The UK’s finance day was held on the 2nd of November during COP26, amidst ongoing protests from green activist groups concerned about ‘greenwashing’ - or misleading the public on how effective certain green initiatives actually are. 

In [his speech](https://www.gov.uk/government/speeches/cop26-finance-day-speech), Rishi Sunak made some multi-billion and trillion-dollar commitments, promising to put pressure on the private sector and pump more funding into developing countries. But perhaps his biggest unveiling was the promise for the UK to become the first ‘Net Zero Aligned Financial Centre’ - meaning that all financial institutions will now need to commit to achieving net-zero emissions. In addition, he called on private firms to "rewire the entire global financial system for net-zero." Easy-peasy, right?

But not everyone is convinced. In response to the [Net Zero Asset Managers](https://www.netzeroassetmanagers.org/net-zero-asset-managers-initiative-signatories-disclose-interim-targets-with-over-a-third-of-assets-managed-in-line-with-net-zero) report released in conjunction with Mr. Sunak’s speech, ShareAction’s senior manager Jeanne Martin [said](https://unclimatesummit.org/cop26-fact-check-usd-130-trillion-for-climate-finance-sounds-like-a-lot-but-does-it-add-up/), "it’s true that these financial institutions have all committed to reaching net-zero, but dig into the numbers and you see that they are not making this commitment for all of their assets.” 

What’s more, as the country bounces back from Covid-19 and the crippled economy it left behind, how exactly will public and private sectors find the money to fund climate change?

## Moving towards net zero

It will be expensive to bring our carbon emissions down to net zero, but doing that is still a lot cheaper than dealing with the fallout from climate change. To put it into context:

- Covid-19 has already reportedly cost the UK economy over [£300 billion](https://www.instituteforgovernment.org.uk/explainers/cost-coronavirus).

- The government's Climate Change Committee has estimated that getting the UK to net-zero would cost just over [one trillion](https://www.spectator.co.uk/article/the-true-cost-of-net-zero#:~:text=The%20government%20Climate%20Change%20Committee,year%20from%202030%20until%202050.) GBP over a span of 20 years, with similar figures confirmed by the [Office for Budget Responsibility](https://obr.uk/frr/fiscal-risks-report-july-2021/).  

- To do nothing at all would likely [double the cost](https://www.theguardian.com/environment/2021/jul/06/uks-climate-targets-will-cost-less-than-battling-covid-says-obr) to the economy. 

Everybody at COP26 is in agreement: preventative measures need to be taken now. The UN Special Envoy [report](https://2nsbq1gn1rl23zol93eyrccj-wpengine.netdna-ssl.com/wp-content/uploads/2020/11/COP26-Private-Finance-Hub-Strategy_Nov-2020v4.1.pdf) made it clear when they said, “every professional financial decision needs to take climate into account.”

And it all feels very optimistic, according to Rishi. Rishi Sunak made sure to highlight that:

- 80% of the world’s global economy is now committed to net zero or carbon neutrality.

- The UK is committing $100bn of funding to developing countries to help them achieve net zero, and £100m is promised to the [Taskforce on Access to Climate Finance](https://ukcop26.org/wp-content/uploads/2021/09/Taskforce-on-Access-to-Climate-Finance-Revised-Concept-Note.pdf).

- Pressure on the private sector would be enforced through ‘mandatory sustainability disclosures’, ‘proper’ climate risk surveillance, and ‘stronger’ global reporting standards, while being supplemented with new green bonds.

## What Rishi Sunak didn’t say 

When the UK announced that it would become the first 'Net Zero Aligned Financial Centre,' Mr. Sunak was quick to explain that firms would now have to publish 'clear and deliverable plans' to reach net zero. The COP26 report said that "every company, bank, insurer and investor will have to adjust their business models" to meet this. 

But if one were to compile a 'Wish List of Things Rishi Sunak Had Said on Financial Day,' it would include the word 'how?'

The financial sector is not particularly well known for keeping to the straight and narrow or ignoring loopholes. So how exactly the UK plans to hold companies accountable to all these new mandatory disclosures and targets remains unclear, especially in an era where it feels like we see [reports](https://www.carbonbrief.org/ccc-uk-will-miss-climate-goals-by-huge-margin-without-new-policies) almost every day of targets not met. Targets for the [Paris Agreement were put almost entirely on hold](https://www.reuters.com/article/us-climate-change-accord-idUSKBN2153EY) last year due to Covid-19. 

## How engagement and activism may add some hope

The UK government plans to put pressure on the financial sector. Still, for lasting change, investors must engage with companies in their portfolios to ensure better metrics are put in place to track and measure progress. That's where [activist investing can play a role](https://tulipshare.com/blog/what-is-activist-investing-or-shareholder-activism), as it provides an opportunity to engage with companies around key ESG initiatives to push for more sustainable practices.  

Using ESG metrics can be leveraged as a tool to help guide investment decisions for the financial sector and help in clarifying grey areas around a firm's [corporate responsibility](https://tulipshare.com/blog/ESG-and-shareholder-activism). 

And finally, activist investing platforms such as [Tulipshare](https://tulipshare.com) will seek to keep the pressure on by sharing information through their campaigns and using collective shares to ensure these campaigns are heeded.

Only by working together can we change market structures and redesign the way our financial institutions do business.


COP26 and Funding Climate Change: How Shareholder Activism May Bring Hope

Buying shares doesn’t just have to be about making money. Your investments can impact the environment and society.

Our shareholder activism is focused on advocating for change from within corporations. Find out how our users make a difference on Tulipshare. 

We think shareholder activism is an incredibly exciting way to drive change within corporations and maximize that impact, but what exactly is shareholder activism, how does it work and what are the best ways to get involved?

### What is shareholder activism?

Shareholder activism is when individuals take an active approach to investing. It typically requires an individual to buy a significant number of shares in a company or corporation with the aim of using their shareholder rights to create long-lasting change. Often seen as an activity reserved for the few at the top who are concerned more with profit than by ethical change, shareholder activism and activist investing can also be an expensive and time-consuming venture. 

However, it doesn’t have to be - shareholder activism can be a tool used by the retail or individual investor, especially when using platforms like Tulipshare’s. Our investment platform aims to enable groups of like-minded investors (or current shareholders) to come together and influence corporations, whether that be by proposing environmental or social changes.

### How does shareholder activism work?

Shareholder activism works by leveraging an individual or group’s shareholder stakes to apply pressure on corporations to enforce change. Ultimately, corporations are obligated to listen to shareholders, so it’s in their best interest to respond and engage. What makes Tulipshare’s approach unique is that it takes a campaign-first approach to investing - meaning the only stocks users can buy are where we’ve identified opportunities to apply better ESG practices at that company. Through shareholder activism, [Tulipshare](https://tulipshare.com/) leverages the shareholder rights of our investors to lobby for change from within these companies. These campaigns outline our intentions to engage with the company so that investors know that by investing with Tulipshare they’re taking an active approach to investing. Additionally, we encourage our users to exercise their shareholder rights across their investments outside of Tulipshare. We’ve created our blog with the intentions of educating investors globally around shareholder activism. 

### What are the best ways to get involved with shareholder activism?

Shareholder activism can be expensive and difficult to do on your own. But we believe, by coming together, it can be done more easily as we’re able to “scream louder collectively” and pool our resources.

As an activist platform that identifies opportunities for significant ethical change in corporations that are publicly listed on the [NYSE](https://www.nyse.com/index) and [NASDAQ](https://www.nasdaq.com/), Tulipshare could be the perfect choice for you. We’re all about working collectively to change the world, and we won’t settle for any less. All of our campaigns are rooted in a desire for authentic, long-lasting impact.

Fortunately, setting up a profile and getting started on Tulipshare is easy, providing you with the perfect entry point for your journey of becoming an active investor. Simply set up an account, complete the registration process, fund your wallet and start investing behind our various campaigns. 

### What are some prime examples of shareholder activism?

Having just launched our platform in July, Tulipshare has multiple campaigns live , which have the potential to support more ethical and sustainable practices at companies. [Our Apple campaign ](https://tulipshare.com/stocks/AAPL)is the perfect example, which focuses on Apple’s contribution to [growing amounts of electronic waste](https://time.com/5594380/world-electronic-waste-problem/). After setting up our campaign, Tulipshare has now acquired enough shares to submit a proposal at Apple’s AGM next year and are actively engaging with Apple’s IR team to try to come to a resolution. We are also planning to rapidly expand our campaigns, giving our investors all the more opportunity to engage on things that matter most to you.

Tulipshare makes it easier for individual investors to rally behind campaigns and fight to influence the way public companies are run. Interested in getting involved? Take a look through our campaigns here and read more about [how the Tulipshare process works](https://tulipshare.com/how-it-works). 



How Does Shareholder Activism Work? 

We're asking Nike to improve its supply chain. Check out the campaign.

The climate crisis has never been more in need of urgent action, and shareholders can evidently play a huge part in pressuring companies to cut their emissions. This was recently demonstrated at Chevron. Let’s take a look.

The climate crisis has never been in need of more urgent action, and shareholders can evidently play a huge part in pressuring companies to cut their emissions. This was recently demonstrated at Chevron. Let’s take a look.

Blog - How Shareholders are Changing the World pt. 4 | Tulipshare

By 2030, it’s estimated that Chevron’s emissions will count for 1.3% of all global emissions (since 2018). In fact, according to the data from the [Guardian](https://www.theguardian.com/environment/2019/oct/10/oil-firms-barrels-markets), just 13 companies will use up the world’s remaining carbon budget to keep global warming to 1.5C as per the Paris Agreement. 

Despite [reporting](https://www.chevron.com/-/media/shared-media/documents/2019-sustainabilty-performance-data.pdf) that they had contributed 697 million tonnes of carbon dioxide equivalent in 2019, Chevron [did not have](https://www.reuters.com/business/sustainable-business/chevron-commits-net-zero-emissions-by-2050-2021-10-11/) a net zero plan in place until 2021. 

And that was all down to Dutch activist group [Follow This](https://www.follow-this.org/), who presented Chevron with a shareholder proposal asking them to reduce their greenhouse gas emissions. The board of course recommended that shareholders not vote in favour of Follow This’ proposal, saying “Chevronʼs actions [..] are appropriate.” ([item 4, page 82](https://follow-this.us13.list-manage.com/track/click?u=34db8da04bab7a1f942ca1a7d&id=7610a4e4d2&e=2b69223182)). But shareholders rebelled, with 61% of them ignoring the board’s advice and backing the resolution anyways. 

## About the proposal

The [proposal](https://www.follow-this.org/wp-content/uploads/2021/01/US-2021-climate-resolution-Chevron.pdf) put forward by Follow This was unique in that it didn’t just ask Chevron to cut its own emissions, it asked for them to also slash the footprint coming from its oil and gas-burning customers through a Scope 3 target. 

Follow This commented, [saying](https://www.follow-this.org/chevron-responds-to-follow-this-climate-resolution-with-disappointing-target/):  “It is a crucial step to include Scope 3, because product emissions are the elephant in the room (up to 90% of emissions). Until now, Chevron refused to discuss them.” 

The proposal also argued that, “as shareholders, we understand this support to be part of our fiduciary duty to protect all assets in the global economy from devastating climate change. Climate-related risks are a source of financial risk, and therefore limiting global warming is essential to risk management and responsible stewardship of the economy.”

## Putting it into context

Shareholders are, now more than ever, pulling Big Oil’s climate strategy into sharp focus and with good reason. Falling behind now would be detrimental to oil and gas companies. The future consequences of climate change are rapidly approaching, and it’s becoming increasingly clear that [offsetting isn’t enough](https://www.greenpeace.org.uk/news/the-biggest-problem-with-carbon-offsetting-is-that-it-doesnt-really-work/) and we have to put a stop to [fossil fuel expansion programs](https://www.reutersevents.com/sustainability/esg-watch-iea-report-calling-end-new-oil-and-gas-puts-wind-sails-investors).

In the same year that Follow This won majority backing at Chevron, Engine No. 1 also [unseated](https://tulipshare.com/blog/how-shareholders-are-changing-the-world-2) board members at ExxonMobil and a court case in the Netherlands ordered Shell to decrease emissions by 45% by 2030 - a case during which Roger Cox, the lawyer of Friends of the Earth, stated, “Big Oil can no longer dismiss the crucial role it has to play in the fight against climate change, according to the judge.”

In 2022 shareholders put forward a [record number](https://www.climateaction100.org/news/as-2022-proxy-season-begins-record-numbers-of-climate-resolutions-and-agreements-bode-well-for-action/) of climate change-related proposals. Despite some [push back from institutional investors](https://www.ft.com/content/4a538e2c-d4bb-4099-8f15-a28d0fefcea2), specifically a reluctance to support divestment initiatives, the financial world is now unable to deny its huge task ahead in changing its role in climate change.


How Shareholders Pressured Chevron Towards a Climate Transition

With melting ice sheets, warming oceans and a drastic rise in the global temperature, the climate change clock is undoubtedly ticking. 

The promises on climate change COP26 made need to be priority actions in the face of global warming. Find out how activist investing could help.

**With [melting ice sheets](https://www.worldwildlife.org/pages/six-ways-loss-of-arctic-ice-impacts-everyone), [warming oceans](https://www.epa.gov/climate-indicators/oceans#:~:text=Why%20does%20it%20matter%3F,climate%20patterns%20around%20the%20world) and a drastic rise in the global temperature, the [climate change clock](https://www.inenco.com/insight/blog/climate-clock-is-ticking-as-political-delays-continue/) is undoubtedly ticking. With every minute that passes, the chances of turning things around diminish and with it, the darker the future becomes. [COP26](https://ukcop26.org/) offered a ray of hope in an otherwise gloomy forecast, but how do we turn those promises into real, actionable change? To get things started, let’s begin with some of the basics about the COP26 conference in Glasgow a few months ago.**

### What was COP26?

The 2021 United Nations Climate Change Conference (otherwise known as COP26) was a global United Nations summit held in Glasgow this year. COP26 offered world leaders the chance to gather and update their agreements from 2015 in fighting climate change. Over two weeks, speeches and deep negotiations occurred, leading to a last-minute deal agreed upon by an array of nations across the planet. Whether the agreements were enough to tackle the momentous task of tackling a warming planet is up for debate. 

