Amazon Employees for Climate Justice vow to persist despite defeat of their resolution and snub by Jeff Bezos

In the end, approximately 7,700 Amazon employees publicly signed their names to an employee-shareholder resolution calling for stronger climate change action by the company, as well as worker protection in situations related to extreme weather disasters. The entire Board opposed the resolution (and all other shareholder resolutions presented at the meeting), despite the strong employee support and the endorsement by two of the largest proxy advisory firms in the U.S., which cited the financial and reputational risks from being heavily dependent on cheap fossil fuels.  “Amazon and CEO Jeff Bezos challenged on climate change. Here’s how shareholders voted on it and other issues” in the Seattle Times  is full, business-like news account of the meeting, including that Amazon intends to release its carbon footprint later in 2019, and that it intends to meet the net zero carbon emissions goals of  the Shipment Zero initiative largely through direct emission cuts, not through buying carbon offsets. However, according to “Jeff Bezos Wouldn’t Even Come On Stage to Listen to His Employees Who Want Amazon to Address Climate Change” in Gizmodo, Bezos and other executives dodged most climate-related questions in the Q&A at the end of the meeting.

Amazon employees 2The group leading the climate resolution, Amazon Employees for Climate Justice, issued their own press release about the meeting, which states: “Because the Board still does not understand the severity of the climate crisis, we will file this resolution again next year. And we will announce other actions in the coming months. We – Amazon’s employees – have the talent and experience to remake entire industries with incredible speed. This is work we want to do.”  Follow further developments at the Amazon Employees for Climate Justice Twitter feed .

Tellingly, Jeff Bezos declined the direct invitation of one of the leaders to join her on stage as she introduced the resolution,  a fact which has been widely reported, not only by Gizmodo , but also in “World’s Richest Man Jeff Bezos Hides Backstage as Amazon Workers Demand ‘Bold, Rapid’ Climate Action” in Common Dreams and even in “Jeff Bezos blew off Amazon employees’ proposal at the shareholder’s meeting and they were miffed: ‘This is not the kind of leadership we need‘” in Business Insider.  

Other, briefer reports of the meeting appeared in The Guardian ,  Los Angeles Times   and in Vox .

FTQ shareholder resolution calls for GHG targets aligned with the Paris Agreement; corporations respond with a charge of “micromanagement”

As part of its stated Action Plan for Engaging in a Just Energy Transition , the Fonds de Solidarité des Travailleurs du Québec  (FTQ) (an investment fund controlled by Quebec trade unions) put forward the following shareholder’s resolution  at the Cenovus Energy Annual Meeting in Calgary in April.  (The text of the resolution appears on page 51, as Appendix A in the company’s Information Circular):

Resolved: That Cenovus Energy Inc. (“Cenovus”) set and publish science-based greenhouse gas (GHG) emissions reduction targets that are aligned with the goal of the Paris Agreement to limit global average temperature increase to well below 2 degrees Celsius relative to pre-industrial levels. These targets should cover the direct and indirect methane and other GHG emissions of Cenovus’ operations over medium and long-term time horizons. Such targets should be quantitative, subject to regular review, and progress against such targets should be reported to shareholders on an annual basis.

The Board’s written response and recommendation  states “…..Cenovus has always and will continue to assess our approach to climate change risk management with a view to maximizing shareholder value. ….Achieving the level of commitment contemplated by the Paris Agreement requires an integrated plan at a national and global level, with policies to guide the actions of governments, individuals and corporations to collectively work together toward the desired outcome. Our view is that it is an overly demanding request, and contrary to the best interests of shareholder value, to require an individual company to unilaterally set targets….   As such, we recommend voting against the proposal.”  And sure enough, as expected, the FTQ proposal was defeated by an  89% vote against. The news is summarized  and in The Energy Mix  and  by the CBC  .

The  Fonds de Solidarité des Travailleurs du Québec (FTQ), along with the Canadian shareholders’ non-profit  SHARE, was also part of the recent resolution to Exxon . That resolution, filed in the U.S.  by a group of investors led by the New York State Common Retirement Fund and the Church Commissioners for England, proposed that the company develop “short-, medium- and long-term greenhouse gas targets aligned with the goals established by the Paris Climate Agreement to keep the increase in global average temperature to well below 2°C and to pursue efforts to limit the increase to 1.5°C.”  In response,  ExxonMobil   applied for and received permission from the  U.S. Securities Exchange Commission (SEC), allowing it to exclude the resolution from its Proxy Circular.  In retaliation, SHARE states in a blog, Why we’ll vote against Exxon’s entire board of directors, that it is “recommending to our proxy voting clients that they withhold their support for all Exxon directors at the upcoming annual general meeting on May 29th.”

