
Advocacy
Change Finance seeks to leverage the power of capital markets to promote a more just and sustainable world. A rigorous investment methodology that relies on environmental, social, and governance (ESG) data is one tool for achieving this goal, but it's not enough. Change Finance is also committed to active ownership. Through the thoughtful and collaborative work of our Shareholder Advocacy Team, we can make a more specific and immediate positive impact.
Our Advocacy Toolbox
Proxy Voting
Proxy voting is the most direct method for shareholders to influence corporate practices. Supporting shareholder resolutions that are in the best interest of people, the planet, and ethical profits is the foundation of shareholder advocacy at Change Finance. We diligently vote our proxies following ESG principles and with the guidance of Glass Lewis.
Corporate Engagement
Shareholders of publicly traded companies own a portion of the business, and therefore, can influence the decisions of corporate management. Change Finance works to identify areas where companies can improve ESG performance and then collaborates with other investors to promote corporate policies that enhance the sustainability, responsibility, and profitability of the business.
Divestment
Change Finance divests from those industries that are fundamentally unsustainable and where engagement efforts are unlikely to be successful. Examples of those industries in which we divest include fossil fuels, tobacco, and weapons. Divestment meets the moral and ethical demands of our clients, while simultaneously insulating them from the risks associated with irresponsible corporate practices.
Shareholder Resolutions
In some situations, Change Finance will seek to file formal shareholder resolutions, a critical tool for active shareholders to have an immediate impact on corporate policy and practices. Resolutions may also bring otherwise reluctant corporate managers to the negotiating table.
Public Policy
A strong public policy framework is critical for incentivizing responsible and sustainable corporate behavior. Change Finance’s memberships and affiliations with organizations, such as USSIF and the FAIRR Initiative, allow us to collaborate with other investors to promote policies supportive of shareholder rights, equality, and democracy.


Justice and Equity
Through our Justice and Equity advocacy, Change Finance seeks to address the structural and systemic issues which lead to unequal and inhumane outcomes, particularly for minoritized groups. We continue to lead campaigns to address systemic racial and gender pay inequity and to work with others on issues ranging from workers' rights to coronavirus response to mass incarceration. Addressing social inequity is better for business, better for society, and better for investors.
Featured Engagement