### What were the promises made at COP26?

World leaders went into COP26 with [four goals](https://ukcop26.org/cop26-goals/):

- Secure global net-zero by 2050 and keep 1.5 degrees within grasp

- Adapt to shield vulnerable communities and ecosystems

- Mobilise developed countries and financial institutions into providing at least $100bn in climate finance per year

- Improve and solidify collective, united and consistent action for the future

At the end of the conference, various agreements were put into place that aligned with these four goals. One of which was the [submitted climate plans](https://www.climatewatchdata.org/2020-ndc-tracker) from 151 countries to slash emissions by 2030 and keep 1.5 degrees within realistic reach. Also, while the [previous climate finance goal](https://commonslibrary.parliament.uk/cop26-delivering-on-100-billion-climate-finance/#:~:text=It's%20generally%20agreed%20that%20an,nations%20have%20in%20developed%20countries.) of $100 billion was not reached in 2020, [developed countries agreed](https://www.gov.uk/government/news/uk-cop26-presidency-publishes-climate-finance-delivery-plan-led-by-german-state-secretary-flasbarth-and-canadas-minister-wilkinson-ahead-of-cop26) to a robust process to develop new climate targets past 2025. On top of these promises, [40 countries have committed](https://www.bbc.co.uk/news/science-environment-59159018#:~:text=More%20than%2040%20countries%20have,at%20the%20COP26%20climate%20summit.&text=Such%20projects%20burn%20fossil%20fuels,biggest%20contributor%20to%20climate%20change.) to phasing out coal, more than [40 world leaders agreed](https://www.bbc.co.uk/news/science-environment-59138622) to advance clean technology around the world by 2030 and [100 countries have committed](https://news.sky.com/story/cop26-more-than-100-countries-commit-to-ending-and-reversing-deforestation-by-2030-12457327) to stopping deforestation by 2030.

### How can we turn those promises into success?

Talking is easy, but the real, direct change we desperately need isn’t. COP26 was unquestionably a start, but holding those accountable for staying on target is a crucial part of turning those promises into successes. Activism, individual responsibility and voting in the right way all play a part in holding those in power to account, but another essential element of making COP26 a success is corporate responsibility.

[Studies have shown](https://www.theguardian.com/sustainable-business/2017/jul/10/100-fossil-fuel-companies-investors-responsible-71-global-emissions-cdp-study-climate-change) that just 100 companies are responsible for 71% of global emissions - a remarkable number and one that shouldn’t be forgotten as corporations continue to greenwash. In our eyes, those numbers don’t change just through individual action, but collective action. That’s why we think activist investing is one of the ways forward.

### Why activist investing matters

Recycling our waste and doing our best to reduce our carbon footprint clearly has a positive impact, but that doesn’t mean we can afford to stop acting collectively. Pooling together and making our voices heard is vital if the promises at COP26 are to be a success. On top of holding politicians to account with consistent activism and thoughtful voting, activist investing is another way to force crucial change in various corporations and businesses.

Take our [Coca-Cola campaign](https://tulipshare.com/stocks/KO), for example. Coca-Cola - one of the world’s [leading contributors](https://www.theguardian.com/environment/2020/dec/07/coca-cola-pepsi-and-nestle-named-top-plastic-polluters-for-third-year-in-a-row) to plastic waste and litter. Coca-Cola’s current target is to use at least 50% recycled material in its packaging by 2030, but we don’t think that’s good enough. Our campaign recommends that Coca-Cola change its goal to use 100% recycled material in its packaging by 2030. 

By buying shares through Tulipshare with other like-minded investors, we can advocate for this change collectively and push for change from the inside. We already have $9,818 invested in the campaign with 2,500+ users interested. This is just one example of the power of activist investing, which can help to bring about direct change in even the biggest corporations.

If you’re interested in doing your bit in the fight against climate change, activist investing is a unique way to bring about much-needed change. Take a look through the [Tulipshare site](https://tulipshare.com/) to learn more about activist investing and create an account today!





How to Turn the Promises Made at COP26 Into a Success

We're trying to end child labour in cocoa production

Shareholder activists are making some big changes in the climate change department. This week we’re looking at what happened at ExxonMobil.

Blog - How Shareholders Are Changing The World pt. 2 | Tulipshare

It doesn’t take a climate change expert to [see the link](https://www.clientearth.org/latest/latest-updates/stories/fossil-fuels-and-climate-change-the-facts/#:~:text=What%20is%20the%20link%20between,temperature%20has%20increased%20by%201C.) between ExxonMobil’s business and some of the calamitous changes we’re seeing to our planet. And a lot of big oil companies are making efforts to pave the way for a lower-carbon future. But many feel these changes aren’t happening fast enough, and pressure is starting to mount from all sides for big oil companies to take more drastic actions. 

To stop our reliance on oil, the global economy will need a drastic overhaul with a complete [focus on renewable energy](https://www.un.org/en/climatechange/raising-ambition/renewable-energy). And oil companies can either future-proof themselves to accommodate this change, or risk wreaking havoc on their profitability. And it’s for this reason that shareholders have begun to intervene, starting with ExxonMobil.

## What happened at ExxonMobil

A hedge fund still in its infancy (less than 6 months old), and which owned only 0.02% of stake at ExxonMobil, started an activist campaign to ‘re-energize’ the company - expressing concerns over languishing returns and a failure to keep up in a decarbonising world.  Their solution? To replace three members of the board of directors with more forward-thinking, climate change experts in order to push ExxonMobil to reduce its carbon footprint faster. 

It was a bold campaign which grabbed the attention of the entire financial world, not least because it was actually successful.  

The New York Times later reported, “The tiny firm wouldn’t have had a chance were it not for an unusual twist: the support of some of Exxon’s biggest institutional investors. BlackRock, Vanguard and State Street voted against Exxon’s leadership and gave [Engine No. 1](https://www.nytimes.com/2021/05/27/business/dealbook/exxon-mobil-engine-no-1.html) powerful support.”

## What can we learn from this success?

Engine No. 1 was able to demonstrate that what’s good for the planet is also good for the company’s profitability. And this is the message that the new generation of shareholder activists have run with in recent years. Without a planet, what use are profits anyways? Without a healthy community, who will be able to buy goods and services? 

Gone are the days when focusing on improving ESG metrics was considered a distraction from making profits. Today’s shareholders understand the value of leading the way in ESG, so that profits are made without being at the expense of the planet and the people who helped make those profits possible in the first place.

## More examples of shareholder victories

Next week we’ll be taking a look at how shareholders came up with a plan to phase out coal.



How Shareholders Placed Climate Experts on ExxonMobil's Board to Reduce Carbon Footprint

"What is really important is structural change - and that can only be achieved through long-term thinking and long-term investments and regulations." - Joeri Rogelj

"As an individual, there are things we can do in our own lives, but they won't be sufficient to rise up to the challenge of halting climate change. What is really important is structural change - and that can only be achieved through long-term thinking and long-term investments and regulations."

This is a quote from Joeri Rogelj, one of the authors of the UN Intergovernmental Panel on Climate Change report.  It's from a CNN Business article released earlier this year titled '[Meaningful ways individuals can put pressure on corporations to solve the climate crisis](https://edition.cnn.com/2021/08/10/business/what-can-you-do-about-climate-change/index.html).'


Enter [Tulipshare](https://www.tulipshare.com), a new [activist investment](https://tulipshare.com/blog/what-is-activist-investing-or-shareholder-activism) platform, aiming to change a system that has limited the voices of many - leaving the decisions up to a few. Here are (at least) three ways Tulipshare is unique to other activist investors:

**1) Crowdfunding approach**

When you look at some of the [world's top activist investors](https://www.investopedia.com/top-10-activist-investors-in-the-us-5083258), you see a lot of hedge fund managers with philanthropic interests, such as [Paul Singer](https://www.newyorker.com/magazine/2018/08/27/paul-singer-doomsday-investor), or trailblazing '[corporate raiders](https://www.investopedia.com/terms/c/corporate-raider.asp),' like [Carl Ichan](https://www.forbes.com/profile/carl-icahn/?sh=6a04b0b135eb). Activist investing has been around for decades, but it is still dominated by individuals with extremely high net worths.

Shouldn't activism also give a voice to the 'everyman,' I hear you say? 

Tulipshare certainly thinks so. With its platform, you don't have to be rich - in fact; you can invest as little as £1 if you want. The Tulipshare platform uses a crowdfunding approach to try to gain significant shares in a company collectively, meaning - as an investor - it's your money that counts. 

With Tulipshare, the focus is on impact over returns. Tulipshare believes impact investment strategies can prolong the health and happiness of the planet, the people who live on it, and therefore the financial markets. 

And it's not just Tulipshare that thinks so; there is evidence that suggests [a majority of investment professionals agree ](https://www.mckinsey.com/business-functions/sustainability/our-insights/the-esg-premium-new-perspectives-on-value-and-performance)that ESG programs contribute to shareholder value. 

With this approach, the people have the power, not just the wealthy few. And money isn't the only way to wield that power...

**2) You can suggest campaigns**

In a recent [discussion](https://unfccc-cop26.streamworld.de/webcast/financial-times-which-investment-approach-has-th-2) at COP26 in Glasgow, Vinay Shandal talked about the enormous effort it takes to take on the titans of business, saying, "the homework one has to do to present an alternative path for a company is harder than getting the ultimate buy-in."

But it can be done, and indeed it has been. The impact investment firm [Engine No.1](https://engine1.com/) is proof. [Recently Engine No.1 shook the financial world](https://www.forbes.com/sites/stuartrlevine/2021/08/23/dont-get-left-behind-on-esg/?source=bloomberg&sh=271e140e199a) by taking on (and winning) three directors' seats in ExxonMobile, effectively forcing them to address their lack of sufficient environmental initiatives. Chris James from Engine No.1 [responded](https://unfccc-cop26.streamworld.de/webcast/financial-times-which-investment-approach-has-th-2) to Vinay Shandal by saying their effort was proof that "democracy in the capital markets worked." No doubt, it has provided a framework for others to make changes too.

Tulipshare aims to take this framework one step further and use the platform to amplify the people's voice. You - yes, you - can suggest a campaign, and the hardworking Tulipshare team will do all the homework to test its viability. 

Who knows, one day, it could be brought to vote at a shareholder meeting.

Yes, it's hard work to take down the giants - especially if you're just the little guy - but this way, you won't be going at it alone.

**3) Focusing on the specifics**

In the financial world, activist investments have primarily been about finding ways to increase shareholder value, whether through tackling mismanagement or resorting to a hostile takeover (where a company gets bought out without its permission). 

One of the world's top activist investors, [Nelson Peltz once took a $3.5 billion stake in Proctor & Gamble (P&G)](https://www.cnbc.com/2017/10/06/billionaire-activist-peltz-my-proxy-fight-with-procter-gamble-will-be-close.html), attempting to get a seat on their board of directors simply because he felt the company had "lost its soul."

It resulted in a [proxy fight](https://www.investopedia.com/terms/p/proxyfight.asp), with P&G paying $100m to try and fight off Peltz, which Peltz called ["the dumbest thing" he'd "ever been involved in."](https://dealbreaker.com/2017/10/nelson-peltz-rejects-any-outcome-that-doesnt-have-nelson-peltz-sitting-on-pg-board)

It's a significant effort to submit a shareholder proposal; lots of research, support, capital, and an incredible amount of fighting spirit.  Not to mention you need to own enough shares in the company to do any of this. However, at Tulipshare, we feel this work is needed and believe there is value in sustainability. Corporate responsibility is essential to get results and influence the capital markets and promote a more sustainable future.

They say that money makes the world go around, but they never specified *whose* money. Tulipshare's unique platform and strategy says that - this time -  *your* money can make the difference. 


Three Ways Tulipshare is Changing The World of Activism Investing

Join us in asking Paypal to end financial discrimination!

In early 2021, Ben & Jerry’s parent company, Unilever, promised to ensure that every person in its supply chain is earning a living wage by 2030. Here's how Ben & Jerry's is setting the standard within the industry. 

Read more to learn how Ben & Jerry is setting the standards for cocoa supply chain. 

Blog - Tulipshare's Guide to Good: Cocoa Supply Chains | Tulipshare

**Where do supply chains go wrong?**

West African cacao producers have long struggled with inadequate pay, notably in nations like Ghana and the Ivory Coast. This is caused by a number of factors, such as a lack of government support, a lack of resources and credit access, and a lack of negotiating power in the global market. Additionally, the increased cocoa production brought about by the increased demand for chocolate has resulted in an excess of the bean and a drop in price. As a result, many farmers are compelled to rely on other revenue sources because they are unable to make a decent wage from the cultivation of cocoa. 

According to [Forbes](https://www.forbes.com/sites/shaynaharris/2020/11/17/ice-cream-giant-ben--jerrys-commits-to-paying-cocoa-farmers-a-living-income-in-west-africa/), over 70% of the world's cocoa production comes from West Africa, with Côte d'Ivoire leading the way as the greatest producer. The 600,000 cocoa farmers in Côte d'Ivoire, however, live in a state of abject poverty that is made worse by volatile commodity prices, climatic fluctuations, and a virus that is reducing the productivity of cocoa trees.

