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Shareholder Advocacy Report – Fee Only Fiduciary Financial Planners, Retirement Planning, Socially Responsible Investing, Tucson & US

On this publish, I will present some shareholder advocacy updates. Shareholder advocacy includes: direct dialog with corporations, filing shareholder resolutions and voting proxies. See our video here.

Impression Investment Returns

I get asked this frequently, so I needed to briefly tackle it.  How do sustainable, responsible, impression funding (SRI) returns examine to conventional index investments?

I can level to at some returns comparing indexes to SRI. The table under exhibits the 1 yr and 5 yr annualized returns for indexes and SRI funds in the same class. I am not displaying that each SRI fund outperforms the index. I’m displaying that returns from SRI funds are aggressive and consistent with the index returns.

Fund Ticker Efficiency
1yr 5yr annizd
*Russell 1000 21.7% 15.7%
Calvert Giant Cap Core Index CSXAX 20.1% 15.eight%
iShares MSCI KLD 400 Social DSI 20.3% 15.7%
Vanguard FTSE Social Index VFTSX 23.6% 17.4%
Calvert Fairness CSIEX 25.1% 14.5%
*S&P MidCap 400 16.2% 15.zero%
Parnassus Mid-Cap PARMX 15.2% 14.0%
Calvert MidCap Index CMJAX 18.2%
Walden Midcap WAMFX 18.8% 14.2%
*MSCI EAFE 25.0% 7.9%
Domini Impression International Fairness DOMiX 25.three% 10.0%
*MSCI Emerg Mkt 37.3% 4.4%
Calvert Emerging Markets CVMAX 44.3% 9.4%
*Barclay US Agg Bond three.5% 2.1%
Calvert Bond CSIBX 4.4% 2.2%
*S&#zero38;P 500 19.4% 13.4%
iShares International Clean Power ETF ICLN 21.1% 8.three%
*Russell 1000 Value 13.6% 14.zero%
Praxis Value Index MVIAX 16.zero% 13.7%

Efficiency as of 1/1/2018

A report by GIIN exhibits a comprehensive assessment of obtainable research so far on the financial efficiency of influence investments. The report finds that influence buyers that focus on market-rate returns can achieve them. You will get the report here: https://thegiin.org/research/publication/financial-performance

One other level on performance is considering the place SRI funds range from indexes – see our weblog on the SRI vs conventional index performance. Traditional index funds have extra publicity than SRI funds to: international banks, fossil gasoline corporations, and weapons. SRI funds have more publicity to know-how than traditional indexes. When banks, fossil fuels and/or weapons outperform the broader market, conventional indexes will outperform SRI funds.  Once they underneath perform the market or when know-how outperforms the market, SRI funds will outperform. Nevertheless, the difference in efficiency given the quantity of distinction in the two approaches will usually lead to small efficiency differences.

Shareholder Advocacy

RE 100

The RE 100 – a worldwide initiative launched in September 2014 by the CDP and Climate Group – has shortly reached essential mass. RE100 galvanizes firms to decide to a time-bound objective to energy the whole thing of their operations with renewable power, and gives technical and academic assistance to help make the objectives reality. Over 100 international corporations with a mixed $2.5 trillion in revenue, with the assistance and encouragement of an investor group that features First Affirmative, have made the dedication.

Domini

2017 shareholder resolutions filed by Domini.

Lead filer:
AT&T Indirect political contributions 30%
Chipotle Mexican Grill Sustainability reporting Settlement Reached
Intercontinental Trade Stock exchanges and sustainability disclosure 10%
Kraft Heinz Deforestation 13%
Michael Kors Defending migrant staff in international supply chains Settlement Reached
Motorola Options Defending migrant staff in international provide chains 12%
Nucor Lobbying report (tied to climate change) 38%
Co-filer:
Biogen Pharmaceutical pricing Excluded at SEC
Merck Pharmaceutical pricing Excluded at SEC
PepsiCo Pesticide pollution 9%
UPS Renewable power objectives Settlement Reached

