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Presented by JBS USA: | | | | |  | | By Jordan Wolman | Presented by JBS USA | | | | | 
| Investor buy-in for environmental, social and governance principles has been on the rise. But interest in the “E,” “S” and “G” of ESG isn’t divided equally. Despite record levels of shareholder proposals filed and passed in areas related to climate, human capital management and social policy this year, interest in and support for proposals related to corporate governance saw a significant dip. Shareholders among the Russell 3000 companies filed 258 corporate governance resolutions in 2022, the lowest in the past five years, according to a report compiled by The Conference Board and ESGAUGE. The governance proposals included topics such as “say on pay,” employee representation on a company’s board, allowing shareholders to call special meetings, and changing the standard needed to elect a director.
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| Meanwhile, proposals related to climate and social policy continued to gain momentum. Resolutions focused on the environment gained the bulk of investor interest in the ESG space, with 555 proposals filed and 82 passed. Those proposals focus on topics such as carbon footprint disclosure, mitigation targets and projected impacts of climate change on business operations.
| | | | A message from JBS USA: What food producers bring to the table should sustain families—and our planet—for generations. That’s why, at JBS, we are investing heavily in achieving net-zero greenhouse gas emissions by 2040. By prioritizing sustainable food production today, we’re able to help ensure a thriving food system for all. Learn More | | | And a record 155 resolutions on human capital management were filed, with 14 passing — more than in the preceding three years. Eight proposals for civil rights audits passed, as did four related to employee arbitration. But none of the 18 resolutions on board and workplace diversity, passed — down from 10 in 2021. Of the 258 corporate governance proposals filed, 211 got a vote and only 30 got majority support, also down compared with the last five years. Based on pass rate, the most success this year came on proposals eliminating a supermajority vote requirement (nine of 11 proposals passed) and making it easier for shareholders to change the board’s composition (all five proposals passed).
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| Paul Washington, executive director of The Conference Board’s ESG Center, said the high level of support for those types of proposals is meaningful. Governance-related resolutions still garner a higher level of average support than proposals focused on environmental and social issues.
| | | | SUBSCRIBE TO POWER SWITCH: The energy landscape is profoundly transforming. Power Switch is a daily newsletter that unlocks the most important stories driving the energy sector and the political forces shaping critical decisions about your energy future, from production to storage, distribution to consumption. Don’t miss out on Power Switch, your guide to the politics of energy transformation in America and around the world. SUBSCRIBE TODAY. | | | | | The report notes that average support levels for board-proposed candidates in director elections have been declining. In 2022, 75 directors nominated by management did not get elected — a multiple of the number recorded only a few years ago. “While many factors can lead to a decline in investor support for directors, proxy advisers and major institutional investors have recently amended their voting policies to indicate their intention to hold specific board members accountable for perceived ESG shortcomings,” the report said. “Board members and C-suite executives should therefore remain educated about ESG issues of concern to the investment community and the proxy advisers that often influence institutional votes.”
| | | | A message from JBS USA:   | | | | | | GAME ON — Welcome to the Long Game, where we tell you about the latest on efforts to shape our future. We deliver data-driven storytelling, compelling interviews with industry and political leaders, and news Tuesday through Friday to keep you in the loop on sustainability. Team Sustainability is editor Greg Mott, deputy editor Debra Kahn and reporter Jordan Wolman. Reach us all at gmott@politico.com, dkahn@politico.com, and jwolman@politico.com. Want more? Don’t we all. Sign up for the Long Game. Four days a week and still free!
| | | | A message from JBS USA: As a food company committed to feeding larger needs, at JBS we believe in sustainable food production. There’s nothing more important than ensuring that our planet can continue to feed us all long into the future.
Because of that, we’re leading the industry in change, targeting 2040 to achieve net-zero greenhouse gas emissions and investing over $1B to reduce, and ultimately eliminate, our emissions.
In doing so, we’re setting a new standard for food production—one that allows sustainable practices, quality products, and affordable prices to go hand in hand. It’s our way of bringing more to the table. Learn More | | | | | | — A new survey has confirmed what many of us already know: America’s political divisions are increasingly reflected in our workplaces. — As the western half of the U.S. continues to suffer from a record-breaking dry spell, Australia’s east coast is experiencing the opposite. — The New York Times has a look at an effort in the Netherlands to reduce the emissions impact of constructing and demolishing office buildings. — Look to Uruguay to understand one model for sustainable living in the 21st Century, The New York Times reports.
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