The farmers at the start of the cocoa supply chain frequently face the most difficult obstacles. They are usually smallholder farmers who are unable to secure reasonable pricing for their cocoa because of their weak negotiating position in the global market. Many of them are unable to access the resources and services that would enable them to better their standard of living because they are mired in poverty. It is [reported](https://www.benjerry.com/values/how-we-do-business/cocoa-commitment) that farmers, often farming small plots of land, make just $0.78 per day from their crops, falling well below the $2.16 to $2.49 per person per day living income needed to survive in Ghana and Côte d’Ivoire.

Additionally, child labour is a significant problem in the cocoa sector, notably in Ghana and Côte d’Ivoire, where it is believed that over [two million children](https://www.nasdaq.com/articles/child-labour-rising-in-west-africa-cocoa-farms-despite-efforts-report-2020-10-19) work on cocoa farms to help their families make ends meet. 

**What makes Ben & Jerry’s so sweet?**

Ben & Jerry’s has set themselves apart from other companies by being one of the brands that actively advocates for farmers’ living wages. By building a relationship with Fairtrade and their [Living Income Accelerator](https://www.benjerry.com/values/how-we-do-business/cocoa-commitment) programme, Ben & Jerry’s have been actively working towards a more just future for the cocoa farmers in their network. And now they are moving forward with our aim of preventing modern slavery in the chocolate industry and supporting farmers as they work toward a living income by collaborating with Tony's Chocolonely's Open Chain. In fact, Ben & Jerry made [history](https://www.benjerry.com/values/how-we-do-business/cocoa-commitment) in 2020 as they were the first ice cream company to pay a living wage for the cocoa that went into their base mix for chocolate ice cream.

**What makes Ben & Jerry’s so sweet?**

Five key ingredients—cocoa, bananas, coffee, vanilla, and sugar—were sourced thanks to a long-standing collaboration between Fairtrade and Ben & Jerry's. For farmers and workers in poor countries, Fairtrade means better prices, respectable working conditions, local sustainability, and equitable terms of trade. 

As a result, whenever you see the [Fairtrade Mark](https://www.fairtrade.org.uk/media-centre/blog/how-fairtrade-and-ben-jerrys-are-working-towards-a-living-income-for-cocoa-farmers/) on the side of a tub of Ben & Jerry's ice cream, you can be assured that the farmers who grew the ingredients were paid the Fairtrade Price and Premium, helping them develop better environmental practices and climate adaptation strategies.

**How does all this impact cacao farmers in West Africa?**

Working with Fairtrade has given small-scale farmers who grow essential ingredients like cocoa millions of dollars in Fairtrade Premiums. Between 1% and 2% of all Fairtrade Premiums sold worldwide are from Ben & Jerry's. That premium has a significant impact. A cocoa [cooperative](https://www.fairtrade.org.uk/media-centre/blog/how-fairtrade-and-ben-jerrys-are-working-towards-a-living-income-for-cocoa-farmers/) in Côte d'Ivoire, who partners with Ben & Jerrys, was able to use these Fairtrade Premium to construct a new medical facility, hire a nurse, set up solar panels, and procure a water pump. Ben & Jerry's has now agreed to pay higher pricing, increasing the annual income of 5,000 farmers in Côte d'Ivoire by $600,000. This means each farmer will earn an extra $120 in income per year, divided equally.

Ben & Jerry's Chief of Social Mission, Dave Rapaport, has high [hopes](https://www.forbes.com/sites/shaynaharris/2020/11/17/ice-cream-giant-ben--jerrys-commits-to-paying-cocoa-farmers-a-living-income-in-west-africa/) for the future of Fairtrade, even though the price hike won't immediately close the gap between minimum wages and a living income. According to him, Ben & Jerry's involvement with Fairtrade is an essential component of a bigger strategy that extends beyond Côte d'Ivoire. 


Tulipshare’s Guide to Good: Cocoa Supply Chains

When it comes to saying the right things, corporations seem to be on track as far as climate change pledges are concerned. 

The likes of BlackRock, Netflix, and Costco have all made [encouraging announcements](https://www.nytimes.com/2021/02/22/business/energy-environment/corporations-climate-change.html) about altering their practice to serve the planet better, but have failed to make any tangible strides towards more climate-friendly company policies. In fact, [a recent study](https://economictimes.indiatimes.com/news/international/business/most-major-companies-failing-climate-targets-study/articleshow/82193058.cms) found that fewer than one in four of the world’s largest companies are on course to achieve basic climate change targets. 

But given the alarming need for large corporations to take more responsibility to fight climate change, why are they simply not doing enough? 

## There is no requirement for companies to disclose key climate information. 

The practices of many of the world’s largest polluting industries - oil & gas, tech, & textiles, for instance - are well known. Yet currently there’s no global requirement for the companies within these sectors to disclose key climate information that refers to the impact their businesses are having on the environment, though countries like [the UK are taking steps to change this](https://www.icas.com/landing/sustainability/non-financial-reporting/climate-change-reporting-to-be-mandatory-for-largest-uk-entities). These steps will mean that, from April 2022, entities in scope will be required to disclose reports on their climate-related risks and opportunities. Even so, there is such inconsistency in terms of corporate pledges that makes it seemingly impossible to benchmark one company against the next. 

Oil companies including Shell, BP, Total, and Equinor have all [unrealistically pledged](https://www.theguardian.com/environment/2021/jul/26/climate-crisis-green-light) to reach “net zero” by 2050, alongside stopping short of committing to halting fossil fuel exploration. While this might sound like progress to those on the outside, it pales into insignificance when compared to what Danish oil firm Orsted has already achieved. In 2017, [they sold their oil and gas business](https://www.greentechmedia.com/articles/read/rsted-sells-lng-unit-says-its-natural-gas-business-is-going-nowhere) and went on to install more than one-quarter of the world’s offshore wind capacity - real climate action.

Ultimately, developing a framework around corporate climate pledges is a vital next step, but it’s not going to be easy to achieve. 

## Long-term goals have usurped short-term goals. 

Something that corporations have fallen into the habit of doing is pledging ambitious long-term goals to help save the planet. Whether it’s [GM’s announcement to be carbon neutral by 2040](https://media.gm.com/media/us/en/gm/home.detail.html/content/Pages/news/us/en/2021/jan/0128-carbon.html), or [Google’s promise](https://www.bbc.com/news/technology-54141899) to be powered exclusively by renewable energy by 2030, there is very little immediacy when it comes to articulating the steps that these corporations will take to achieve their targets. 

When you think about it, it’s much easier for a board of directors to commit to a pledge that is decades away from coming to fruition. There’s no immediate requirement for them to change their modus operandi, and they can very much continue with ‘business as usual’ unless the right level of pressure is put on their unsustainable business practices.  In fact, [recent research](https://www.ft.com/content/ae78c05a-0481-4774-8f9b-d3f02e4f2c6f) has shown that the ESG sector is filled with greenwashing.

Unless corporations shift their targets to the medium and short-term, it’s unclear whether they’re actually doing anything about their current climate indiscretions or whether it’s just a case of saying the right things to appease their clients and partners. 

## How can we make corporations do more to fight climate change? 

A revolutionary way of forcing corporations to adopt more climate-friendly policies and to change their polluting behaviour is through activist investing. At [Tulipshare](https://tulipshare.com/), we harness the collective power of individual investors and work to leverage shareholder rights. As a result, we can advocate on your behalf to bring about real change in some of the world’s largest corporations. 

We believe that activist investing is one of the most effective ways of bringing about positive change in some of the world’s biggest polluting companies, [evidenced](https://corpgov.law.harvard.edu/2020/08/01/2020-activist-investor-report/) by many high-profile campaigns launched in recent years. 

Ultimately, if we’re going to save our planet, we need to put pressure on corporations to change their actions. After all, there’s no planet B. 


Why Are Corporations Not Doing Enough to Fight Climate Change? 

Check out our we're demanding Apple for fair and accessible repair rights. 

Shareholders collectively own a company, but the day-to-day running of any corporation is up to the board of directors. Here's how to utilise your position and influence change in the boardroom. 

Read here to learn how to utilise your position and influence change in the boardroom. 

## What is a shareholder? 

A shareholder is an individual or entity that owns stock in a company. When you buy stock, you become a part-owner of the company in question, and you will benefit from its success when things are going well financially. When buying stocks, you’re also afforded certain rights. After all, you are a joint owner of the company, so your voice needs to be heard. While most shareholders are aware that they can vote in the company’s AGM, there are a number of other rights that you need to consider, as we explain below. 

## An overview of shareholder rights 

Every company may have its own shareholder perks, but the following rights apply to most companies: 

### Voting power 

Each year at a company’s annual general meeting, shareholders can cast a vote in person, or most commonly, by proxy. You can vote on a range of issues that may lead to fundamental changes in the company. 

### The right to sue 

If a company commits a wrongful act that affects the shareholders (such as overstating earnings in an attempt to downplay financial difficulties), shareholders can file a class-action lawsuit against the company. 

### Ownership in a portion of the company 

All shareholders have a claim on a portion of the assets owned by a company. When these assets generate profits, shareholders see a return on the value of their shares. 

### Transfer of ownership 

Shareholders are also permitted to trade their stock on an exchange. Because stocks are so liquid, investors can transfer their money to other places as soon as the markets are open. 

### Dividends 

Some shareholders are entitled to dividend payments that are typically paid out quarterly or annually. You can either reinvest your dividends back into the company or receive a payment in cash. 

### Access to corporate records 

As a shareholder, you can inspect the corporate records of the companies that you invest in, as well as other documents that include minutes held at corporate meetings. This allows you to see what is actually taking place in the company that you have shares in. 

## Leveraging shareholder rights 

When you invest in company stocks with Tulipshare, we leverage your shareholder rights to influence change from within unethical businesses. We practice activist investing, which encourages some of the world’s most immoral corporations to agree to changes that improve their ethics. Our [campaigns](https://www.tulipshare.com/campaigns) seek change for [people](https://www.tulipshare.com/categories/people) and the [planet](https://www.tulipshare.com/campaigns/JNJ), and we utilise the collective power of shareholder rights to get our voices heard. 

For instance, as of August 2021, we secured enough shares to submit a proposal to [Apple](https://www.tulipshare.com/campaigns/AAPL) to demand that the company adopts fair and accessible right to repair policies. By empowering investors in our community, we will continue to leverage your shareholder rights to bring about positive changes in the world around us. [Find out more](https://www.tulipshare.com/how-it-works) about how activist investing works and consider how your investments can make a difference today.



What Are Your Rights As A Shareholder?

Find out more about our JPMorgan campaign

Climate justice is about recognising that the changing climate affects everybody differently. But, more than that, it’s about enabling marginalised nations and communities to influence climate policy through direct action. 

What is Climate Justice? Find out on Tulipshare's blog.

Blog - What is Climate Justice? | Tulipshare

## The Climate Justice movement 

According to Chair of the [Elders](https://theelders.org/programmes/climate-change) and Former Irish President [Mary Robinson](https://www.un.org/sustainabledevelopment/blog/2019/05/climate-justice/), climate justice “insists on a shift from a discourse on greenhouse gases and melting ice caps into a civil rights movement with the people and communities most vulnerable to climate impacts at its heart.” In other words, we need to shift from a conversation about climate change to action that considers the needs and aspirations of those disproportionately affected. 

The movement itself was born out of the realisation that the historical responsibility for climate change has been solely at the discretion of wealthy nations. However, the effects of human-induced climate change disproportionately influence the lives of the poorest people on the planet. World Bank [research](https://www.imf.org/Publications/fandd/issues/2021/09/climate-change-and-inequality-guivarch-mejean-taconet) highlights this fact, suggesting that anywhere between 68 to 135 million people could be pushed into poverty by 2030 as a direct result of climate change. 

The Climate Justice movement seeks to enable poorer nations and underrepresented groups to have a seat at the table. Recognising that climate change can have contrasting economic, social, and public health impacts on underprivileged populations, Climate Justice campaigners hope to change the narrative on one of the most significant global issues of our generation. 

## Why is Climate Justice important? 

IMF [research](https://link.springer.com/article/10.1007/s10584-019-02637-w) indicates that climate change could potentially “reverse the gains of the past few decades and cause inequality between countries to rise again.” The disparity between nations often leads to conflict, insecurity, and displacement, threatening to destabilise global peace. What’s more, inequality felt within a country can lead to separatism and civil strife, causing significant domestic challenges that further exacerbate inequality.

The need for equal representation at the climate change negotiating table has never been more pronounced than it is now. Mitigating climate change and its multitude of adverse impacts is crucial to sustainably improving living standards worldwide. For this reason, the Climate Justice movement is vital, as it empowers those who have been previously underrepresented to influence global policy on the changing climate. Some of the key tenets of Climate Justice include: 

- Recognising that key groups are affected in different ways by climate change, and there’s not a one-size-fits-all solution. 
- Climate change can exacerbate inequitable social and economic conditions within nations, so a broad representation of peoples is essential. 
- Collaboration is crucial for building climate justice solutions, with such a wide variety of groups and panels working towards net-zero initiatives in different ways.

Essentially, the Climate Justice movement is a step in the right direction when it comes to leveling the playing field. But there’s still a long way to go if marginalised populations are to actively influence climate policies in the future. 

## What can you do? 

At Tulipshare, we care a great deal about the world and believe in planet over profit. That’s why we have launched several [activist investing](https://tulipshare.com/blog/how-activist-investing-can-make-a-difference) campaigns that seek to collectivise investors and address some of the issues associated with climate change. For instance, we’re aiming to engage with [JPMorgan](https://tulipshare.com/stocks/JPM) to strengthen its commitment to ending all fossil fuel investments and recommend that [Coca-Cola](https://www.tulipshare.com/stocks/KO) opt to use 100% of recycled material in their packaging by 2030.

