Broker Check

Harnessing Shareholder Advocacy

April 03, 2024

In recent years, shareholder advocacy has emerged as a powerful force driving positive change within companies. With a focus on Environmental, Social, and Governance (ESG) factors, investors are actively influencing corporate behavior to better align investments with their values and long-term objectives.

At Terra Blue Wealth Management, we recognize the importance of sustainable investing for our active community members. We believe that shareholder engagement is crucial, especially as ESG practices have evolved from exclusionary to inclusionary models.

Our commitment to transparency and accountability is reflected in our use of Yourstake reporting tools, which allow us to illustrate the measurable ESG components of our clients' portfolios and highlight shareholder advocacy wins. Through Yourstake, we track various measures, including Health, Environment, Human Rights, Equal Opportunity, and Accountability.

Let's take a look at some examples of impactful shareholder advocacy.

  • Through advocacy efforts, shareholders were able to encourage Micron Technologies to implement increased facility sanitation stations at the onset of the pandemic.
  • Another example is how shareholders played a pivotal role in guiding Veeva to become a public benefit corporation, aligning its mission with profit and purpose.
  • Through shareholder advocacy, JP Morgan Chase was pushed to disclose the climate impact of its financial activities.
  • They also pushed F5 Networks to enhance sustainability reporting on data security and workforce equality.

These examples underscore the importance of understanding how fund companies leverage their voice for positive change. Every shareholder possesses a voice that grows louder as capital expands. It's essential to reflect on how this voice is being used and whether it aligns with your moral expectations and personal investment goals.

Shareholder engagement is not just about financial returns—it's about driving meaningful change, fostering transparency, and promoting sustainable practices that benefit both investors and society as a whole. Let's continue to harness the power of shareholder advocacy to create a better, more sustainable future for all.

Investments are subject to risk, including the loss of principal. Environmental, social, and governance (ESG) criteria is based on a set of nonfinancial principles in addition to financial principles used to evaluate potential investments. The incorporation of nonfinancial principles (i.e., ESG) can factor heavily into the security selection process. The investment’s ESG focus may limit investment options available to the investor. Past performance is no guarantee of future results.