Companies Take Notice of Green Proposals

Shareholders voted on 69 percent more environment-related shareholder proposals in 2007 than they did in 2005, according to the latest research by The Corporate Library. The new report, The Environmental Agenda Heats Up – Trends in Environmental Shareholder Proposals, identifies trends in environment-related shareholder proposals over the last three years and looks at how the current proxy season is shaping up. The potential risks that U.S. companies might face if they fail to address environmental issues are also examined.

Using data from The Corporate Library’s database and CERES, the study notes that the number of shareholder resolutions found on proxy statements underestimates the effect of shareholder activism, as growing numbers of resolutions are being withdrawn when companies agree to make changes to their environmental policies.

Furthermore, environment-related resolutions that make the ballot have garnered steadily increasing support over the period studied. “This increased level of support means that companies can no longer afford to dismiss the environment as a fringe concern,” said Research Associate Sasha Pagella, author of the report. “Perhaps the growth in the number of withdrawn resolutions for 2008 is an indication that this is beginning to happen.”

The Report is available from The Corpoate Library ($)