By identifying opportunities for ethical change at public companies, we leverage the collective shares of our investor community to influence decision making at some of the world’s largest companies. We invite you to invest in the future of our planet and join the broad Climate Justice movement, to ensure that the poorest and least represented communities on the planet are no longer disproportionately affected by climate change.


What is Climate Justice? 

Check out our campaign to end child labour in cocoa production

This month we are looking at some of the ways shareholder activists have changed the world.

Blog - How Shareholders Are Changing The World | Tulipshare

In light of our recent [Johnson & Johnson campaign ](https://tulipshare.com/blog/JNJ-stop-sale-of-talc-based-baby-powder-after-calls-from-investors?utm_source=organic&utm_medium=blog&utm_campaign=shareholderschangetheworld1)success, this month seemed like a good time to look at some of the other shareholder activism wins throughout history. 

Throughout the month, we’ll focus on shareholders who’ve unseated problematic members of boards, gotten huge banks and big oil firms to commit to phasing out coal and cutting emissions, and pushed big airport chains to become 100% energy-self sufficient. 

**This week, we’re looking at sexual harassment in the workplace.**

Recently we spoke to Female Invest on [our podcast](https://thetuilpshareactivistinvestor.transistor.fm/episodes/what-women-want-when-it-comes-to-money) about ways that women can use shareholding to change the world around them, and one example that came up was Arjuna Capital’s proposal at Microsoft to look into executive-level workplace sexual harassment.

## The issue at Microsoft

In 2018 [it emerged](https://www.reuters.com/article/us-microsoft-women-idUSKCN1GP077) that 238 Microsoft employees had filed internal complaints of gender discrimination or sexual harassment in their workplace, which culminated in a class action lawsuit. During the legal proceedings, Microsoft-employees gave evidence to support their [claim](https://storage.courtlistener.com/recap/gov.uscourts.wawd.220713/gov.uscourts.wawd.220713.381.0.pdf) that Microsoft's corporate culture is “systematically hostile to women.”

A couple of years later, allegations of Bill Gates’ long-term affair with a high-level Microsoft executive [emerged](https://nypost.com/2021/05/16/bill-gates-allegedly-had-affair-with-microsoft-employee/), which the board of directors had been aware of since 2019. Further reports of Mr. Gates ‘[pursuing](https://nypost.com/2021/05/16/bill-gates-asked-out-several-women-in-his-office-report/)’ other female employees later surfaced. Bill Gates subsequently resigned from the board of directors, citing a desire to focus on his philanthropy.

In 2019 the company’s senior leadership team was also [made aware](https://qz.com/1587477/microsoft-investigating-sexual-harassment-claims-overlooked-by-hr/) of a chain of emails documenting around 90-pages worth of communication around the topic of sexual harassment and discrimination between female employees at Microsoft. 

One female employee described how she was threatened on a work trip by an employee of a partner company who said he would kill her if she didn’t perform an implied sexual act. She wrote. “My male manager told me that ‘it sounded like he was just flirting’ and I should ‘get over it’. HR basically said that since there was no evidence, and this man worked for a partner company and not Microsoft, there was nothing they could do.”

## The solution proposed by shareholders

A proposal fronted by Natasha Lamb of Arjuna Capital, an impact investment firm that owned roughly $20billion of Microsoft shares at the time of filing, set out to push the company to issue a public report on the effectiveness of its sexual harassment policies.

The proposal was put forward to vote at the company’s AGM in January 2022, with Microsoft urging other shareholders not to support it. Much to everyone’s shock - including Natasha Lamb’s - the proposal was passed with a majority vote of 61% and Microsoft issued a subsequent statement saying that it planned to review its policies and issue a public report in the spring, with a commitment to hire an independent law-firm to look into the high-level cases.

Natasha Lamb later reflected on the success, [saying](https://www.cnbc.com/2022/01/16/microsoft-investor-lamb-sees-change-after-harassment-report-vote.html), “it was clear to us that we needed to bring this issue to the company and bring it to other investors, so that it wasn’t tarnishing the brand. With Microsoft, it’s really about attracting and retaining talent. It’s such a competitive landscape. When you have these kinds of blemishes on your record and you’re not addressing them proactively and transparently, it can be a barrier to attracting top talent.”

## Further victories

Next week we’ll be looking at climate activists who used activist investing to install three of their own climate-friendly nominees into the ExxonMobil board of directors.


How Shareholders Addressed Sexual Harassment Issues at Microsoft

Check out the shareholder proposal we filed at Johnson & Johnson

If you invest in any Tulipshare campaigns, then around this time of year you might start to get emails from us letting you know that we’ve filed a ‘shareholder proposal’ regarding the campaigns. But what is a shareholder proposal? We’re here to explain.

What is a Shareholder Proposal - Blog | Tulipshare

If you invest in any Tulipshare campaigns, then around this time of year you might start to get emails from us letting you know that we’ve filed a ‘shareholder proposal’ regarding the campaigns. But what is a shareholder proposal? We’re here to explain.

The ultimate goal of a shareholder proposal is to influence company decision-making regarding its policies and actions.  

Filing a shareholder proposal often leads to dialogue between a shareholder and a company, to address the concerns raised in the proposal.  Sometimes the shareholder’s objectives are reached through these conversations alone, but usually the proposal is put to vote at the company’s Annual General Meeting (AGM), where other shareholders can cast their ballot. 

A shareholder proposal needs to get a majority backing from other shareholders  in order to pass.  However, it’s worth mentioning that a successful shareholder proposal isn't necessarily one that passes - it’s one that leads to palpable changes with a company’s policies and practices. Sometimes a majority vote isn’t needed to convince a company to make a requested change. Like our Johnson & Johnson [campaign](https://tulipshare.com/blog/JNJ-stop-sale-of-talc-based-baby-powder-after-calls-from-investors?utm_source=organic&utm_medium=blog&utm_campaign=what+is+a+shareholder+proposal) seeking to remove talc from Baby Powder globally, for instance.

But, by the same token, a shareholder proposal which does pass might not be acted upon, because they are non binding. This is because under typical state corporation law, shareholders lack the power to require the board of directors to take action, on the basis that it would interfere with the board’s ability to govern the affairs of the company.  However, since shareholders have the power to elect the company’s directors, shareholders can show their dissatisfaction by voting in new directors who adhere to the shareholders’ best interests. 

## Who has a right to submit a shareholder proposal?

A shareholder at a publicly traded U.S. company has a right to submit a proposal of up to 500 words to appear on the company’s proxy statement and be voted on at the next annual shareholder meeting, provided that the shareholder meets the eligibility requirements. 

**Here are the current eligibility requirements:**

-The shareholder must have continuously owned a minimum of either 
$25,000 in stock for at least one year
$15,000 in stock for at least two years
$2,000 in stock for at least three years

Shareholders must also own shares that have voting rights attached to them. Some companies offer different share classes, some of which do not have voting rights. 

This is a good time to mention that every share you buy through Tulipshare comes with voting rights attached!

## Can a company block a shareholder proposal?

In short? Yes. But ultimately it’s up to the U.S. Securities and Exchange Commission (SEC) about whether or not it’s allowed on the ballot for the AGM.

If a company wants to exclude a shareholder proposal from the AGM ballot, they need to file a “no-action challenge” with the SEC. The SEC can, however, block that exclusion attempt - meaning the company would then be required to include the proposal in the company’s next proxy statement, wherein shareholders can review the proposal and determine whether or not to vote in favour of it.

Interested in how the SEC determines which proposals to block and which ones to allow? Stay tuned for a separate article all about that. Basically it changes depending on which political party is in power, which can get very interesting!














What is a Shareholder Proposal?

This week we spoke to Richard Busellato and David Ko, two ex-investment managers who have co-authored a book titled The Unsustainable Truth: How Investing for the Future is Destroying the Planet and What to Do About It. 

Podcast - How to Transform Ownership of Oil, Coal, and Gas Companies to Stop Climate Change | Tulipshare

How to Transform Ownership of Oil, Coal, and Gas Companies to Stop Climate Change

See our campaign about fighting for racial equity at Salesforce

Racial Equity Audits are a relatively new ESG initiative. These audits provide an independent review of a company's policies and how well they foster diversity, inclusion, and racial equality. 

 Pushing for racial equality in corporate life is nothing new, but the recent traction from Black Lives Matter has put it into a very sharp focus in the last year. Studies from the [US](https://www.mckinsey.com/industries/public-and-social-sector/our-insights/the-economic-impact-of-closing-the-racial-wealth-gap) and the [UK](https://www.peoplemanagement.co.uk/voices/comment/racial-inequality-affects-the-uk-economy-in-many-ways-but-hr-can-change-that#gref) also show that racial inequity can harm the economy, and so - predictably - the financial world is finally perking up its ears. 

The investment world has begun to view lagging racial equity policies as a risk. Companies who have (or are perceived to have) discriminatory processes or internal cultures are becoming [targets for bad press](https://www.theguardian.com/business/2020/jun/16/john-lewis-criticised-for-lack-of-diversity-in-uk-top-ranks). The reputational damage is having a knock-on effect on shareholder value. By contrast, companies who foster diversity are [more likely to outperform less diverse peers](https://www.mckinsey.com/~/media/mckinsey/featured%20insights/diversity%20and%20inclusion/diversity%20wins%20how%20inclusion%20matters/diversity-wins-how-inclusion-matters-vf.pdf), and investors are beginning to assess their portfolio companies to see how their corporate policies, processes, and products impact civil rights, diversity, and inclusion. As a result, businesses have been quick to [make commitments](https://www.cbi.org.uk/media-centre/articles/british-businesses-to-launch-new-campaign-aimed-at-increasing-racial-and-ethnic-participation-in-senior-leadership/) and address racial inequities.

## How can racial equity audits change business practices?

We are already seeing promises from major corporations in response to findings from racial equity audits. For instance, [Starbucks introduced various initiatives](https://stories.starbucks.com/stories/2020/our-commitment-to-inclusion-diversity-and-equity-at-starbucks/) to foster inclusion and redress the imbalance brought by inequity following a third-party racial equity audit. As a result, they have introduced measures such as:

- Mentorship programs for Black, Indigenous and People of Color (BIPOC).

- Requiring employees to complete '[foundational Inclusion and Diversity learning modules](https://stories.starbucks.com/press/2018/starbucks-to-close-stores-nationwide-for-racial-bias-education-may-29/)' (though this is for US branches only).

- Setting corporate diversity goals and tying them into compensation incentives for executives.

However,  it's unclear whether these initiatives will eventually be replicated globally or will only remain in effect in the Starbucks US branches.

In addition to Starbucks, [Airbnb](https://news.airbnb.com/measuring-discrimination-on-the-airbnb-platform/) and [Facebook](https://about.fb.com/wp-content/uploads/2020/07/Civil-Rights-Audit-Final-Report.pdf) have completed audits. BlackRock has ['broken ranks' with Wall Street](https://www.bloomberg.com/news/articles/2021-04-05/blackrock-breaks-ranks-with-wall-street-in-performing-race-audit) by conducting a racial equity audit in the financial world, and Citigroup and Morgan Stanley have now followed suit, despite [initially urging shareholders to reject the audit proposals](https://www.marketwatch.com/story/citigroup-wells-fargo-bank-of-america-urge-shareholders-to-vote-against-racial-equity-audits-11616026865). 

In the retail world, we've seen similar [rejections by Amazon](https://www.marketwatch.com/story/amazon-investors-reject-new-york-retirement-funds-call-for-a-racial-equity-audit-10-other-shareholder-proposals-11622242863), who felt that because they'd already done a Human Rights Assessment, they shouldn't have to do one for Racial Equity too. But the US's Securities Exchange Commission (SEC) disagreed with Amazon's rejection, [and it was put to vote at the company's AGM](https://www.reuters.com/article/us-amazon-com-sec-vote-idUSKBN2BU38U). 

[Thomas DiNapoli](https://www.osc.state.ny.us/about/comptroller-biography), who filed the original proposal at Amazon on behalf of the New York State Common Retirement Fund, [warned shareholders to be wary](https://www.socinvestmentgroup.com/critical-tool-for-shareholders) of equating Racial Equity Audits with Human Rights Assessments. In a [recent article](https://nyscomptroller.medium.com/remarks-by-new-york-state-comptroller-thomas-p-397b006d1d5c), DiNapoli stated that companies who have completed Human Rights Assessments still face reputational risks and controversies, specifically related to issues of discrimination, equity, diversity, and inclusion.

## What do racial equity audits mean for shareholders?

Recent [Citigroup research](https://www.citigroup.com/citi/racial-equity/) found that the racial wealth gap may have cost the US economy about $16 trillion over the past 20 years  - owing to discriminatory policies surrounding Black Americans’ wages, education, housing, and investment. Additional research by the [WK Kellogg Foundation](https://www.wkkf.org/resource-directory/resources/2018/07/business-case-for-racial-equity) also found that the US economy could add $8 trillion to its GDP by 2050 if it closed this racial equity gap. 

And it's not just an American problem. UK research done by [Henley Business School](https://www.henley.ac.uk/news/2021/new-research-explores-racial-equity-in-uk-businesses) found that businesses which actively confront inequity and racism with practical measures can expect to see an improvement value, "recording an average revenue 58% higher across three years than those which did not." Thus as [Dr. Naeema Pasha says](https://www.henley.ac.uk/news/2021/new-research-explores-racial-equity-in-uk-businesses), "racial equity and business success should not be separate conversations." 

In our opinion, this shows that the public has woken up and wants to steer the corporate ship into new waters -  and investors must pay attention. Companies that foster inclusion and equity are better positioned to drive long-term value for the company, and thus, shareholders and those that ignore the issue will likely get left behind.