Tackling the Pay Gap
Black women working full-time in the United States earn just 62% of what men do, and Latinx women, only 54.3%.1 We cannot change what we cannot see. To better understand the distribution of women and people of color at all levels of an organization, Change Finance contacted 121 large cap US companies to request median racial and gender pay gap data. Change Finance also filed a petition on YourStake.org that attracted $330 million in support. We are also working to build a coalition of investors and non-profit stakeholder organizations to support our efforts.
Black women working full-time in the United States earn just 62% of what men do, and Latine women, only 54.3%.2 This inequity isn't just a crime against the Black and Brown women of our nation, it is also an economic disaster. Data from the World Economic Forum shows that women were disproportionately affected by the COVID-19 pandemic and that global gender equality deteriorated over the past year.3 Furthermore, bias and discrimination harm company performance. A 2018 McKinsey study showed that companies with the most gender diversity on their executive teams were 21% more likely to perform better than their industry average than companies with the least gender diversity. The results are even more stark for ethnic and racial diversity.4 The same study showed a 33% improvement from more ethnically and racially diverse teams of less diverse teams.
We cannot change what we cannot see. To better understand the distribution of women and people of color at all levels of an organization, Change Finance contacted 121 large cap US companies to request median racial and gender pay gap data. Change Finance also filed a petition on YourStake.org that attracted $330 million in support. We are also working to build a coalition of investors and non-profit stakeholder organizations to support our efforts.
Shining a light on structural inequities provides a powerful incentive for organizations to change hiring and promotion practices. We expect the data to be absorbed into the lexicon of ESG that is increasingly used to guide investment decisions.
1https://www.americanprogress.org/issues/women/reports/2020/03/24/482141/quick-facts-gender-wage-gap/
2https://www.americanprogress.org/issues/women/reports/2020/03/24/482141/quick-facts-gender-wage-gap/
3World Economic Forum. 2021. Global Gender Gap Report. March. http://www3.weforum.org/docs/WEF_GGGR_2021.pdf
4McKinsey and Company. 2018. Delivering Through Diversity. https://www.mckinsey.com/business-functions/organization/our-insights/deliveringthrough-diversity
Other Engagements & Collaborations
Sponsor:
Ohman Folksam - USSIF
Description:
Urging Amazon to respect workers’ rights to freedom of association and collective bargaining that has attracted the support of investors managing $7 trillion.
Sponsor:
FAIRR Initiative
Description:
Encouraging the largest global protein producers to implement long-term changes while empowering workers to support risk mitigation in Health and Safety, Fair Working Conditions, and Worker Representation.
Sponsor:
Migrant Justice and the Coalition of Immokalee Workers
Description:
Letters to Wendy’s and Ahold that call on these corporations to support worker driven social responsibility, via programs that provide the tools to avoid, mitigate and remedy any adverse human rights impacts.
Sponsor:
Domini Impact Investments
Description:
Initiative to encourage boards and companies to protect workers using a long-term human capital management strategy.
Sponsor:
Adasina Capital
Description:
Opposing efforts to develop and build two prisons in Alabama (Elmore and Escambia Counties) and urging banks and investors to divest from securities linked to mass incarceration.
Sponsor:
Interfaith Center on Corporate Responsibility
Description:
Calling on Denny's to cease lobbying activities, withdraw from the National Restaurant Association, and support a minimum wage in addition to tips for employees in all states where it operates.
Sponsor:
One Fair Wage & Investor Groups
Description:
Calling on Dine Brands Global to support a full minimum wage in addition to tips for employees and to cease activities and policies to the contrary.
Sponsor:
One Fair Wage & Investor Groups
Description:
Calling on Brinker International, Cheesecake Factory, and Darden (DRI) to support a full minimum wage for employees and to cease activities and policies to the contrary.
Change Finance Proxy Votes
Social Policy Proposals

AGAINST MANAGEMENT
Improved Drug Pricing & Distribution

IN FAVOR
Animal Welfare

IN FAVOR
Highlighted Proposal
Sunrun
Nia Impact Capital, led by CEO Kristin Hull, filed a shareholder resolution asking residential solar installer, Sunrun, to report the impacts of the company’s mandatory arbitration policy. Many criticize such policies as tools to cover up misconduct such as sexual harassment. In presenting the resolutions, Hull stated that “arbitration allows bad corporate behavior, like bias, harassment and discrimination, to continue, hidden from other employees, and investors.” Change Finance applauds Nia's work and is proud to support the proposal.
For:
58.4%
Against:
40.0%
Withheld:
1.6%
Passed
Engagement Highlights
Progressive
In a conference call with Progressive, members of the Change Finance Shareholder Advocacy Team presented the ethical and business case for taking a leadership position relative to pay transparency. Progressive, eager to attract the growing number of investors focused on ESG criteria, asked for guidance in publishing such information. In response, Change Finance provided examples from other large corporations and continues to communicate with Progressive on the most effective path forward.
Verizon
Verizon highlighted its achievement of race and gender pay equality documented in its 2019 ESG Report. Additionally, Verizon touted equitable hiring and promotion practices while the Verizon Foundation announced a $10 million commitment to several organizations dedicated to equality and social justice. These are commendable actions; however, Verizon does not currently publish median racial and gender pay gap data. Change Finance continues to push for that information, as we strongly believe that investor scrutiny provides the best incentive to achieve real results. The dialogue with Verizon is ongoing.

Climate and Environment
Through our Climate and Environment advocacy, Change Finance seeks to preserve and enhance the natural systems that are critical to public health, biodiversity, environmental justice, and economic prosperity. Some researchers have concluded the economic value of those natural systems may be as high as $54 trillion per year.1 Advocating for corporate practices that do not degrade our natural capital, most notably the climate, is critical to the long-term goals of investors.
Featured Engagement


