Transcript SHARE*s 2015 Engagement Plan

2016 Proxy review
Religious investor workshop | November 17, 2016
It can seem complicated…
Agenda
 2016 voting recap
 Looking ahead to 2017
 Working with your asset manager?
2016 Vote highlights - Canada
• 150 CEO pay votes, two defeated
• Canadian Pacific Railways (50.1%); and
• Crescent Point Energy (70%)
• 56 Shareholder Proposals
•
•
•
•
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Corporate Governance (80%)
Human Rights
Climate Change
Diversity
Political Spending
2016 Shareholder Proposal highlights – Canada
Company
Topic
Restaurant Brands
International
Board diversity
Potash Corporation
Human rights assessment – Western
Sahara (Sisters of Mercy – 7% previous
year)
32%
Suncor
Disclosure of lobbying policy and
payments
40%
Suncor
Report on long term corporate
resilience in low carbon future
98%
Alimentation Couche-Tard Report on process for assessing
operations, products, supply chain
human rights risks
Bell Canada Enterprises
Two of five compensation committee
members to be diverse
Result
16%
(62%)
7%
(42%)
3%
2016 Shareholder Proposal highlights – US
• Major themes
• Proxy access (average support 48%)
• Political spending disclosures (average support 26%)
• Climate change (average support 34%)
• Religious investors also filing proposal on:
• Supply chain worker rights
• Sustainability reporting
• Renewable energy
• Health care
Climate votes: Who were the missing 60%?
98%
Suncor
40%
Exxon
Chevron
98%
BP
Shell
Rio Tinto
Anglo American
Glencore
2017 Proxy outlook - US
• Plans to refile on climate change at Exxon, Chevron and other US companies
• Continuing calls for including shareholder nominated directors in management
proxy (“proxy access”)
• Political spending transparency
• But will incoming administration change the rules?
• Campaign pledge to repeal Dodd-Frank
• Affect on Canada?
2017 Proxy outlook - Canada
• Few social and environmental proposals compared to US
• Governance proposals will dominate
• Possible social and environmental themes
• Diversity and equity
• Climate change – link to Paris convention
• Political spending transparency
• Decent work – ILO conventions
• FPIC and pipeline construction
How are your proxies voted?
Segregated funds
Investor
Asset
manager/agent
Company
Shares owned by investor but most often voted by manager
Pooled funds
Investor
Asset manager
Company
Shares owned by manager; investor owns fund “units” but still exposed to risk
Ask about specific votes:
• Potash human rights proposal?
• Restaurant Brands board diversity
proposal?
• Exxon and Chevron climate proposal?
• Or similar proposals
Ask about voting policy and outcomes
• Review manager/agent voting policy
• Examine environmental, social and
governance voting guidelines
• How often are votes cast against corporate
management’s recommendation?
• How often are shareholder proposals
supported?
Peter Chapman, Executive Director
[email protected]
604 695 2020
www.share.ca