While we're finally seeing a long-awaited focus on the social aspects of ESG initiatives, there is still a lot of work to be done. Continuing to highlight racial inequality within companies will create clearer boundaries in the business world and strengthen our understanding of the [ESG framework](https://tulipshare.com/blog/what-is-ESG-investing). By understanding this framework, investors can hold power to influence change. Tulipshare invites all of our users to suggest campaign ideas around racial equity issues on our website - [register today](https://tulipshare.com/signup?utm_source=Blog&utm_campaign=Awareness&utm_id=racial-equity-audits-how-they-can-change-things). 


Racial Equity Audits: What Are They and Why Should You Care?

COP27 starts this week, just as a new report by Sierra Club is released, which analyses net-zero pledges made by top US-banks and whether they’re on target to achieve them.

COP27 starts this week, just as a new report by Sierra Club is released, which analyses net-zero pledges made by top US-banks, and whether they’re on target to achieve them.

Blog - New Report Analyses Net-Zero Pledges of US Banks, Just in Time for COP27 | Tulipshare

[The report](https://sc.org/bank-progress), which is being called the Sierra Club Fossil-Free Finance Campaign, looks at the commitments versus the actions of six of the biggest US banks: JPMorgan Chase, Citi, Wells Fargo, Bank of America, Morgan Stanley, and Goldman Sachs.

All of these banks have made net-zero pledges, but all of them are also falling short of meeting global climate goals. In describing the report, which has been two years in the making, the Sierra Club said, “with the Net Zero Banking Alliance (NZBA) expected to release an update at COP 27 on its members’ progress toward their net-zero commitments, this new report serves as a useful, critical analysis of US banks’ own net-zero commitments, interim targets, and exclusion policies, all summarized in one place.”

Even though all six banks have set 2050 as the year by which to achieve net-zero, this report looks at whether or not they’re even on track to hit their interim 2030 targets. It also lists some key standards used to measure banks’ policies and determine whether they are credible or robust. 

## So why are they falling short?

[Leading experts have said](https://www.theguardian.com/environment/2021/may/18/no-new-investment-in-fossil-fuels-demands-top-energy-economist) that if we want to achieve net zero goals by 2050, we cannot have any new fossil fuel programs. Yet US-banks remain the [top financiers of fossil fuels](https://www.sierraclub.org/press-releases/2022/11/leaders-or-laggards-report-analyzes-net-zero-pledges-us-banks). Unless these banks are prepared to stop funding fossil fuel expansion, it’s unlikely they will be able to meet net zero goals, which could affect the entire planet’s ability to realise net zero goals. 

World leaders will meet in Sharm El-Sheikh starting next week to discuss whether previous targets set for the Paris Agreement are being met, and whether more still needs to be done to give our planet any real chance of preventing catastrophic warming. With this report already showing top banks falling behind on their interim targets, combined with the uncertainty cast in the face of Russia’s invasion of Ukraine and subsequent calls by the [US president](https://www.theguardian.com/commentisfree/2022/mar/31/why-is-biden-boasting-about-drilling-for-oil-our-planet-demands-we-stop-now) and former [UK prime minister](https://www.fnlondon.com/articles/liz-trusss-fossil-fuel-push-risks-investor-backtrack-on-climate-catastrophe-20220929) to expand fossil fuel production, hope isn’t high.


## What exactly is (and isn’t) being measured?

There’s a lot of debate about how environmental impact should be measured and a [notable lack of standardisation](https://tulipshare.com/blog/what-is-ESG-investing) when it comes to doling out ESG ratings. The Sierra Club’s report outlines some of the most critical elements of making robust 2030 targets and compares the US banks against the best practices from their international counterparts, many of which are [refusing](https://www.sierraclub.org/press-releases/2022/11/leaders-or-laggards-report-analyzes-net-zero-pledges-us-banks) to support companies developing new coal projects, as well as oil and gas companies.

Right now, targets aren’t being measured for both lending and underwriting services. This is a big miss because underwriting, which qualifies as a Scope 3 emission, could account for a whopping [88 percent of emissions](https://cleanenergynews.ihsmarkit.com/research-analysis/oil-gas-companies-under-pressure-to-manage-scope-3-emissions-t.html), as has been found for the oil and gas industry at large.

The report also finds that the vast majority of bank financing for oil and gas falls under general **corporate financing**, not **project financing**, meaning that exclusion policies which focus on project financing allow the banks to continue pouring billions into fossil fuels in places like the Arctic and in dirty energy sources like coal. 

“The yawning chasm between the stated climate commitments of the big US banks and their actual policies and targets lies in sharp contrast to the increasingly robust fossil fuel policies of many large European financial institutions. US banks should follow the lead of their European peers, rather than continue with the anti-science fallacy that expanding fossil fuel production is in any way compatible with a liveable climate,” said Paddy McCully, Senior Analyst at Reclaim Finance.

Rainforest Action is also expected to release a [report](https://www.ran.org/press-releases/wallstreetfossilfuelexpandercop27/) in November 2022 that shows how much banks have financed fossil fuel expansion since the Paris Agreement. In February earlier this year, ShareAction released a [report](https://shareaction.org/news/net-zero-banks-continue-to-finance-oil-gas-expansion-ignoring-climate-scenarios-and-posing-huge-risks-to-investors) analysing European banks and net zero.



New Report Analyses Net-Zero Pledges of US Banks, Just in Time for COP27

Find out more about our Coca-Cola Campaign

While the majority of corporate and state entities deserve a mention for their horrendous track record of greenhouse gas emissions, this article takes a look at five of the worst corporate offenders when it comes to contributions to climate change. 

Corporations are contributing to climate change. Find out on Tulipshare's blog

Blog - Corporations Contributing to Climate Change | Tulipshare

[Research](https://www.theguardian.com/sustainable-business/2017/jul/10/100-fossil-fuel-companies-investors-responsible-71-global-emissions-cdp-study-climate-change) shows that just 100 companies are responsible for 71% of global emissions. This is a terrifying statistic, but it also highlights the fact that policy pledges and real action from a small number of companies could make a huge difference to the future of our planet. Let’s take a look at five of the worst corporate culprits when it comes to climate change contributions. 

**1. Chevron**

Born out of Standard Oil, Chevron is [one of the largest polluters in the US](https://www.theguardian.com/environment/2019/oct/09/revealed-20-firms-third-carbon-emissions). The company has adopted a corporate policy of downplaying the effects of human-induced climate change while contributing around [2.84%](https://stacker.com/stories/3971/90-companies-responsible-two-thirds-historical-greenhouse-gas-emissions) of the total atmospheric carbon dioxide rise between 1880 and 2010. What’s more, Chevron invests just [0.2%](http://blogs2.law.columbia.edu/climate-change-litigation/wp-content/uploads/sites/16/case-documents/2020/20200625_docket-2020-CA-002892-B_complaint.pdf) (pg. 49) of its capital expenditure on low-carbon energy sources while increasing its carbon emissions from crude oil, methane, and oil production (between 2017 & 2019). If we’re to collectively reach net-zero, Chevron needs to be held to account for its greenwashing and real change from within is required. 

**2. ExxonMobil**

It wasn’t until [2014](https://www.ibtimes.com/exxon-mobil-acknowledges-climate-change-risk-business-first-time-1565836) that ExxonMobil even acknowledged that climate change was a real threat to the future of the planet. Of all US refineries, those owned by ExxonMobil have been found to emit the most “small particulate matter”, churning out [eight times](https://www.reuters.com/business/energy/three-exxon-refineries-top-list-us-polluters-2021-05-28/) the average rate of the other top ten refineries in the country. Hedge fund [Engine No.1](https://engine1.com/) shook the corporate world when three of its nominees were appointed to the board of ExxonMobil in 2021. Let’s hope that their successful [activist investing](https://www.tulipshare.com/blog/how-activist-investing-can-make-a-difference) campaign will have a positive long-term influence on the polluting habits of the corporation. 

**3. British Petroleum**

While BP is saying all the right things in relation to climate change action, it’s not clear precisely how the company plans to meet its ambitious targets. An announcement from BP in 2020 suggests that [by 2050, the company will reach net-zero](https://www.theguardian.com/business/2020/feb/12/bp-sets-net-zero-carbon-target-for-2050). However, who can forget the horrific nature of the BP oil spill in 2010, which was described by [National Geographic](https://www.nationalgeographic.com/animals/article/how-is-wildlife-doing-now--ten-years-after-the-deepwater-horizon) as “one of the worst environmental disasters in history?” In spite of BP’s bold and buzz-word laden rhetoric, it remains to be seen if the company actually takes the required steps to realise its carbon neutral targets. 

**4. Royal Dutch Shell**

Like BP, [Royal Dutch Shell](https://www.shell.com/energy-and-innovation/the-energy-future/our-climate-target.html) is at least trying to say the right things when it comes to climate change policy. The company is committed to investments in renewable energy sources and natural gas alternatives, but its core operations remain in the fossil fuel industry. Statistics show that Royal Dutch Shell has been responsible for [1.67%](https://stacker.com/stories/3971/90-companies-responsible-two-thirds-historical-greenhouse-gas-emissions) of global mean surface temperature rise since record-keeping began. Just like the other polluters already introduced, Royal Dutch Shell needs to do a lot more to help the global community reach net-zero targets. 

**5. Coca-Cola** 

While the four corporations above operate within the oil and gas industry, Coca-Cola contributes to climate change in a notably different way. Alongside Pepsi and Nestle, Coca-Cola is the [biggest plastic polluter](https://www.theguardian.com/environment/2020/dec/07/coca-cola-pepsi-and-nestle-named-top-plastic-polluters-for-third-year-in-a-row) in the world. Research from [Break Free From Plastic](https://www.breakfreefromplastic.org/globalbrandauditreport2020/?utm_medium=email&utm_source=getresponse&utm_content=LIVE:+Plastic+Polluters+Brand+Audit+Report+&+Invitation+to+Press+Briefing&utm_campaign=Breakfreefromplastic+Membership+Master+List) found that Coca-Cola litter was found in natural sites in 51 of the 55 countries surveyed and was the most littered bottle in 37 of those nations. In 2021, Coca-Cola was [sued](https://www.natlawreview.com/article/coca-cola-sued-deceptive-sustainability-claims) for “Deceptive Sustainability Claims” amid a row with Earth Island, which accused the corporation of covering up their real practices with phoney advertising that is nothing more than greenwashing. 

At Tulipshare, we are currently running a campaign to push [Coca-Cola](https://www.tulipshare.com/stocks/KO) to use 100% of recycled material in its packaging by 2030 - a target that we don’t think is too drastic to implement. We also have a climate change-related campaign running with [JPMorgan Chase](https://www.tulipshare.com/stocks/JPM), and we hope it will help to significantly reduce the company’s investments in fossil fuels. Find out how our ethical [investing campaigns work](https://www.tulipshare.com/how-it-works) today and take action to hold the world’s biggest polluters to account. 

Corporations Contributing to Climate Change: The 5 Worst Culprits 

Investors are increasingly viewing corporate attention to ESG criteria as a good thing. Thus, applying ESG best practices can be considered to be a way to make businesses more competitive and may even yield better financial results. 

The term '[ESG investing](https://tulipshare.com/blog/what-is-ESG-investing)' describes the strategy of investing in a company based on its dedication to environmental, social, and corporate governance issues. Sometimes ESG investing is referred to as 'sustainable' or 'ethical' investing, but it's more specific than that. ESG data helps us understand how to invest ethically. 

[Shareholder activism](https://tulipshare.com/blog/what-is-activist-investing-or-shareholder-activism) - also known as activist investing - is where shareholders use their investments to try to influence a corporation's behaviour. Conscientious shareholders increasingly rely on ESG metrics to guide their investment decisions. But how companies measure ESG is still often seen as a grey area.


## How is ESG measured?

Right now, there is no standardised way to measure ESG, though a growing need to quantify a business's ESG performance has emerged. To get an ESG score, companies must employ a third party to evaluate their performance or develop their own methodology. 

Unfortunately, this often creates very bespoke ESG scores, and ESG data systems can seem to be largely subjective as a result. This makes it increasingly difficult to understand how different ESG scores rank across companies. We believe we need more clarity around these rankings to make sure investment choices truly align with ethics. 

## How can shareholder activism help drive ESG initiatives?

While the goals of shareholder activists can vary greatly, they tend to focus on improving corporate governance within publicly traded companies. Traditionally, shareholder activism was seen as an '[alternative investment class](https://www.cliffedekkerhofmeyr.com/en/news/publications/2018/Corporate/corporate-and-commercial-alert-14-november-shareholder-activism-here-to-stay.html)' altogether, and often resulted in significant merger and acquisition (M&A) activity, particularly in the US. 

However, times have changed. Changing consumer trends [continue to push companies ](https://www2.deloitte.com/ch/en/pages/consumer-business/articles/shifting-sands-sustainable-consumer.html) to adopt more sustainable practices. In addition, the main financial regulator in the US, [the Securities & Exchange Commission (SEC), is working to regulate](https://www.sec.gov/news/public-statement/lee-statement-review-climate-related-disclosure) the way publicly traded companies disclose environmental information, which could help clarify some of the grey areas of ESG evaluations. 

[Investors are increasingly viewing ](https://corpgov.law.harvard.edu/2021/05/29/shareholder-activism-and-esg-what-comes-next-and-how-to-prepare/) corporate attention to ESG criteria as a good thing. Thus, applying ESG best practices can be considered to be a way to make businesses more competitive and may even yield better financial results. This has made it more common for shareholder activists to push for ESG-aligned initiatives where performance is not up to par. As a result, even companies with strong financial returns [may find themselves as targets of activist campaigns](https://www.skadden.com/en/insights/publications/2021/02/the-informed-board/new-tactics-and-esg-themes) on environmental and social issues.