Blackrock
In the first quarter of 2021, members of Change Finance's Shareholder Advocacy Team met with senior members of BlackRock's Investment Stewardship Team to press the organization to vote in support of climate critical shareholder resolutions. While our discussion with BlackRock was largely encouraging, other organizations have received similar responses, only to be disappointed in subsequent proxy voting seasons. We intend to pause our dialogue until a third-party analysis of BlackRock's votes is conducted later this year.
Research indicates that the global economy must reduce carbon emissions by 50% or more within the next decade to limit average global surface temperature rise to 1.5˚C.2 Additionally, corporations that pollute air and water contribute to the 8.3 million deaths from ailments such as asthma while disproportionately affecting communities of color, thus intensifying social inequities.3 To have any chance of success in addressing these issues, corporations across the energy, utility, automotive, and financial services sectors must rapidly alter their business practices.

Banks and asset managers play a significant role in financing business activities that harm people and planet, but their core business is not unsustainable. Since investments and loans may be redirected relatively easily, Change Finance has elected to focus on engaging financial institutions as the most efficient method of promoting environmental sustainability. Unfortunately, BlackRock, the largest asset manager globally, has ignored its own public statements by almost uniformly supporting fossil fuel industry management teams while also voting down many shareholder resolutions intended to address the climate crisis. According to research conducted by Majority Action, BlackRock used its proxy votes to support just 3 of 36 “climate-critical” shareholder resolutions in 2020 while it supported nearly all company-proposed directors at auto, utility, and oil & gas companies.4 BlackRock’s CEO, Larry Fink, received wide praise earlier this year for making commitments to sustainable investing and environmental stewardship; however, wide disparities exist between the asset manager’s public statements and its actions on climate change.

To take action, Change Finance submitted a letter to BlackRock requesting changes and adherence to the organization’s document titled Blackrock Investment Stewardship: Corporate Governance and Proxy Voting Guidelines for US Securities and filed a petition on YourStake.org. Change Finance also organized a coalition of investors representing $3.5 billion in assets under management to support the request.
In the first quarter of 2021, members of Change Finance's Shareholder Advocacy Team met with senior members of BlackRock's Investment Stewardship team. BlackRock officials touted several improvements to their stewardship guidelines and said they expect future assessments from Majority Action to be more favorable. We believe that the Investment Stewardship team at BlackRock is both capable and well intentioned; however, it remains unclear how much the team can guide firm-wide voting practices that would have a meaningful impact on carbon emissions. While our discussion with BlackRock was largely encouraging, we know that other organizations have received similar responses, only to be disappointed in subsequent proxy voting seasons. For this reason, we intend to pause our dialogue until a third-party analysis of BlackRock's votes is conducted later this year. If significant disparities continue to exist between the company's rhetoric and actions, we stand ready to redouble our efforts.
1Costanza, Robert, Ralph D'Arge, Rudolf De Groot, Stephen Farber, Monica Grasso, Bruce Hannon, Karin Limburg, Shaid Naeem, Robert V. O’Neill, Jose Paruelo, Robert G Raskin, Paul Sutton, and Marjan van den Belt. 1997. "The Value of the World's Ecosystem Services and Natural Capital." Nature 387, no. 6630 (May): 253-260. Accessed February 2, 2018. http://dx.doi.org/ 10.1038/387253a0.
2Stanford Woods Institute for the Environment. 2019. “A Roadmap to Reducing Greenhouse Gas Emissions 50 Percent by 2030.” Stanford School of Earth, Energy, and Environmental Services. https://earth.stanford.edu/news/roadmap-reducing-greenhouse-gas-emissions-50-percent-2030#gs.4i2m4g
3Sifferlin, Alexandra. 2017. “Here’s How Many People Die from Pollution Around the World.” Time, October 19. https://time.com/4989641/water-airpollution-deaths/#:~:text=Air%20pollution%20was%20linked%20to,to%20nearly%20one%20million%20deaths.
4TBD
Other Engagements & Collaborations
Sponsor:
Green Century Capital Management
Description:
Calling for the extension of tax credits and incentives for clean energy solutions that will drive critical progress in addressing the climate crisis through 2030.
Sponsor:
FAIRR Initiative
Description:
Encouraging the largest salmon companies to develop a science-based approach to diversify feed ingredients to better manage ESG risks associated with sourcing wild forage fish and soy.
Sponsor:
Trillium Asset Management
Description:
Urging the Environmental Protection Agency and Congress to use their authority to afford permanent protection for Alaska’s Bristol Bay wild salmon fishery.
Sponsor:
FAIRR Initiative
Description:
Advancing science-based strategies to develop and scale alternatives to marine and soy feed ingredients to protect biodiversity, reduce climate risks, and ensure the future resiliency of aquaculture.
Sponsor:
Domini Impact Investments
Description:
Supporting bills that would incentivize the development of and compliance with No Deforestation, No Peat, and No Exploitation (NDPE) policies, drive transparency, and deforestation-free government bonds.
Sponsor:
Interfaith Center on Corporate Responsibility & Ceres
Description:
Calling on the Biden administration to rapidly advance methane regulations for the U.S. oil and gas sector.
Sponsor:
Supporting the California Climate Risk Disclosure Act
Description:
Supporting pending legislation in California that recognizes climate change, physical and transition risks, and its link to business and investments.
Sponsor:
Ceres
Description:
Supporting a collective statement about essential principles the SEC should incorporate into a climate change disclosure rulemaking.
Change Finance Proxy Votes
Environmental Policy Proposals

