Shareholder Proposals – 2022

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TSC Perspective

Outcomes

Response to S7-20-22, “Substantial Implementation, Duplication, and Resubmission of Shareholder Proposals” (the “Proposed Rules.”)

September 11, 2022

The Shareholder Commons

In this comment, we highlight positive impact that the Proposed Rules and Reaffirmation will have on the ability of shareholders to express their views and exercise oversight regarding the social and environmental impact that companies have on the economy and diversified portfolios.

This is a critical area where the interests of shareholders and management are more likely to diverge than they are on proposals that are only oriented to the enterprise value of the company itself.

Regulation Pending

Response to S7-11-22, “Enhanced Disclosure by Certain Investment Advisers and Investment Companies about Environmental, Social and Governance Investment Practices” (the “ESG Rule”) and S7-16-22, “Investment Company Names” (the “Names Rule,” and, together with the ESG Rule, the “Proposed Rules.”)

August 16, 2022

The Shareholder Commons

Recognize the distinction between using ESG-related tools to improve the financial performance of individual companies and using such tools in order to preserve social and environmental systems, and thereby improve overall securities market performance.

Recognize the heightened importance of voting and engagement with respect to systemic stewardship by allowing the appropriate use of ESG terminology for funds that focus on ESG stewardship, even if they do not use ESG factors to select 80% of their investments.

Regulation Pending

Response to S7-10-22, “The Enhancement and Standardization of Climate-Related Disclosures for Investors” (the “Proposed Rules”).

June 17, 2022

The Shareholder Commons,   B Lab U.S. & Canada

Climate disclosure needs to focus on economy-wide impacts of company behavior, not just on how climate change affects company performance.

A disclosure framework that would also support a beta stewardship approach whereby investors engage with companies and vote their shares to push companies to end practices that, even if profitable for the company, threaten the economy and thus overall market returns.

Regulation Pending

Request for Information on Possible Agency Actions to Protect Life Savings and Pensions from Threats of Climate-Related Financial Risk

May 16, 2022

The Shareholder Commonss, B Lab U.S. & Canada

The primary focus of the request is to gain an understanding of whether the Employee Benefits Security Administration (EBSA) might take action to protect the retirement savings of U.S. workers and their families from climate-related financial risk.

Pending