatant disregard of our collective values," a group of authors and translators wrote in an open letter.
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The prominent free expression group PEN America announced Monday that it has canceled its 2024 literary awards ceremony amid growing backlash over the organization's response to Israel's assault on Gaza and alleged attempts to suppress dissent among its employees.
The decision came after nearly half of the authors nominated for PEN America awards withdrew their names from consideration, accusing PEN America of not sufficiently speaking out against Israel's war on Gaza and the dire consequences for free expression.
The awards ceremony was scheduled to take place on April 29 in Manhattan.
In an open letter released last week, dozens of authors and translators who refused to accept any honors from the organization wrote that "PEN America has remained shamefully unwilling to speak out against the systematic nature" of Israel's "often-targeted killings of Palestinian writers, professors, and journalists and their families."
"We stand in solidarity with one another and with the people of Palestine in our refusal to lend our names and tacit approval to PEN America's disgraceful inaction," reads the open letter, which demands the resignation of PEN America CEO Suzanne Nossel, president Jennifer Finney Boylan, and the group's entire executive committee.
"We cannot, in good faith, align with an organization that has shown such blatant disregard of our collective values," the letter adds. "We stand in solidarity with a free Palestine. We refuse to be honored by an organization that acts as a cultural front for American imperialism. We refuse to gild the reputation of an organization that runs interference for an administration aiding and abetting genocide with our tax dollars. And we refuse to take part in anything that will serve to overshadow PEN's complicity in normalizing genocide."
"We have been disgusted, for months, by the sight of these leaders clinging to a disingenuous façade of neutrality."
Clarisse Rosaz Shariyf, PEN America's literary programming chief officer, said in a statement Monday that "we greatly respect that writers have followed their consciences, whether they chose to remain as nominees in their respective categories or not."
"We regret that this unprecedented situation has taken away the spotlight from the extraordinary work selected by esteemed, insightful, and hard-working judges across all categories," Rosaz Shariyf added. "As an organization dedicated to freedom of expression and writers, our commitment to recognizing and honoring outstanding authors and the literary community is steadfast."
Outrage over PEN America's approach to Israel's war on the Gaza Strip has been intensifying for months.
In March, as Common Dreamsreported at the time, Naomi Klein, Michelle Alexander, and other high-profile writers pulled out of the PEN World Voices Festival, accusing PEN America of betraying "the organization's professed commitment to peace and equality for all, and to freedom and security for writers everywhere."
After initially refusing to do so, PEN America late last month joined its global parent PEN International in calling for an immediate cease-fire in Gaza. But the organization's critics—including current and former employees—argue it has failed to clearly and forcefully condemn Israel's assault, which has killed more than 34,000 people in Gaza and fueled a catastrophic humanitarian emergency.
"We have been disgusted, for months, by the sight of these leaders clinging to a disingenuous façade of neutrality while parroting hasbara talking points," the open letter from PEN America award nominees states. "We have also been appalled to learn that management has sought to suppress the off-hours political speech and activity of its own workers, in part by suggesting language by which staffers could be punished for participating in any political activity that undermines PEN America's mission."
The Interceptreported late last month that PEN America staffers also raised concerns in December over Nossel's decision to visit Israel amid the country's devastating attack on Gaza.
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U.S. Sen. Bernie Sanders said Monday that he would put forth an amendment to remove offensive military funding for Israel from a House-passed aid package that the Senate is set to consider this week.
The amendment would "cut billions in offensive military funding to Israel from the proposed national security supplemental package," Sanders (I-Vt.) said in a statement. The package, approved by the Republican-controlled House over the weekend, includes $17 billion in unconditional military assistance to the Israeli government, which stands accused on the world stage of perpetrating genocide in Gaza.
The senator said he would also offer an amendment to "protect essential humanitarian operations" in the Gaza Strip, where millions of people are facing the possibility of starvation due to Israel's suffocating and illegal blockade. At least 28 children under the age of 12 have starved to death in Gaza in recent weeks.
Sanders' amendment would restore U.S. funding to the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA), the most important aid agency working in Gaza.
An independent report released Monday found that Israel has not provided any evidence to support its claim that a significant number of UNRWA employees are members of terrorist organizations. The U.S. suspended its UNRWA aid in late January in response to Israel's unsubstantiated allegations against the agency's workers, and the House-passed Israel legislation would prohibit funding for the organization.
Sanders said Monday that the Senate "should have a chance to debate and vote on the key components of such a massive package."
