Activist investors secure early wins in reducing plastic use among major corporations like Disney and Hormel, spotlighting the growing influence of shareholder advocacy on environmental practices.
Joseph Winters reports for Grist.
In short:
- Shareholder groups have persuaded companies to commit to more transparent reporting and reduction of plastic usage, emphasizing the impact of single-use plastics on their financial health.
- Notable companies, including Disney and Hormel, have made significant commitments towards reducing their plastic footprint in response to shareholder advocacy.
- The strategies include negotiating for environmental concessions before shareholder resolutions are voted on, showcasing a preference for dialogue over confrontation.
Key quote:
“It’s unnerving investors.”
— Douglass Guernsey, shareholder advocate at Green Century Capital Management
Why this matters:
Shareholder activism is pushing for corporate accountability on environmental issues, highlighting its potential to contribute significantly to global efforts in reducing plastic pollution and enhancing sustainability. More than 1,500 institutions representing more than $40 trillion in assets have pledged to stop investing in fossil fuel companies.