## What does this mean for the future of ESG?

The best part about shareholder activism is that it allows shareholders to engage directly to try to develop new strategies and policies at public companies. Thanks to the rising popularity of ESG, investors can use [existing ESG language](https://corpgov.law.harvard.edu/2021/05/29/shareholder-activism-and-esg-what-comes-next-and-how-to-prepare/) and repertoire to more effectively communicate their objectives to shareholders, making it easier to push for change.  

More work still needs to be done, however, specifically regarding social injustice and inequality within companies. This has its own set of challenges because companies might score favourably in one light, only to discover their policies are damaging when viewed from another perspective - as was the case with [TOMS shoes](https://www.forbes.com/sites/mikemontgomery/2015/04/28/how-entrepreneurs-can-avoid-the-philanthropy-pitfalls/#:~:text=Giving%20away%20shoes%20can%20hurt,shoes%20in%20the%20first%20place.)' one-for-one giving policy. What's more, social issues are constantly evolving and changing, so there needs to be a way to monitor these changes and re-evaluate ESG reporting accordingly.

Staying on top of these issues and using proxy solicitations - or the process companies use to communicate to investors and conduct shareholder votes - may ultimately strengthen ESG transparency and, therefore, increase the welfare of consumers and businesses alike.




How Shareholder Activism Can Help Companies Strengthen ESG Initiatives 

Check out our campaign to stop child labour in a chocolate supply chain

With twenty corporations accounting for a third of all emissions, shareholders can play a big part in making this happen.

Blg- Scientists Say We Should Move Net Zero Targets Forward By a Decade | Tulipshare

Earlier this week the UN issued a new climate report in which scientists say we need to bring net-zero targets forward by a decade.

[The statement was made](https://www.bbc.co.uk/news/science-environment-65000182) as part of a climate survival guide, which found that current net zero targets wouldn’t be enough to slow the pace of climate change. In it they suggested bringing targets forward by a decade. So what does this mean for the shareholder activism space? 

With shareholders increasingly concerned about climate change and the role corporate emissions play in achieving net zero targets, it’s expected that this year will see an increase in climate-related shareholder proposals. This is also helped by the fact that this year the US Securities and Exchange Commission (SEC) [significantly narrowed](https://www.sec.gov/rules/proposed/2022/34-95267.pdf) the standards for excluding shareholder proposals based on their similarity to one another, meaning that multiple climate-change proposals can now be filed at the same time, so long as they are asking for slightly different things. 

**Here are five articles we recommend reading to learn more about the role shareholders have played so far in achieving net zero.**

#### How to transform ownership of oil, gas and coal to stop climate change. 

We invited the ex-hedge fund managers and co-authors of The Unsustainable Truth: How Investing For The Future Is Destroying Our Planet and What We Can Do About It to speak with us on our podcast about how our mentality towards investing needs to change if we’re to tackle the climate crisis - and whether or not divestment is ever the right answer.

[Podcast (and transcript) here](https://tulipshare.com/blog/how-to-transform-ownership-of-oil-gas-coal-to-stop-climate-change?utm_source=organic&utm_medium=blog&utm_campaign=new_net_zero)

#### Shell directors are being sued by shareholders in a historic case

If ever you wanted proof of the power shareholders have, and why now is an exciting time to be getting into shareholder activism, this is the story to read.

[Read the story here](https://tulipshare.com/blog/shell-directors-sued-shareholders-climate)

#### Discussing climate change and COP27 with climate researcher and comedian Matt Winning 

Matt Winning is a successful stand-up comedian, but he’s also a climate scientist. He wrote a book called Hot Mess: What On Earth Can We Do About Climate Change? And he also came onto our podcast to speak to us about greenwashing and COP27. At the risk of giving out a spoiler alert, he did say that it was kind of up to shareholders to save the world. 

[Podcast (and transcript) here](https://tulipshare.com/blog/climate-change-comedy-and-COP27-matt-winning?utm_source=organic&utm_medium=blog&utm_campaign=new_net_zero)

#### How shareholders pressured Chevron towards a climate transition

Chevron shareholders filed a [proposal](https://www.follow-this.org/wp-content/uploads/2021/01/US-2021-climate-resolution-Chevron.pdf) that was unique in that it didn’t just ask Chevron to cut its own emissions, it asked for them to also slash the footprint coming from its oil and gas-burning customers through a Scope 3 target. Read more about what happened in our blog article.

[Read the full story here](https://tulipshare.com/blog/shareholders-pressure-chevron-towards-climate-transition?utm_source=organic&utm_medium=blog&utm_campaign=new_net_zero)

#### How shareholders pushed HSBC to commit to a coal phase-out plan

Phasing out coal is crucial to halting climate change, but it’s also a big job that requires cooperation from global governments, communities, and companies. As the IEA puts it: “The early involvement of banks and other investors is critical to deal with potential external financial exposures.” Read all about how shareholders came together to effectively apply pressure on one huge bank to get the ball rolling on phasing out coal.

[Read the full story here](https://tulipshare.com/blog/how-shareholders-pushed-HSBC-to-commit-to-coal-phase-out-plan?utm_source=organic&utm_medium=blog&utm_campaign=new_net_zero)





Scientists Say We Should Move Net Zero Targets Forward By a Decade

Here's our pick of recent shareholder activism news

Our pick of recent news in the shareholder activism space

The Activist Investor - Bank chaos, Larry Fink's stance on climate change, and important upcoming dates | Tulipshare

Bank chaos, Larry Fink's stance on climate change, and important upcoming dates

Corporate social responsibility is one of those business terms that often gets muddled up in various definitions.

Our mission is to hold corporations accountable for their impacts, both socially and environmentally. Learn more about our CSR strategy online now.

That’s because there are plenty of ways to go about corporate social responsibility, which can all have a positive impact on both society and the planet. But what exactly is corporate social responsibility and how do we keep corporations committed to it?

### What is corporate social responsibility?

Corporate social responsibility (“CSR”) is a business concept that aims to improve society at large. The ultimate goal of corporate social responsibility is to incorporate the economic process with social justice and environmental preservation. For example, thanks to a corporate social responsibility strategy, a company can help make its economic progress beneficial to numerous parties, including suppliers, employees, shareholders, and customers, while minimising any ecological impact on the planet.

### What is an example of corporate social responsibility?

Reducing carbon emissions, actively engaging in charity work and improving labour policies are all prime examples of corporate social responsibility goals. For instance, Netflix provides their employees with [52 weeks of paid parental leave](https://www.vox.com/2018/1/31/16944976/new-parents-tech-companies-google-hp-facebook-twitter-netflix) to both birth and non-birth parents, including adopted children. This can even be taken at any stage of the child’s life and is 36 weeks more than the median number of weeks for other big tech companies. On top of this, Netflix and other companies generally show support for social causes, such as Black Lives Matter, which also would come under CSR.

### What is the purpose of corporate social responsibility?

The purpose of corporate social responsibility is to help create a world that’s better for everybody, not just pocket stuffing elites. A successful CSR strategy ensures that local communities, customers, employees, shareholders, and suppliers all benefit, as well as create a more sustainable world. In fact, CSR has also been shown to fuel innovation in the corporate sector, helping to push important developments for the benefit of all. 

### Holding corporations accountable

So - how do we hold huge corporations accountable for their corporate social responsibility? While CSR can benefit the planet and society, some companies have resorted to crafting CSR goals in order to ‘greenwash’ and mask the company’s bad practices. Holding these companies to account is therefore essential. At Tulipshare, our goal is to leverage shareholder power to bring about real, lasting change inside corporations. So - how do you get involved? 

Let’s take JPMorgan Chase as an example. The international bank has [committed to a dedicated CSR programme](https://www.jpmorganchase.com/impact) to help improve sustainability amongst other things. Despite this, [Reclaim Finance discovered ](https://reclaimfinance.org/site/wp-content/uploads/2021/03/BOCC__2021_vF.pdf)that JPMorgan Chase is the world’s largest financier of fossil fuels, investing $316.735 billion between the years 2016-2020. While the bank has [recently pledged $2.5 trillion](https://www.cnbc.com/2021/04/15/jpmorgan-pledges-2point5-trillion-over-10-years-toward-climate-change.html) over the next 10 years in climate finance, we believe that JPMorgan Chase’s targets are misleading, given its continued large-scale investments in fossil fuels. 

Furthermore, [the global bank was recently found](https://www.banktrack.org/article/wetsuweten_chiefs_demand_investors_and_financiers_of_coastal_gaslink_to_divest_from_this_and_all_future_pipeline_projects) to have [funded TC Energy’s Coastal GasLink](https://thetyee.ca/News/2021/08/17/Coastal-GasLink-Spills-Contaminants-Wetsuweten-Territory/), a fracked-gas pipeline; related contaminants ended up leaking in Wet'suwet'en Territory, British Columbia, within 300 meters of a stream carrying at-risk fish species.

Big banks and corporations don’t have to listen to everyone, but they do have to listen to their shareholders. [Our newest campaign](https://tulipshare.com/stocks/JPM) presses JPMorgan Chase to stop its investments in fossil fuels and more strongly adhere to its CSR commitments to promote a sustainable, environmentally healthy earth. When shareholders act collectively, they can potentially bring about big change. 

The importance of corporate social responsibility is clear: it can not only increase economic progress but can also benefit people and the planet. Activist investing is a great way to help push corporations into a greener, more ethical business structure and hold them responsible for their promised targets. Sign up today and join a campaign you’re passionate about at Tulipshare.

Corporate social responsibility is one of those business terms that often gets muddled up in various definitions. That’s because there are plenty of ways to go about corporate social responsibility, which can all have a positive impact on both society and the planet. But what exactly is corporate social responsibility and how do we keep corporations committed to it?

What is Corporate Social Responsibility? 

Proxy season is a crucial time of the year for activist and impact investing, as the world’s largest corporations host their AGMs. 2022 saw some progress made in regards to ESG promises and policies, but what can we expect from proxy season next year? 

Learn more about what a proxy season is and 2022 proxy season performance. 

- ## What is proxy season?

Proxy season runs from the middle of April until June and is the period of time in which most large, publicly traded companies host their AGMs. Shareholders are invited to vote on various issues stated on the proxy voting card after reviewing the financial performance of the firm. In 2021, an [unprecedented](https://www.conference-board.org/press/proxy-season-2022) number of shareholder proposals on environmental and social issues came to a vote, with ESG proposals receiving majority support for the first time. But how did it perform this year? 

## What did we expect from proxy season 2022? 

A detailed analysis by [The Conference Board](https://www.conference-board.org/topics/shareholder-voting/2022-proxy-season-preview) into what to expect from the 2022 proxy season suggests some interesting insights: 

- More ESG shareholder proposals are likely to be submitted, voted upon, and supported than ever before. 
- There is likely to be a sustained investor focus on racial, gender, economic, and health equality this proxy season, with a particular focus on diversity and disclosure. 
- Companies in all industries - not just those that are carbon-sensitive - should expect more specific shareholder proposals on climate. 
- We are likely to see a collision between companies and shareholder activists in regards to political contributions, climate-related lobbying, and traditional lobbying. Might we see a repeat of [Engine No.1’s Exxon ](https://www.nytimes.com/2021/06/09/business/exxon-mobil-engine-no1-activist.html)success of last year? 
- Governance proposals are likely to remain as contentious as ever. 

## A recap of the 2022 proxy season :

[PWC's Governance Insights Centre](https://www.pwc.com/us/en/services/governance-insights-center/assets/pwc-boardroom-recap-2022-proxy-season.pdf) had released a report on the number of proposals and their support. Here are some of the key takeaways:

- The number of proposals voted on was record breaking, up 25% from the previous year. 
- However, the average support for each proposal fell. 
- Racial equity audit was the best performing proposal that saw an increase in average support from 33% to 45%.
- Climate proposals saw a 100% growth in number
- Say on Pay proposals see a decline in support as a record breaking number of proposals failed to receive support. 

## Companies we will be watching next season

Shareholders will have a keen eye on the proxy statements of the companies that they are invested in as proxy season is about to get underway. [Johnson & Johnson’s 2022 proxy statement](https://www.investor.jnj.com/annual-meeting-materials/2022-proxy-statement) seeks approval for the company’s 2022 ‘long-term incentive plan’ and details various other issues to be voted on during the AGM.

 At Tulipshare, we demanded that [Johnson & Johnson](https://www.tulipshare.com/campaigns/JNJ) stop the global sales of their cancer-causing products. The company still says that its talc is safe, even though various studies have linked it to multiple types of cancer. 

Last Friday, Johnson and Johnson announced that they will be stopping their sale of talc based baby powder all around the world. 

We will also be keeping a keen eye on the proxy statements released by [Google](https://www.sec.gov/Archives/edgar/data/1652044/000130817922000223/lgoog2022_pre14a.htm), [Amazon](https://materials.proxyvote.com/Approved/023135/20220331/NPS_499771.PDF), [Coca-Cola](https://investors.coca-colacompany.com/filings-reports/proxy-statements/content/0001206774-22-000669/ko_courtesy-pdf.pdf?TB_iframe=true&height=auto&width=auto&preload=false), and [McDonald’s,](https://www.sec.gov/Archives/edgar/data/63908/000120677422001058/mcd3962181-defc14a.htm) among others, as we are demanding changes within each of these global giants. 

For impact investing to work, we need to hold the world’s most unethical companies to account from within by leveraging our [collective shareholder power](https://www.tulipshare.com/how-it-works) to drive change. We invite you to get involved in any of our [current campaigns](https://www.tulipshare.com/campaigns) this proxy season or feel free to get in touch with us if you have an idea that you would like us to consider.


A Recap Of The 2022 Proxy Season 

Traditionally, activist investing has been seen as an activity that favours profit at the expense of everything else. 

