Sustainable Finance Newsletter - Complications from more fund democracy

Simpson Manufacturing

27/11/2024 16:17

By Ross Kerber
       Nov 27 (Reuters) - Everyone likes the idea of letting
fund investors direct their votes at corporate annual meetings,
but the changes also raise practical concerns for shareholder
communications.
    
My column this week explores this area. I've also included links
to stories about slowing flows to climate funds and Walmart's
move away from some DEI efforts.
     
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Corporate execs see complications from more fund democracy
Programs to let investors influence the votes cast by their
mutual funds at corporate annual meetings could complicate the
contests, company leaders worry, hardly the goal of reformers.
       
    BlackRock, Vanguard and State Street have each rolled out
capabilities for investors to shape the funds' votes on matters
like the election of directors or advisory votes on executive
pay.  
    
The programs offer an intriguing path for shareholders to shape
executives' decisions. But the CEO of a trade group for
corporate secretaries says there are communications challenges
that need to be worked out.
    
You can read more in my column this week by clicking here.
    
Company News 
Tesla's  TSLA.O  electric vehicles likely would not qualify for
California's new state tax credits under a proposal in the works
if President-elect Donald Trump scraps the federal tax credit
for EV purchases, Governor Gavin Newsom's office said.
    
Wells Fargo  WFC.N  is in the last stages of a process to pass
regulatory tests to lift a $1.95 trillion asset cap next year
after fixing problems from its fake accounts scandal, according
to three sources familiar with the situation.
    
Never mind "drill, baby, drill." U.S. oil and gas producers are
unlikely to radically increase production under President-elect
Donald Trump as companies remain focused on capital discipline,
a senior executive at Exxon Mobil  XOM.N  said.
    
On my radar  
Investors are on track to withdraw more money from global
climate funds than they deposit this year for the first time,
Morningstar Sustainalytics said, presenting an obstacle to
energy-transition efforts.  
    
As a money manager, Scott Bessent's years of inconsistent
performance contributed to a nearly 90% decline in his hedge
fund's assets. But Bessent has scored on perhaps his biggest bet
yet: President-elect Donald Trump, who named him Treasury
Secretary on Friday. My colleagues wrote up the flows and
returns as part of their review of Bessent's business. 
    
Edinburgh-based Stewart Investors identified six companies as
"leading the way to a more sustainable housing sector" including
Advanced Drainage Systems, WMS.N  Simpson Manufacturing  SSD.N 
and TopBuild. BLD.N 

 (Reporting by Ross Kerber in Boston; Editing by David Gregorio)
 ((ross.kerber@thomsonreuters.com; (617) 412 0093;))