AGAINST MANAGEMENT
Improved Environmental Reporting

IN FAVOR
Action on Climate Change

IN FAVOR
Highlighted Proposal
S&P Global
Shareholders approved the emissions reduction plan for S&P Global, a financial analytics, data, and rating provider. The plan targets a 25% reduction in scope 1 and 2 greenhouse gas emissions from a 2019 base year. In a press release, S&P states that its goals are consistent with limiting average global temperature rise to 1.5°C and were validated by the Science Based Targets Initiative, the United Nations Global Compact, the World Resources Institute, and the World Wide Fund for Nature. S&P also supports increased climate-related financial disclosure and has introduced a Carbon Adjusted Earnings Per Share metric into its reporting.
For:
87.8%
Against:
0.04%
Withheld:
11.8%
Passed

Governance and Policy
Through our Corporate Governance and Public Policy advocacy, Change Finance seeks to create incentive structures for corporate managers that benefit all stakeholders. We also advocate for public policy that addresses social inequality, preserves natural capital, and strengthens the foundation of our economic system, democracy. In our opinion, these actions transcend political ideology and should be supported by all who pursue investment returns from capital markets. Without changes and improvements to existing corporate and public governance frameworks, the environmental and social ills plaguing the world today are likely to persist.
Featured Engagement


A Stand for Democracy
In April, 2021 over 500 corporations voiced their public support for our democratic institutions by signing on to a widely published statement by the Black Economic Alliance. Following this statement, Change Finance formed a coalition of investors representing $6.8 billion in assets under management to press 75 corporations who did not sign to publicly support democratic institutions, voting rights, and transparency regarding political giving.

Investments rest on a foundation of confidence in issuers of securities, social stability, and the rule of law. In the absence of these critical elements, investors confront risks such as corruption, fraud, and conflict. For example, the citizens of Venezuela have suffered from hyperinflation and shortages of basic necessities under the authoritarian regime of President Nicolás Maduro. For the benefit of our clients and all universal owners, Change Finance is committed to supporting democracy and public policy that increases confidence in institutions and our economic system. Political instability and violence threaten consumer confidence, the bedrock of our financial system. In the wake of the political violence that occurred at the United States Capitol on January 6th, 2021, and subsequent discriminatory voting legislation passed in multiple states, over 500 corporations voiced their public support of a statement initiated by the Black Economic Alliance. Signatories included a diverse spectrum of businesses and investors, ranging from Warren Buffet to General Motors. Despite the impressive support, we believe that more corporations and individuals should support a non-partisan call for voting access, considering that a well-functioning democracy is critical for economic growth.