"In poll after poll, Americans have showed their increasing disgust for [Israeli Prime Minister Benjamin] Netanyahu's war machine and the humanitarian disaster it has caused in Gaza," the senator added. "Enough is enough. We cannot continue to fund this horrific war."
I look forward to offering amendments tomorrow to cut billions in offensive military funding to Israel from the proposed national security supplemental package and protect essential humanitarian operations. We cannot continue to fund this horrific war. pic.twitter.com/8JpxpT7IX2
— Bernie Sanders (@SenSanders) April 23, 2024
A Senate vote on final passage of the White House-backed aid package—which also includes aid for Ukraine and Taiwan—is expected before Wednesday night. As Punchbowl reported, "each senator will be limited to just one hour of remarks" following procedural votes on Tuesday, so "it's likely that those who oppose the measure won't be able to drag this out much later than tonight."
The Senate vote on whether to hand Israel billions more in unconditional military aid will come as the country's military appears poised to escalate its devastating assault on the Gaza Strip, which has killed more than 34,000 people so far.
Satellite imagery obtained and analyzed by Al Jazeera shows that Israel has positioned "troops and vehicles at nearby army bases and outposts just outside the enclave."
"The analysis indicates that Israel has deployed more than 800 military vehicles to two bases," the outlet continued. "At least 120 vehicles are stationed at the northern border of the Gaza Strip and 700 are in the Negev desert, to the south. The satellite imagery also reveals that Israel has established nine military outposts just outside the enclave. Three were erected in November and December 2023 and six were set up between January and March of this year. The outposts house soldiers, operational command centers, and military vehicles."
A U.S. State Department report released Monday acknowledges that Israel has been credibly accused of grave human rights abuses in Gaza and the West Bank, including extrajudicial killings and torture. U.S. law prohibits American military assistance for governments violating human rights, but the Biden administration has resisted global calls to cut off arms sales to Israel.
"The widespread nature of the abuses described in the human rights report is overshadowed by the State Department's inaction on these same findings," Raed Jarrar, advocacy director of Democracy for the Arab World Now, said Monday. "The State Department needs to read its own report and take immediate action against all abusive Israeli units."
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Columbia Faculty Walk Out Over Student Suspensions, Arrests for Gaza Protests
While expressing gratitude for solidarity actions, Congresswoman Ilhan Omar—whose daughter was suspended—said that "this about the genocide in Gaza and the attention has to remain on that."
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Over 34,000 Palestinians in Gaza have been killed by U.S.-backed Israeli troops, and Columbia University students have been suspended and arrested by New York Police Department officers in recent days for protesting the slaughter—which led to a walkout by the Ivy League institution's faculty on Monday.
The Guardian reported that "hundreds of members of the teaching cohort at Columbia walked out in solidarity with the students who were arrested" while "students put protest tents back up in the middle of campus on Monday after they were torn down last week when more than 100 arrests were made."
Yonah Lieberman, co-founder of IfNotNow, a Jewish-led U.S. group that organizes against Israel's apartheid, declared: "Solidarity with these faculty members. Shame on establishment politicians and agitators who are smearing the anti-war protest at Columbia as anything other than what it is: a courageous stand for freedom and peace."
Naureen Akhter, a founding member of the New York-based group Muslims for Progress, said: "Thank you to the professors who stood in solidarity with student protestors, who didn't give into instigators who are fanning flames of hate and division. Remember the calls are for transparency, divestment, and amnesty for students!"
Congresswoman Ilhan Omar (D-Minn.)—a critic of Israel's war on Gaza whose own daughter, Isra Hirsi, was suspended from Columbia's Barnard College last week for "standing in solidarity with Palestinians facing a genocide," as the 21-year-old junior put it—also noted the faculty walkout and "nationwide Gaza solidarity movement."
"This is more than the students hoped for and I am glad to see this type of solidarity," said Omar. "But to be clear, this about the genocide in Gaza and the attention has to remain on that."
Summary of events from the last day not related to Columbia:\n\n- Israel has not provided evidence that UNRWA staff are part of Hamas\n- A mass grave, including women/children was discovered\n- Doctors did an emergency c-section, saving a baby after an airstrikes killed her mother— (@)
The walkout in New York City followed 54 Columbia Law School professors sending a letter to administrators that states, "While we as a faculty disagree about the relevant political issues and express no opinion on the merits of the protest, we are writing to urge respect for basic rule-of-law values that ought to govern our university."
