Mutual Funds and Climate Change: Growing Support for Shareholder Resolutions

Author
R. Berridge, J. Cook
Publisher
Ceres
Publication date
May 2009
Type
Periodical Articles
Industry
Finance
Category
Environment/Climate Change
Stakeholder Engagement
SRI/Sustainable Finance
Discipline
Finance
Environmental Management
Language
English
Link
Mutual Funds and Climate Change: Growing Support for Shareholder Resolutions
Free/Pay for content
Free
 

Key findings of the study include:

  • The notable increase in average resolution support by mainstream mutual fund families, combined with an increase in abstentions by certain fund groups, produced a significant decrease in opposition to climate resolutions by mutual funds compared to previous years;
  • Leaders among mainstream mutual fund companies on proxy voting in 2008 include: TIAA-CREF, Charles Schwab and Credit Suisse;
  • Twelve mainstream fund companies supported more than 50 percent of climate resolutions in 2008, up from an average of five fund companies over the previous four proxy seasons;
  • Poor performers in 2008 include the largest mutual fund companies – American Funds, Fidelity, Vanguard and State Street Global Advisors – each of which failed to support even a single climate resolution;
  • Some well-known fund companies continued 2007’s inconsistent behavior by voting against most (or all) climate resolutions even after having issued research reports and/or products addressing climate risks and opportunities. These include State Street Global Advisors and JPMorgan Chase;
  • The investment community as a whole (mutual funds, plus all other investors) is supporting climate resolutions at record levels, as described in Section 12.
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