For this reason, Change Finance's Shareholder Advocacy Team urged companies in our portfolio to publicly support democratic institutions, voting rights, and transparency regarding political giving. We formed a coalition of investors representing $6.8 billion in assets under management to communicate these sentiments to 75 corporations that had yet to make such public statements as of April, 2021.
Salesforce
Change Finance is proud to have partnered with the non-profit, Shareholder Commons, to file a shareholder resolution asking Salesforce.com to reincorporate as a Public Benefit Corporation.
For investors to reap strong investment returns that do not come at the expense of people and the planet, society must create the proper incentive structure for corporate managers. Shareholder primacy, a doctrine that places the financial benefit of the shareholder above other stakeholder considerations, has incentivized corporate managers to relentlessly pursue short-term profit at all cost. This paradigm has led to adverse long-term consequences such as climate change, wealth inequality, and biodiversity loss. Under shareholder primacy, fiduciary duty to shareholders constrains even the most enlightened and forward-thinking CEOs.
A relatively new corporate framework, the Public Benefit Corporation (PBC), seeks to alleviate the limitations of shareholder primacy by granting corporate managers the ability to consider the best interest of all stakeholders. This is a critical and exciting new legal structure that enables corporations to behave more responsibly and create greater value. The world would benefit if more publicly traded companies pursued PBC status, which is why Change Finance is proud to have partnered with the non-profit, Shareholder Commons, to file a shareholder resolution asking Salesforce.com to reincorporate as a PBC. Salesforce.com is a signatory to the Business Roundtable's Statement on the Purpose of a Corporation, which proclaims, "we share a fundamental commitment to all of our stakeholders. . . . We commit to deliver value to all of them, for the future success of our companies, our communities and our country." We believe that Salesforce.com endeavors to live up to the Statement but is hampered by the expectation and the legal framework associated with shareholder primacy.
On behalf of our clients and in alignment with most investors, Change Finance is a universal owner.1 We invest in a wide selection of companies that reflect the market as a whole; therefore, our clients suffer when companies make decisions that impose broad economic costs and benefit from decisions that balance the needs of all stakeholders. As a benefit corporation, Salesforce.com would have legal protection when it makes decisions that are beneficial to all stakeholders, including our clients.
1UNEP Finance Initiative and PRI. 2011. Universal Ownership - Why Environmental Externalities Matter to Institutional Investors. https://www.unepfi.org/ fileadmin/documents/universal_ownership_full.pdf
Other Engagements & Collaborations
Sponsor:
US Impact Investing Alliance
Description:
Urging the Biden-Harris Administration to advance policies that will enhance the private sector’s engagement on critical social and environmental issues.
Sponsor:
Civic Alliance
Description:
A statement affirming the legitimacy of the most recent U.S. election, calling on all Americans to accept the will of voters and support an orderly and peaceful transfer of power without delay.
Sponsor:
American Sustainable Business Council
Description:
A statement of business solidarity stating that the assault on the U.S. Capitol must be condemned, and those who incited the event must be held accountable.
Sponsor:
Interfaith Center on Corporate Reponsibility
Description:
Calling on Alphabet, Facebook, and Twitter to take steps necessary to address their role in enabling and facilitating political violence.
Sponsor:
USSIF
Description:
Affirming that the coronavirus pandemic, racial injustice, economic inequality, and climate change must be key priorities for the Biden-Harris Administration.
Sponsor:
USSIF
Description:
Supporting S.J. Res. 16 / H.J. Res. 36 that will repeal the Securities and Exchange Commission's amendments to the shareholder proposal rule.
Sponsor:
Change Finance
Description:
Change Finance filed a shareholder proposal requesting that Salesforce protect its commitment to addressing the needs of all stakeholders by becoming a Public Benefit Corporation.
Change Finance Proxy Votes
Governance Policy Proposals

AGAINST MANAGEMENT
Board Independence Chair / CEO

IN FAVOR
Political Spending & Lobbying Transparency

IN FAVOR
Highlighted Proposal
Veeva
In a seminal moment for corporate governance, Veeva, a provider of cloud-computing services to the pharmaceutical and life sciences industries, will become the first publicly traded company to convert to a Public Benefit Corporation (PBC). This corporate structure is foundational for the promotion of a stakeholder economy and we praise Veeva management for supporting the resolution which passed with overwhelming support. Veeva shareholders signaled to the world that responsible business is not antithetical to profit, paving a path for other large corporations to follow suit.
For:
98.9%
Against:
1,1%
Withheld:
0.0%
Passed