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Trump Administration Continues Attempts to Unravel U.S. Environmental Protections Put in Place Over Many Years - Now, Shareholder Proxy Resolution Actions on Climate Issues Also In Focus For Investors... We should not have been surprised: in 2016 presidential candidate Donald Trump promised that among his first steps when in the Oval Office would be the tearing up of his predecessor’s commitment to join the family of nations in addressing climate change challenges. In 2015 in Paris, with almost 200 nations in agreement, the United States of America with President Barack Obama presiding signed on to the “Paris Agreement” (or Accord) for nations and private, public and social sector organization to work to prevent further damage to the planet. The goal is to limit damage and stop global temperatures from rising about 2-degrees Centigrade, the issues agreed to. As the largest economy, of course the United States of America has a key role to play in addressing climate change. Needed: political will, collaboration among private, public and social sectors, and funding for the transition to a low carbon economy (which many US cities and companies are already addressing). So where is the USA? On June 1st 2017 now-President Trump followed through on the promise made and said that the U.S.A. would begin the process to withdraw from the Paris Agreement on climate change, joining the 13 nations that have not formally ratified the agreement by the end of 2018 (such as Russia, North Korea, Turkey and Iran). Entering 2019, 197 nations have ratified the Agreement. A series of actions followed President Trump’s Paris Agreement announcement – many at US EPA and other agencies -- most of which served to attempt to weaken long-existing environmental protections, critics charged. The latest move to put on your radar: In April, President Trump signed an Executive Order that addresses “Promoting Energy Infrastructure and Economic Growth”. [Energy] Infrastructure needs – a bipartisan issue – are very much in focus in the EO. But not the right kind to suit climate change action advocates. The EO addressed continued administration promotion and encouraging of coal, oil and natural gas production; developing infrastructure for transport of these resources; cutting “regulatory uncertainties"; review of Clean Water Act requirements; and updating of the DOT safety regulations for Liquefied Natural Gas (LNG) facilities. Critics and supporters of these actions will of course line up on both sides of the issues. There are things to like and to dislike for both sides in the president’s continuing actions related to environmental protections that are already in place. And then there is the big issue in the EO: a possible attempt to limit shareholder advocacy to encourage, persuade, pressure companies to address ESG issues. Section 5 of the EO: “Environment, Social and Governance Issues; Proxy Firms; and Financing of Energy Projects Through the U.S. Capital Markets.” The EO language addresses the issue of Materiality as the US Supreme Court advises. Is ESG strategy, performance and outcome material for fiduciaries? Many in the mainstream investment community believe YES! Within 180 days of the order signing, the Secretary of the Department of Labor will complete a review existing DOL guidance on fiduciary responsibilities for investor proxy voting to determine whether such guidance should be rescinded, replaced, or modified to “ensure consistency with current law and policies that promote long-term growth and maximize return on ERISA plan assets”. (Think of the impact on fiduciaries such as public employee pension plans.) The Obama Administration in 2016 issued a DOL Interpretive Bulletin many see as a “green light” for fiduciaries to consider when incorporating ESG analysis and portfolio decision-making. The Trump EO seems to pose a direct threat to that guidance. We can expect to see sustainable & responsible investors marshal forces to aggressively push back against any changes that the Trump/DOL forces might advance to weaken the ability of shareholders – fiduciaries, the owners of the companies! – to influence corporate strategies and actions (or lack of action) on climate change risks and opportunities. Especially through their actions in the annual corporate proxy ballot process and in engagements. You’ll want to stay tuned to this and the other issues addressed in the Executive Order. We’ll have more to report to you in future issues of the newsletter. Click here to President Trump’s April 10, 2019 Executive Order. Facts or not? Click here if you would like to fact check the president’s comments on withdrawal from the Paris Agreement. We are still in! For the reaction of top US companies to the Trump announcement on pulling out of the Paris Accord, check The Guardian coverage of the day. At year end 2018, this was the roundup of countries in/and not. For commentaries published by G&A Institute on the Sustainability Update blog related to the above matters, check out it here. Check out our Top Story for details on President Trump’s recent EO. This Week's Top Stories Trump Order Takes Aim at Shareholders Pushing Companies to Address Climate Change
Global Sustainability: Continuing Forward Momentum! Change The World With What You Buy: Procurement Steps Up To Sustainability The path to sustainability is the key to survival NAR: Sustainability sells Sustainable thinking Corporate water sustainability goals are mostly just talk Supermarkets ramp up sustainability push Packaging Is Killing the Planet—These Start-Ups Offer Luxe, Sustainable Solutions Green Bonds And The Pathway To Sustainability Want to Live More Sustainably? Start With These 17 Items for Your Home and Closet Considerable Attention Being Paid to Sustainability...in Fashion & Retail Walmart and Patagonia were once the 'odd couple' of sustainability. Now, the world's biggest apparel brands are lining up to follow their example. How to Shop Sustainable Denim For Earth Week How Brands Can Really Make their Businesses Sustainable Are these ‘sustainable’ clothing brands the real deal? Why Fashion Can No Longer Ignore Sustainability Keep These Sustainable Brands In Mind When Shopping On Earth Day (& Every Day After) Tune in to Corporate Sustainability Activity... Dr. Scholl’s Shoes Launches Sustainability Initiative NRG Energy’s 2018 Sustainability Report Showcases 37% Reduction in Carbon Emissions Timberland 2018 CSR Report Shows Steady Progress Toward 2020 Sustainability Goals
Growing number of Americans think environment will be worse for next generation, CBS News poll finds Top auto executives are privately very worried about the state of auto sales Climate change makes poor countries poorer, widening global inequality, researchers say American millennials have less money than other generations did at their age — but studies show an alarming amount of them have delusional ideas about their wealth Wait, Reusable Cotton Bags Are Bad for the Environment? Despite Demand for More Diversity and Refreshment, Half of Russell 3000 Companies Report No Change in Board Composition Headlines From the Corporate Sector Tesla Ousts 4 Pro-Elon Musk Directors, Weeks After Shareholders Sue Board The best companies for employees in 2019 Bed Bath & Beyond's co-founders retire from board, adds five new members What’s Jamie Dimon’s salary got to do with income inequality? Abigail Disney's Criticism Of CEO Bob Iger's Pay Raises Difficult Questions McDonald’s is teaming up with AARP to hire older workers Chipotle’s stock drops 6% after the company discloses subpoena related to 2018 illness incident | ________________________________________ New Governance & Accountability
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G&A Institute Sustainability Update™ When Will Sustainable Investing Be Considered to be in the Mainstream? ________________________________________
________________________________________ _________________________________________ Louis Coppola from G&A Institute Goes In Depth on How to Improve ESG Performance
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_________________________________________ FLASH REPORT: 85% of S&P 500 Index® Companies Publish Sustainability Reports in 2017
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