Activist investing allows us to advocate for social and environmental change from within companies. Discover shareholder activism trends on Tulipshare.

Blog - How Activist Investing Could Be Used to Make a Difference | Tulipshare

However, [Tulipshare](https://tulipshare.com/blog/Tulipshare-activism-investing) prioritises impact over returns when engaging with the companies behind our campaigns - following the belief that there will be no returns without positive impact.  But what exactly is activist investing and how can it be used to make an ethical and large-scale difference to society and the world at large?

### How activist investing works

Activist investing is when a group or an individual buys enough shares in a company to pressure the company’s leadership or try to influence how that company is run. This investment strategy can have huge impacts on corporations and can either be used to drive profits or push for wider corporate change.

### So… is activist investing good or bad?

That depends totally on how you go about things. As mentioned above, activist investing isn’t always used for ethical reasons. For instance, some activist investors - like the American billionaire [Dan Loeb](https://www.forbes.com/profile/daniel-loeb/?sh=1e6058a97c2d) - are known for using activist investing to force change that benefits their financial profile. They do this by buying a big amount of shares in a company and, due to his shareholder leverage, force through changes that benefit him. 

Understandably, this can be viewed negatively, with the concern being that an individual shareholder holds too much power. However, activist investing doesn’t have to be that way, which is where [Tulipshare](https://tulipshare.com/about-us) comes in.

### How does Tulipshare differ?

Tulipshare takes [an entirely different stance](https://tulipshare.com/how-it-works) on activist investing. As opposed to the profiteering approach taken by rich individuals, our efforts are focused on collective and ethical change in multi-national corporations. In addition, Tulipshare prioritizes the voices of the retail investor, a group of investors that they believe have been silenced to date.  We open up campaigns on our platform at publicly-held companies and engage with these companies as an investor, whilst also allowing individuals to invest behind our campaigns, bringing a stronger force to push the changes we advocate for. What’s more, we encourage our users to exercise their individual shareholder rights by showing up to shareholder meetings and using their votes wherever possible.

As a Tulipshare user, you’re also able to suggest campaigns. We want to see better shareholder democracy and for the power to be put back in the hands of the people.

### How do I get started?

If you want to get involved with any Tulipshare campaigns, the process isn’t complicated. Simply set up your own account and complete your registration. When on your personal Tulipshare dashboard, you can have a look through their current campaigns and make your own decisions about what cause is most suitable for you. After investing, you’ll be kept updated on the progress of these campaigns after each milestone has been reached, either through email or your own dashboard.

If you have any of your own suggestions for new campaigns Tulipshare would love to hear from you - simply send them a comment in the area on our[ homepage](https://tulipshare.com/). Interested in starting your journey as an activist investor? Get in touch with us today to learn more - we’re happy to chat!

How Activist Investing Could be Used to Make a Difference

We've launchd a brand-new campaign at Microsoft. Check it out.

Thanks to the hit HBO show Succession, many of us now better understand how conglomerates are run behind the scenes. But what has the show taught us about shareholder democracy? Let's find out. 

What can HBO's Succession tell us about shareholder democracy? Find out on Tulipshare's blog.

Blog - What Can HBO's Succession Teach Us About Shareholder Democracy? | Tulipshare

[Succession](https://www.hbo.com/succession) has enjoyed huge popularity on the HBO network throughout its three seasons. In it, we are treated to an insight into how the fictional conglomerate Waystar Royco operates behind closed doors. In season three, the executives of the family-run company promised to turn things around and essentially start afresh. Cue the annual shareholder meeting where everything came to a head. However, instead of agreeing to the changes tabled at the meeting, the Roy family had been negotiating and influencing shareholders in the weeks before the meeting to ensure they would deliver their votes according to the family's wishes. 

Although the scenario played out in season three of Succession is fictional, it is eerily representative of what happens at some of the world's major corporations, as we explore below. 

## Shareholder control: the reality 

Many of the world's largest corporations are run to give their founders control over the company's future direction. Tesla, for instance, is structured in a way that has enabled Elon Musk to [block](https://www.morningstar.com/articles/1061914/teslas-growing-investor-revolt) four of the five shareholder resolutions at the company's annual shareholder meeting last year. Mark Zuckerburg exerts a similar level of control over Meta, where he has the power to veto the votes laid by shareholders. Such arrangements enable CEOs to run their companies precisely how they want to while disregarding ethical, environmental or labour concerns. 

## How does proxy voting contribute to shareholder democracy? 

Proxy voting is a system that enables company shareholders to influence corporate governance. When you become a shareholder, you have the right to vote on the resolutions discussed at the annual shareholder meeting. These votes are regarded as [a proxy](https://tulipshare.com/blog/five-things-for-the-2022-proxy-season) because they are submitted from outside the company, usually online or via mail. Proxy voting allows you to have your say on issues including executive pay, short-and-long-term targets, and topical issues like climate change. 

Crucially, proxy voting allows shareholders to influence policy at the top of the company. Presently, many corporations are being held to account for their ignorance of climate-friendly policies, which has led to a considerable increase in interest in [ESG investing](https://tulipshare.com/blog/what-is-ESG-investing). We have also seen significant strides by activist investors such as [Engine No1](https://reenergizexom.com/who-is-engine-no-1/). They managed to appoint three dissident director candidates to the board of directors of Exxon Mobil, much to the shock and frustration of the current executives. 

## The bottom line 

At the very top of the tree, company executives do whatever they can to stay in control, as exemplified expertly by the cast of Succession. In many real-life conglomerates, the resolutions passed at annual shareholder meetings are settled beforehand, much to the dismay of the shareholders hoping to influence change. But this is [all changing](https://t.co/jL6T5baV0H), with many platforms - including Tulipshare - finding ways to give more power to retail investors.

At Tulipshare, we support investors to leverage their shareholder power to influence corporate governance in some of the world's largest companies. Our [campaigns](https://www.tulipshare.com/) allow shareholders to bring about significant change, be it in [Johnson & Johnson](https://www.tulipshare.com/stocks/JNJ), [Apple](https://www.tulipshare.com/stocks/AAPL), or [Amazon](https://www.tulipshare.com/stocks/AMZN), for instance. If we want to see real, systemic change in how the biggest companies on the planet operate, activist investing through proxy voting is one of the ways to go about it. 

Otherwise, as Succession showed us, it's all too easy for boards to circumvent the will of the shareholders to suit their own agendas. 


What Can Succession Tell Us About Shareholder Democracy?

The 2023 proxy season has begun! We’ve put together a quick guide for retail investors, explaining how to navigate your way through a company’s proxy statement. 

BLOG - Demystifying Proxy Statements: Our Guide On What To Look For and Why To Care | Tulipshare

Before we get started, it’s important to note that we at Tulipshare are not financial advisors and the content of this article is for information purposes only.

### What is a proxy statement? 

A proxy statement is a document distributed by publicly traded companies that provides information to shareholders, as required by the US Securities and Exchange Commission (SEC). Proxy statements are made available at least 40 days prior to a company’s annual general meeting (AGM), and allow shareholders to make informed decisions about proposals to be voted on at the upcoming meeting. A company’s previous and most recent proxy statements will be available on the company’s website and on the SEC’s webpage. For a shortcut, go to the SEC’s Electronic Data Gathering, Analysis, and Retrieval system ([EDGAR](https://www.sec.gov/edgar)) and search the name of the company whose proxy statement you want to review. 

It’s important to note that proxy statements can be either preliminary or definitive. To differentiate between the two, please note that a preliminary proxy statement will be marked as a PRE14A form and a definitive proxy statement will be marked as a DEF14A form. What’s the difference between the two? A preliminary proxy is usually released before the definitive proxy and may lack certain information, so it is important to always refer to the definitive proxy.  

### Navigating through a proxy statement 

First, make sure to look at the table of contents to effectively navigate through the proxy statement. It is a long document, so knowing how its contents are laid out is helpful. 

Though you may not need to read the entire proxy statement from beginning to end, it is important to familiarise yourself with the information mentioned below to make an informed decision about matters that will be brought up at the AGM.  

**AGM date:** You will see the date and time of the AGM in the introduction section of a company’s proxy statement. 

**Record date:** Pay attention to the record date! It is the cut-off date used to determine which shareholders are eligible to vote at the AGM. This means that in order to vote, you will need to own stock in a company by the record date. 

**Board of directors:** A proxy statement will contain information about: the company’s board of directors, including details of current directors and new appointees; information about directors’ compensation and bonuses (pay attention to ESG bonus structures); and declarations made by the company’s management. 

**Election of directors:** Shareholders will be able to vote for or against the (re)appointment of directors. If you intend to cast your vote, make sure to research the directors of the company thoroughly. We recommend that you go beyond just reading information about the board of directors in the proxy statement. 

**Shareholder proposals:** Referring back to the table of contents, shareholder proposals will be listed in the ‘Shareholder Proposals' section. Each proposal will be listed as a separate item. Make sure to read through each proposal carefully and do your own research before voting. 

**Opposition statements:** Underneath each proposal, a company may publish its opposition statement, most often encouraging shareholders to vote against the proposal. Make sure to read those statements too, but don’t be gullible! As previously mentioned, proxy statements are released in advance of the AGM, so make sure to do your research to validate the arguments brought forward in the opposition statements. 

However, don’t be surprised if you don’t see an opposition statement underneath a proposal, but instead find that the company is encouraging shareholders to vote in favour of a given proposal. This also happens, but less frequently. 

Voting and Meeting Information: In this section of the proxy, you will see information about voting, detailing who can vote at the AGM, how investors can vote by proxy or virtually during the AGM, whether votes can be revoked or changed, and other information about attending the AGM in person. 

See you at the AGM! 

If you have any questions, please do not hesitate to contact us by tapping on the ‘contact us’ tab through your app.





Demystifying Proxy Statements: Our Guide On What To Look For and Why To Care 

On the 8th of February ClientEarth, a shareholder of Shell, filed a lawsuit against Shell’s Board with support from institutional investors.

Shell directors are being sued by ClientEarth. Check out the fully story.

Blog - Shell directors are being sued for lack of climate plan | Tulipshare

Here’s more about the case, from [ClientEarth](https://www.clientearth.org/):

This world-first derivative action (a suit brought by a shareholder on behalf of a corporation) is happening in the High Court of England and Wales. The shareholder’s case is supported by other investors with over 12 million shares in the company. Those on board include:

- UK pension funds Nest and London CIV 
- Swedish national pension fund AP3
- French asset manager Sanso IS 
- Degroof Petercam Asset Management (DPAM) in Belgium
- Danske Bank Asset Management and 
- Danish pension funds Danica Pension and AP Pension in Denmark. 

## Why are shareholders bringing a case against Shell?

ClientEarth’s claim alleges that the Shell Board is mismanaging climate risks, breaching their legal duties. Shell is exceptionally vulnerable to the physical and transitional impacts of climate change. The company may be making record profits now due to the turmoil of the global energy market, but the writing is on the wall for fossil fuels long term. 

**Shell's Boards Energy Transition Strategy is fundamentally flawed.** Shell’s business strategy does not take into account these risks, posing immense challenges to the company’s long-term success.

**While the oil major has announced to become net-zero by 2050, its current operating plans and expenditures don’t reflect that ambition.** The group’s net emissions are calculated to fall [by just 5% by 2030](https://www.accr.org.au/research/update-shell-emissions-forecast/?mc_cid=51a29ef7c2&mc_eid=137ca6ca76), which is a far cry from the net 45% reduction in group-wide emissions by the end of this decade ordered by a Dutch Court in May 2021. 

**The current proportion of investment going into the transition is minuscule.** So the Board is wasting a golden opportunity to position the company for the energy markets of the future. Last week, Shell was accused of mislabeling its current renewable energy investments. [According to Global Witness](https://www.theguardian.com/business/2023/feb/01/shell-renwable-energy-spending-sec-global-witness), 1.5% of Shell’s capital expenditure has been used to develop genuine renewables, such as wind and solar which is over 10 per cent less than what the company claims in its annual report.

**Long term, it is in the best interests of Shell, its employees and shareholders – as well as the planet – to reduce its emissions harder and faster than the Board is currently planning.**  The green energy transition is happening now, but the Board’s current strategy clings to fossil fuel investments despite the recommendations of the International Energy Agency. 

## Why does it matter? 

The significant backing from institutional investors underlines that **shareholders are deeply concerned about the Board’s lack of plans regarding a low-carbon transition**. It’s in the best interest of Shell to reduce emissions and prepare for a low-carbon economy. 

This will be the first time that a company’s board has been challenged on its failure to prepare for the energy transition properly as it is part of their directors’ duties. **Similar lawsuits [could impact](**link**) other Boards of Directors of high-emitting companies, including those operating under Delaware law.**

## How does shareholder litigation work?

A derivative action is a claim brought by a company shareholder – ultimately on behalf of the company – in this case to argue alleged breaches of duty by the Board. That means the shareholder bringing the claim is effectively seeking to step into the company’s shoes to pursue the Board for wrongs allegedly committed against the company.



Shell Directors Are Being Sued By Shareholders in Historic Case

We all know how important voting is to democracy. There is no shortage of campaigns urging people to get out and vote before their next political election. But when it comes to shareholder democracy? You might as well hear crickets. 

That’s probably because it doesn’t occur to many retail investors that they could have a say in how businesses are run, and traditionally big businesses haven’t really been quick to promote that fact. They’re busy enough having to answer to the bigger institutional investors, [who placed the majority of the votes](https://www.broadridge.com/_assets/pdf/broadridge-proxypulse-2020-review.pdf) for the 2020 proxy season. 

But retail investors are a key part of shareholder democracy, as they are still part owners of the company no matter how small their stock. Still, there’s a lot of work to be done to make the shareholder voting process more accessible and therefore effective.