The “Micromanaging” argument:  “Investors Worried About Climate Change Run Into New SEC Roadblocks” from Inside Climate News (May 3), in addition to providing a good overview of shareholder actions, explains: “The term “micromanage” has become the linchpin to objections by companies seeking to block these resolutions. The precedent was set last year when the SEC agreed with EOG Resources, a Texas-based oil and gas exploration company, that a resolution asking the company to adopt emissions goals had sought to “micromanage” the company.”  More in  “Exxon Shareholders want action on climate change: SEC calls it micromanagement”  in the Washington Post (May 8). According to the CBC report about the FTQ resolution at  Cenovus, the corporate CEO called the proposal “overly demanding”, and said  “we had challenges with the prescriptive nature of the proposal”,  echoing the industry’s language and strategy.

To stay up to date: The U.S. non-profit As you Sow  monitors corporate environmental and social responsibility, including climate change and the energy transition  – through  press releases  , reports, and an up-to-date database of resolutions .

Climate Change Initiatives of Canadian Companies

The 2013 Canadian report of the CDP (formerly the Carbon Disclosure Project), was released on October 1, ranking the Canadian companies doing the best job of investing to cut greenhouse gas emissions and preparing for climate change. The report was prepared by Accenture on behalf of the non-profit CDP, and is based on questionnaires sent to the 200 largest Canadian companies by market capitalization (the “Canada 200”), as listed on the Toronto Stock Exchange (TSX). Key results: 85% of respondents say that climate change is integrated into their business strategy (an increase from 77% in 2012); 64% of respondents offer incentives for “climate performance” (from 14% from 2012). The five top Climate Performance Leadership companies are: ARC Resources Ltd., Thomson Reuters, Bank of Montreal, Suncor Energy, and TD Bank. 

See the Canadian Report at: https://www.cdproject.net/CDPResults/CDP-Canada-200-Climate-Change-Report-2013.pdf. The U.S. version of this report is based on the 500 S & P-listed companies and is available at: https://www.cdproject.net/CDPResults/CDP-SP500-climate-report-2013.pdf

Global Aviation Industry Agrees to Develop Emissions Curbs

At the meetings of the International Civil Aviation Organization in Montreal on October 4, the ICAO approved what they called an historic framework agreement, authorizing the development of global market-based measures to curb greenhouse gas emissions over the next three years, for implementation in 2020. The resolution encourages nations to develop new aircraft technology, adopt carbon-dioxide standards and use sustainable alternatives to jet fuels. By rejecting a European Union proposal to include aviation in the EU emissions trading system immediately, the ICAO drew criticism from green groups who criticize the slowness of the 2020 start date.

See the Bloomberg news summary at: http://www.bloomberg.com/news/2013-10-04/first-global-emissions-market-for-airlines-wins-support.html and http://www.bloomberg.com/news/2013-10-04/carbon-cuts-loom-for-airlines-as-icao-eyes-global-market.html.

Canada’s position is set out in Canada’s Action Plan on Reducing Greenhouse Gas Emissions from Aviation, at: http://www.tc.gc.ca/eng/policy/aviation-emissions-3005.htm 

 

New Research Initiatives Underway

1) In the U.S., a new research initiative led by hedge fund billionaire Tom Steyer, former U.S. Treasury secretary Henry Paulson, and outgoing mayor of New York Michael Bloomberg aims to calculate the true financial cost of climate change. In a report expected in summer 2014, “Risky Business” will “combine existing data on the current and potential impacts of climate change with original research to reveal the most vulnerable sectors and assist with preparation”. According to Bloomberg Markets Magazine, the team also hopes to show that the eventual consequences of “business as usual” will outweigh its short-term benefits. See http://riskybusiness.org/about or http://www.bloomberg.com/news/2013-10-01/climate-change-rescue-in-u-s-makes-steyer-converge-with-paulson.html  

2) Launched on September 24, the new Global Commission on the Economy and Climate, co-chaired by Nicholas Stern, will conduct a “year-long, $9 million study to analyze the economic costs and benefits of acting against climate change”. The study will use macroeconomic modeling techniques to analyze possible outcomes, factoring in potential policy mechanisms, economic growth, investment, employment, poverty reduction, income distribution, and the need for improved health, energy, and food security. The commission hopes to uncover pathways to a resilient, resource-efficient, low-carbon economy. See http://newclimateeconomy.net/

3) Wilfred Laurier University in Waterloo, Ontario will launch a Centre for Sustainable Food Systems on November 14, to bring together researchers from the departments of Geography and Environmental Studies, Psychology, Biology, Global Studies, Religion and Culture as well as the School of Business and Economics. From their website at: https://www.wlu.ca/homepage.php?grp_id=13686: “Our vision is to conduct research that is both grounded in practice and theoretically informed, and to disseminate this co-generated knowledge through local, national and global networks to advance opportunities for and educate about more sustainable food systems.”