Governance – Trillium Asset Management

Verizon Communications, Inc. – Political Spending (2024)

November 10, 2023

Cease Political Contributions Study Whereas: Former chief justice of the Delaware Supreme Court Leo Strine argued in the Harvard Business Review: “Because political donations are controlled by managers, and because no corporate stakeholders, including shareholders, base their relationship with a company on the expectation that it will use its entrusted capital for political purposes, corporate political spending cannot reflect the diverse preferences and views of those stakeholders. Even the classic justification that corporate donations maximize shareholder wealth is on shaky ground: Emerging evidence suggests that they can destroy value by suppressing innovation and distracting managers from more-pressing tasks.” https://hbr.org/2022/01/corporate-political-spending-is-bad-business For …

Bank of America Corp – Climate Lobbying (2024)

October 30, 2023

Lobbying Misalignment with Bank of America’s Goals WHEREAS: Climate change poses a systemic risk, with estimated global GDP loss of 11-14% by midcentury under current trajectories.[1] The U.S. Financial Stability Oversight Council has identified climate change as an increasing threat to the financial system.[2] We believe lobbying and public policy action inconsistent with the Paris Agreement may present an increasingly pressing danger to companies. We applaud Bank of America’s (BAC) commitment to achieving net zero by 2050. BAC acknowledged achieving its net zero goal requires collective action, including by policymakers, and described itself as “supportive of policies that will help …

Verizon Communications, Inc. – Cease Political Spending (2023)

February 7, 2023

Former chief justice of the Delaware Supreme Court Leo Strine argued in the Harvard Business Review: “Because political donations are controlled by managers, and because no corporate stakeholders, including shareholders, base their relationship with a company on the expectation that it will use its entrusted capital for political purposes, corporate political spending cannot reflect the diverse preferences and views of those stakeholders. Even the classic justification that corporate donations maximize shareholder wealth is on shaky ground: Emerging evidence suggests that they can destroy value by suppressing innovation and distracting managers from more-pressing tasks.” https://hbr.org/2022/01/corporate-political-spending-is-bad-business A study of corporate political activity …

IPG Photonics Corp– Diversity Goals (2023)

February 7, 2023

We believe that diversity, inclusive of gender and race, are critical attributes of a well-functioning executive team and necessary to meaningfully drive diversity throughout an organization. The business case for workforce diversity is compelling. McKinsey & Company found in 2015, 2017, and 2019 that companies with highly diverse executive teams had higher returns on equity and earnings performance than those with low diversity.[1] Further, McKinsey reports an increased likelihood of financial outperformance in each successive study. ISS Analytics examined companies where the CEO had a tenure of at least three years and found companies that combined gender diversity in the …

Home Depot Inc. – Political Spending (2023)

February 7, 2023

Whereas: The Home Depot’s Political Activity and Government Relations Policy states that it “actively participates, and encourages its associates to participate, in the political process,” in an effort to ensure that governments of countries “in which we conduct business act responsibly and in the best interest of our customers and associates.” Home Depot sponsors a political action committee (PAC) which “supports public officials and candidates who understand the issues affecting Home Depot and promote a favorable business climate for the Company.” However, The Home Depot’s politically focused expenditures appear to be misaligned with its public statements of its views and …

Ormat Technologies, Inc. – Racial Justice Audit (2022)

January 6, 2022

WHEREAS: Ormat Technologies has one woman on its Board of Directors and racial and ethnic diversity is not disclosed. We believe that diversity among directors, inclusive of race, ethnicity, and gender, is a critical attribute of a well-functioning board and a measure of sound corporate governance. Corporate leaders recognize the strong business case for board diversity. The Guiding Principles of Corporate Governance of the Business Roundtable, an influential association of chief executives, affirms diversity enhances long-term shareholder value and states: “Boards should develop a framework for identifying appropriately diverse candidates, which asks the nominating/corporate governance committee to consider women and/or …

Home Depot – Political Spending (2022)

January 6, 2022

Whereas: The Home Depot’s Nominating and Corporate Governance Committee annually reviews The Home Depot’s political contributions. The Home Depot has stated, “In an effort to ensure that the federal, state and local governments of those countries in which we conduct business act responsibly and in the best interest of our customers and associates, Home Depot actively participates, and encourages its associates to participate, in the political process.” Home Depot sponsors a political action committee (PAC) which “supports public officials and candidates who understand the issues affecting Home Depot and promote a favorable business climate for the Company.” However, The Home Depot’s …

Johnson & Johnson – Independent Board Chair (2021)

September 9, 2021

RESOLVED: Shareholders request the Board of Directors adopt as policy, and amend the bylaws as necessary, to require henceforth that the Chair of the Board of Directors, whenever possible, be an independent member of the Board. This independence policy shall apply prospectively so as not to violate any contractual obligations. If the Board determines that a Chair who was independent when selected is no longer independent, the Board shall select a new Chair who satisfies the requirements of the policy within a reasonable amount of time. Compliance with this policy is waived if no independent director is available and willing …

Paycom Software, Inc.- Board/Executive Diversity (2021)

September 9, 2021

WHEREAS: We believe that diversity, inclusive of gender and race, are critical attributes of a well-functioning executive team and necessary to meaningfully drive diversity throughout an organization. PayCom Software’s management team has no women and an undeterminable number of people of color. The business case for workforce diversity is compelling. McKinsey & Company found in 2015, 2017, and again in 2019 that companies with highly diverse executive teams had higher returns on equity and earnings performance than those with low diversity. Further, McKinsey reports an increased likelihood of corporate financial outperformance in each successive study. ISS Analytics examined companies where the …

Autodesk – Board/Executive Diversity (2021)

September 9, 2021

WHEREAS: We believe that diversity, inclusive of gender and race, are critical attributes of a well-functioning executive team and necessary to meaningfully drive diversity throughout an organization. Currently, Autodesk’s executive team has an undeterminable number of people of color. The business case for workforce diversity is compelling. McKinsey & Company found in 2015, 2017, and again in 2019 that companies with highly diverse executive teams had higher returns on equity and earnings performance than those with low diversity. Further, McKinsey reports an increased likelihood of corporate financial outperformance in each successive study. ISS Analytics examined companies where the CEO had a …