Calvert

ADVOCACY AREA NUMBER OF RESOLUTIONS FILED SIGNIFICANT OUTCOMES
CLIMATE CHANGE AND ENERGY eight Dillard’s agreed to report to the Carbon Disclosure Undertaking to describe Management of local weather risks and impacts, whereas Amgen agreed to evaluate its subsequent steps on renewable power and disclose its current and future renewable power initiatives. Six proposals went to a vote at annual meetings, including a number of filed with electric utility corporations, which are beneath strain as concern about climate change and corresponding regulation threaten to disrupt enterprise as typical.
WATER RISKS AND IMPACTS IN AGRICULTURE three Dean Meals and Recent Del Monte dedicated to report on water danger and water danger administration of their operations and supply chains. The global meals sector, which uses 70 % of the world’s freshwater assets, faces elevated financial and operational danger from shrinking water supplies.
BOARD OVERSIGHT OF SUSTAINABILITY AND BOARD DIVERSITY 2 Bed Tub and Beyond will amend its governance documents to mirror the Board of Director’s oversight of setting and social risks. Our proposal at Discovery Communications on board variety earned 18 % help; we filed a board variety proposal for the second yr in a row. On October 21 the company introduced that will probably be adding Susan Swain to the Board of Administrators.
HUMAN RIGHTS AND INDIGENOUS PEOPLES’ RIGHTS three Calvert continued to affirm its commitment to guard Indigenous rights by submitting resolutions relating to offensive and inaccurate portrayals of Native People at Netflix and degrading sports activities groups names at FedEx Corp. Calvert additionally co-filed a proposal at Kroger on human rights in the firm’s provide chain, addressing the world of excessive danger for meals retailing corporations. The proposal earn 25% help at its annual assembly.
MARKETING TO CHILDREN 2 Calvert co-filed proposals at Alphabet (Google) and Time Warner about company coverage responses to public health considerations, notably how on-line advertising to youngsters affects youngsters’s vitamin, obesity and health. Each proposals have been withdrawn for additional dialogue.
SUSTAINABILITY REPORTING eight HealthSouth and Liberty Media committed to increase their sustainability disclosure on their websites, and OGE Power committed to organize a report, which in every case, particularly addresses workplace issues, security performance, and efforts to enhance operational efficiency and scale back useful resource waste. In addition, another company pledged to determine an interdepartmental sustainability panel to supervise disclosure of its sustainability info.
MINIMUM WAGE REFORM 2 Calvert co-filed two proposals. Panera Bread will assess worker benefits and compensation after which report out to shareholders.

FIRST AFFIRMATIVE

First affirmative is a community of SRI financial planners. They manage money for advisers.

COMPANY REQUEST LEAD FILER STATUS
ENVIRONMENT & CLIMATE CHANGE Kinder Morgan (re-file) Report analyzing “carbon asset risk” and company plans to deal with international considerations relating to fossil fuels and their contribution to local weather change First Affirmative 38.2% help
Hess Company (refile) Report analyzing “carbon asset risk” and company plans to deal with international considerations relating to fossil fuels and their contribution to local weather change As You Sow 30% help
Emerson Electric Problem a sustainability report Walden Withdrawn, report revealed Walden Withdrawn, report revealed
Mondelez Report on impacts of firm continuing to use non-recyclable packaging As You Sow 27.5% help
Costco Report on company actions to assess, disclose, scale back and optimally handle meals waste Trillium Withdrawn, successful dialogue
Entire Meals Report on firm actions to evaluate, disclose, scale back and optimally manage meals waste Trillium 30.4% help
Kroger Concern annual reviews on its provide chain impacts on deforestation, and progress in the direction of decreasing such impacts Inexperienced Century 22.9% help
Goal Difficulty annual reviews on its provide chain impacts on deforestation, and progress in the direction of decreasing such impacts Inexperienced Century Withdrawn, profitable dialogue
HUMAN RIGHTS Goldman Sachs Report on the appliance of the businesses indigenous peoples policy to the financing of Dakota Access Pipeline As You Sow Withdrawn, profitable dialogue
Morgan Stanley Report on the appliance of the companies indigenous peoples policy to the financing of Dakota Entry Pipeline As You Sow Withdrawn, successful dialogue
GOVERNANCE BlackRock Report on incongruities between the corporate’s proxy voting practices and coverage positions relating to local weather change First Affirmative (co-lead w/ Walden) Withdrawn, profitable dialogue
Bank of New York Mellon Report on incongruities between the company’s proxy voting practices and coverage positions relating to local weather change Walden 6.52%
JPMorgan Chase Report on incongruities between the corporate’s proxy voting practices and policy positions relating to climate change Walden Withdrawn, successful dialogue
LOBBYING AND POLITICAL SPENDING Travelers Put together report summarizing insurance policies governing lobbying and detailing expenditures, including lobbying completed on the corporate’s behalf by trade organizations. First Affirmative 37.4% help
Conoco Philips Put together report summarizing policies governing lobbying and detailing expenditures, including lobbying completed on the company’s behalf by trade organizations. Walden 23.9% help

TRILLIUM

Trillium’s shareholder activism highlights might be seen here: http://www.trilliuminvest.com/wp-content/uploads/2014/08/Q1-Q2-2017-ShareholderAdvocacyHighlights.pdf

GREEN CENTURY

Inexperienced Century’s impression investing highlights for 2017 are here:
https://www.greencentury.com/shareholder-advocacy/