"Procedural irregularity, a lack of transparency about the university's decision-making, and the extraordinary involvement of the NYPD all threaten the university's legitimacy within its own community and beyond its gates," they wrote. "We urge the university to conform student discipline to clear and well-established procedures that respect the rule of law."
In a statement early Monday, several hours before the walkout, Columbia University president Minouche Shafik—who last week enabled NYPD arrests of students at the encampment—announced in her first statement since the sweep that all classes would be virtual "to deescalate the rancor and give us all a chance to consider next steps."
"Faculty and staff who can work remotely should do so; essential personnel should report to work according to university policy. Our preference is that students who do not live on campus will not come to campus," Shafik said. "During the coming days, a working group of deans, university administrators, and faculty members will try to bring this crisis to a resolution."
The national group Jewish Voice for Peace (JVP) on Monday accused Columbia of creating "a climate of repression and harm for students peacefully protesting for an end to the Israeli genocide against Palestinians in Gaza" over the past six months.
"Columbia University has actively created a hostile environment for students who are Palestinian or who support Palestinian freedom. Additionally, the administration's actions have made the campus much less safe for Jewish students," JVP said.
According to JVP:
Instead of listening to the calls of Columbia and Barnard students to divest from the genocide perpetrated by the Israeli government, the university has called in the NYPD to arrest students, suspended them, and even expelled them. At present 85 students, 15 of whom are Jewish, are suspended.
Yesterday's statement by the White House, like the administrators of Columbia University, dangerously and inaccurately presumes that all Jewish students support the Israeli government's genocide of Palestinians. This assumption is actively harming Palestinian and Jewish students.
The administration has not only harassed Jewish students and failed to ensure their safety and well-being, it has also obstructed their religious observances during Shabbat and prevented them from accessing their Jewish community on the eve of Passover.
While President Joe Biden's Sunday statement was officially about Passover—a Jewish holiday that begins at sundown on Monday—and not the protests at Columbia and other campuses across the country, it was widely received as a response to the latter.
Biden said in part that "we must speak out against the alarming surge of antisemitism—in our schools, communities, and online. Silence is complicity. Even in recent days, we've seen harassment and calls for violence against Jews. This blatant antisemitism is reprehensible and dangerous—and it has absolutely no place on college campuses, or anywhere in our country."
Jonathan Ben-Menachem, a Ph.D. student at the university, toldCNN that "Columbia students organizing in solidarity with Palestine—including Jewish students—have faced harassment, doxxing, and now arrest by the NYPD. These are the main threats to the safety of Jewish Columbia students."
"On the other hand, student protesters have led interfaith joint prayers for several days now, and Passover Seder will be held at the Gaza solidarity encampment tomorrow," he added. "Saying that student protesters are a threat to Jewish students is a dangerous smear."
Columbia Students for Justice in Palestine said in a lengthy statement that "we are student activists at Columbia calling for divestment from genocide. We are frustrated by media distractions focusing on inflammatory individuals who do not represent us. At universities across the nation, our movement is united in valuing every human life."
"As a diverse group united by love and justice, we demand our voices be heard against the mass slaughter of Palestinians in Gaza," the statement continues. "We've been horrified each day, watching children crying over the bodies of their slain parents, families without food to eat, and doctors operating without anesthesia. Our university is complicit in this violence and this is why we protest."
The Columbia Spectator reported Monday that Columbia College passed a divestment referendum that "asked whether the university should divest financially from Israel, cancel the Tel Aviv Global Center, and end Columbia's dual degree program with Tel Aviv University," with respective votes of 76.55%, 68.36%, and 65.62%. However, a statement from a university spokesperson signaled the referendum would not lead to any shift in campus policies.
Beyond Columbia, there are ongoing demonstrations at institutions including the Massachusetts Institute of Technology, New York University, the University of Michigan, and Yale University, another Ivy League school, where at least 47 peaceful student protesters were arrested on Monday.
Those arrested were "charged with class A misdemeanors, which is the highest class of misdemeanors in Connecticut—the same degree applies to third-degree assault," according to the Yale Daily News. Citing a university spokesperson, the student newspaper added that they "will be referred for Yale disciplinary action—which could include reprimand, probation, or suspension."
Pushing back against some administrators' statements, journalist Thomas Birmingham, who was with the Yale protesters overnight, said on social media: "Here's some things I saw... 1. Repeated and loud calls to remain peaceful. 2. Students locking arms, teaching Arabic and Hebrew, and passing around pizza and water. 3. Lots of singing."
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