The New York City Comptroller’s 2023 shareholder proposals concerning employee equity enjoyed strong backing from investors, and in 2024 the retirement systems intend to step up engagements with issuers on net-zero commitments, according to its shareowner initiatives postseason report.
In a Wednesday report, the New York City Comptroller’s Office reflected on the work of its responsible investment and bureau of asset management teams in 2023, citing “historic wins amid a challenging year for shareholder proposals and ongoing attempts to misinform about ESG.”
According to the report, the Comptroller’s proposals focused on fair and equitable workplaces received the most support. One such proposal, asking Starbucks to commission a third-party assessment of workers’ rights, received 52% support.
Eight months after the proposal was subject to a vote, union group SOC would nominate three directors at the coffee giant, citing “severe human capital mismanagement.”
New York City Systems also secured majority support for a proposal asking Wells Fargo to report on the effectiveness of its policies and processes to prevent harassment and discrimination against protected classes of employees.
In the 12 months ending June 30, 2023, the Systems submitted 32 shareholder proposals, 47% of which were withdrawn, down from 85% in 2023. Average support for proposals was 27%, down from 35% in 2022.
“We were disappointed by investors’ lack of support for common-sense climate resolutions that were entirely consistent with company performance and shareholder interests,” said Comptroller Brad Lander. “We will be considering new options for corporate engagement and shareholder action in 2024 to insist that banks and other portfolio companies act to implement their net-zero commitments. We need to see action, backed by transparent reporting, not just words.”