Here are a few ways to get started exercising your shareholder rights.

### Understand the company rules

Find out whether or not you hold shares with voting rights attached to them. Some shares that you can buy may not have voting rights, so it’s important to find out if you hold voting or non-voting shares of corporate stock.

Take a look at the record dates for companies you hold shares with and make note of when you’re allowed to vote. A company’s ‘record date’ is typically included in a company’s publicly released annual meeting notice and serves as a cutoff date for shareholders who can participate in the company’s upcoming proxy voting process. This is important because people are always buying and trading stock, so companies need a way to establish a cutoff date for participating in their proxy vote.

Shareholders who want to submit proposals must own a certain amount of shares for a certain period of time before they can be eligible to submit their proposal. The US Securities and Exchange Commission (SEC) Rule 14a-8(b) requires shareholders seeking to submit proposals to have continuously held at least $2,000, $15,000, or $25,000 in market value of the company’s securities entitled to vote on the proposal for at least three years, two years, or one year, respectively.

Once you’ve made note of relevant record dates, you can start circling some new dates in your calendar such as deadlines to submit shareholder proposals.

### Find out when a company’s AGM is being held

Most publicly-held companies will hold what are known as annual general meetings (or AGM’s), also referred to as annual shareholder meetings. This is when companies share updates with shareholders on profits, changes to board of directors, and other relevant company updates. It’s also when companies offer shareholders a chance to vote on proposals, information about which is typically distributed ahead of time. 

Each company has a different date for their AGM, but it tends to occur during what’s known as ‘[proxy season](https://tulipshare.com/blog/five-things-for-the-2022-proxy-season)’ - sometime between mid-April and mid-June each year (though not always).

It can be difficult to keep track of all the different dates, and voter ballots can be confusing and convoluted. Tulipshare aims to keep our users updated on key dates relevant to our campaigns.

### Get out there and vote!

As with political democracy, shareholder democracy requires votes. We’re in the midst of a [retail investor boom](https://www.cnbc.com/2021/04/08/a-large-chunk-of-the-retail-investing-crowd-got-their-start-during-the-pandemic-schwab-survey-shows.html), particularly among the younger crowd. One survey found that [almost half of investors aged 25-40](https://www.irmagazine.com/shareholder-targeting-id/retail-investors-millennials-most-likely-vote-their-proxy-finds-new-survey) said they planned to vote at their next shareholder meeting. Yet, in the 2020 proxy season only 28% of retail investors actually voted during AGMs. We at Tulipshare encourage shareholders to be active participants in the companies in which they hold stock. We also facilitate shareholder activism by crafting campaigns and submitting shareholder proposals. Like-minded investors can then join our campaigns by buying stock and exercise their shareholder rights when it comes time to vote.

We have a lot of work to do to strengthen shareholder democracy, but if we truly want the people to have the power then it all has to start with you - the retail investor. 

If you’re curious about being more active as a shareholder, be sure to keep an eye on our campaigns and subscribe to any relevant mailing lists. We plan to keep our platform users up to date with upcoming AGM news and voting opportunities relating to our campaigns, as well as communications between ourselves and relevant Investor Relations teams.



How to Exercise Your Shareholder Rights

The proverbial “proxy season” happens each year between mid-April and mid-June, during which time many large corporations will host their annual meetings.

The proverbial “proxy season” happens each year between mid-April and mid-June, during which time many large corporations will host their annual meetings. In the run-up to these meetings companies give shareholders crucial information (in the form of proxy statements) about the company, including issues that will be up for vote during the annual meeting. 

As you can imagine, this is an important time for activist investors because this is when they have the power and potential to try to make real change within a company – by voting. 

Incidentally, we are about to see some changes in the run-up to the 2022 proxy season, and here are the five main things you should know about.

### ESG topics will be more popular than ever

We’ve had a crazy past couple of years, but halting the momentum of ‘life as we knew it’ had a special side effect: it gave us time to think about the big issues. It’s impossible to ignore the renewed focus and effort on environmental and social topics, especially as they relate to the corporate and financial worlds. 

The 2021 proxy season [placed an increased importance](https://www.forbes.com/sites/bhaktimirchandani/2021/06/28/what-you-need-to-know-about-the-2021-proxy-season/?sh=6d597e937f5e) on sustainability and inclusion. And even though environmental and social topics have remained relatively unchanged since 2020’s season, shareholder interest in these topics has increased. 

The pandemic, racial violence, and social unrest have [triggered new waves](https://www.ft.com/content/8813b73d-c39d-41c9-b1a8-ba2d2e2374da) of shareholder proposals linked to racial justice and equal opportunities. [For the first time ever](https://www.sullcrom.com/files/upload/Lessons-from-the-2021-Proxy-Season.pdf), environmental and social issues represented the majority of proposals submitted last year. 

Governance proposals are the ones most likely to go to vote, and environmental least likely. However, out of the environmental issues that did go to vote last season, an increased number of those [received over 50% support](https://www.ey.com/en_us/board-matters/esg-developments-in-the-2021-proxy-season). There is hope that this trend will continue after the recent COP26 summit and [Glasgow Climate Pact](https://www.theguardian.com/environment/2021/nov/14/what-are-the-key-points-of-the-glasgow-climate-pact-cop26).

## Shareholder activism is increasing

Once a title reserved for the 'wealthy few' who could afford to commandeer companies and make big changes for shareholders, [shareholder activism](https://tulipshare.com/blog/what-is-activist-investing-or-shareholder-activism) is starting to get more attention as a viable solution to counter corporate greed and irresponsibility. 

For instance, the number of activist campaigns in the US alone has [increased by 200%](https://www.forbes.com/sites/bhaktimirchandani/2021/06/28/what-you-need-to-know-about-the-2021-proxy-season/?sh=5c74bcee7f5e) over the last four quarters. What's more, successes such as [Engine No.1’s ](https://www.cfodive.com/news/boards-facing-regulatory-scrutiny-intensify-esg-focus/608335/)coup on the ExxonMobil board of directors have paved the way for new, innovative approaches to campaign for better company practices. 

The big investment firms know this too, with many already heavily advertising ‘[ethical portfolios](https://www.bestinvest.co.uk/news/our-ethical-ready-made-portfolio)’ and ‘[sustainable investing](https://www.blackrock.com/us/individual/investment-ideas/sustainable-investing).’ The UK’s Financial Conduct Authority (FCA) has also issued guidance to help investors make more informed decisions around [ESG investing.](https://tulipshare.com/blog/what-is-ESG-investing)

### New rules about how many shares are needed to submit a proposal

[Rule 14a-8 ](https://www.sec.gov/corpfin/procedural-requirements-resubmission-thresholds-guide)is a rule set by the US’s [Security and Exchange Commission](https://www.sec.gov/) (SEC) and it pertains to how much stock someone has to own in a company in order to be eligible to submit a shareholder proposal. It used to be that you had to own just $2,000 worth of shares, or 1% of the company’s securities, but the thresholds have changed to:

- $2,000 of the company’s securities for at least three years;
- $15,000 of the company’s securities for at least two years; or
- $25,000 of the company’s securities for at least one year.

The Trump Administration is responsible for the increased ownership thresholds required of shareholders and, unfortunately, it makes it more expensive and therefore more difficult for ordinary investors to submit shareholder proposals, but it is now being legally [challenged](https://www.reuters.com/world/us/investors-sue-us-regulator-over-trump-era-agm-resolution-rules-2021-06-15/). 

U.S. Senator Sherrod Brown said that the rule was, “yet another ploy by the Trump Administration to undermine shareholder democracy. Last year’s changes to the SEC rule on shareholder proposals made it much harder for working families and investors to hold corporate management accountable.”

However, we do feel there is hope after another related Trump-era policy was recently rescinded by the SEC.

### Reversals on Trump-era policies 

The SEC recently reversed a Trump-era policy which had made it easier for companies to exclude certain shareholder submissions from proxy statements. 

Under the new guidelines, the process to submit shareholder proposals [will be more streamlined](https://www.wsj.com/articles/sec-eases-path-for-shareholder-proposals-on-environmental-social-issues-11635979349) with regards to environmental and social issues.  The revised policy directs SEC staff to be [more receptive ](https://www.sec.gov/corpfin/staff-legal-bulletin-14l-shareholder-proposals)to shareholder proposals regarding issues that have “a broad societal impact.”

This reversal reflects the SEC’s growing focus on shareholder democracy under the Biden Administration, and shareholders now stand a fairer chance at holding companies and their executives accountable for ESG-related shortcomings.

### It will now be easier for investors to track voting decisions

In addition to the above changes, the [SEC has also proposed](https://www.nytimes.com/2021/10/15/business/shareholder-democracy-stocks.html) changes to ‘form N-PX’, which details a company’s proxy voting record. [These changes](https://www.sec.gov/files/npx-fact-sheet.pdf) would make it easier for both investors and journalists to track voting decisions, and therefore increase transparency and make voting information “easier to analyze”. 

It would also require companies to categorise the ballot so that investors can more easily find the issues they are passionate about voting on. Example categories would include: votes pertaining to board of directors, environmental policies, social policies, and corporate governance (among others).

Currently, the system does not require this kind of categorisation and often proxy statements lack standardised descriptions, which can convolute the process and make it harder for investors to find the issues they’d like to focus their attention on. 



Five Things You Need to Know Going Into This Proxy Season

Check out what we've been campaigning for at Amazon

Put simply, activist investing and shareholder activism is the act of investing your money into publicly traded companies held on the stock market and then using your shares to influence their corporate governance.

Blog - What is Shareholder Activism? | Tulipshare

**Why do we need Activist Investing?**

We’ve all seen the news: the private sector, left unchecked, has demonstrated its potential to [damage the environment](https://b8f65cb373b1b7b15feb-c70d8ead6ced550b4d987d7c03fcdd1d.ssl.cf3.rackcdn.com/cms/reports/documents/000/002/327/original/Carbon-Majors-Report-2017.pdf?1499691240), [contribute to rising inequality](https://www.oxfam.org/en/press-releases/just-8-men-own-same-wealth-half-world), and [ignore social responsibility in favour of greed](https://journals.sagepub.com/doi/full/10.1177/0149206320902528).

For instance, despite making numerous promises to use more recycled plastic in their production line [Coca-Cola has repeatedly fallen short of its targets](https://www.ft.com/content/bb189a2a-57ca-44ce-82ab-1d015a20ca1c), [continuing its reign as one of the world’s top polluters](https://tulipshare.com/stocks/KO). Apple, another [titan of waste](https://globuswarwick.com/2021/01/21/the-e-waste-problem-a-case-study-of-apple/), skirts corporate social responsibility by shrouding its device repair policies in [layers of convoluted rules](https://www.vice.com/en/article/evjx9j/apple-will-finally-sell-iphone-parts-to-repair-shops-but-not-to-you), ultimately leading to more consumer waste. Amazon, on the other hand, has an ongoing [reputation for ignoring workers’ rights](https://www.theguardian.com/commentisfree/2020/dec/01/amazon-workers-fighting-for-their-rights).* 

We know that globally [we are not meeting crucial global climate change-related targets](https://unfccc.int/news/climate-commitments-not-on-track-to-meet-paris-agreement-goals-as-ndc-synthesis-report-is-published). We also know that [a healthy, well-paid, socially mobile workforce](https://www.parliament.uk/globalassets/documents/fair-society-healthy-lives-full-report.pdf) makes for a happier, safer, and more productive society. Furthermore, [the environment and financial stability](https://www.federalreserve.gov/econres/notes/feds-notes/climate-change-and-financial-stability-20210319.htm) are connected, and most of the above issues are primarily controlled by the private sector.

**What power do we have as individuals?**

So what does this mean? First, it means that traditional activism can only go so far. For companies to commit to real and lasting change, the pressure needs to come from within. But the good news is that we live in a world where we as individuals have the power to influence the private sector—in addition to monitoring their consumer preferences, [publicly held companies are obligated to listen to the concerns of their shareholders](https://www.investopedia.com/ask/answers/05/shareholderinterest.asp). 

Meaning if you have money, you can buy shares in publicly held companies. And if you can buy enough shares, you can earn a seat at a company’s annual general meeting (AGM) and exercise your [voting rights](https://www.perkinscoie.com/en/chapter-5-proxy-solicitation-and-shareholder-activism.html) on company matters. Just recently, an activist investment advisor  called [Engine No.1 challenged ExxonMobil](https://www.reuters.com/business/sustainable-business/shareholder-activism-reaches-milestone-exxon-board-vote-nears-end-2021-05-26/), [unseating three of its board members](https://www.reuters.com/business/energy/engine-no-1-win-third-seat-exxon-board-based-preliminary-results-2021-06-02/) for failing to sufficiently adjust its strategies in response to the climate crisis, demonstrating the collective power of shareholders.

**Changing our attitudes towards investing**

When combined, the words ‘wall’ and ‘street’ tend to evoke certain wolf-like connotations, and maybe that’s because investing has long been an individualistic or even a competitive pursuit used primarily to make money back for investors. But suppose we change our mindset when it comes to investing? In that case, we may increase the effectiveness of the third sector, including major charities and activist organisations, by using this existing system to force change. 

Investing could be about more than just you - it could be about investing in our society and making a better future. Rather than making your money just work for you, you could make your money work for everyone - a more conscious way of investing or investing with a conscience. The good news is you don’t have to be rich to have an impact. All it takes is a lot of people with just a little bit of money.

Innovations such as [Tulipshare’s](https://tulipshare.com/) platform are specifically designed for activist investment, making it easier for individuals to invest, collectivize and put pressure on corporations. You provide the desire for change by investing behind one of our campaigns, and we’ll provide the Trojan horse that seeks to sneak past corporate blockades.

Because, ultimately, companies are better off investing in the future, not just their short-term profits. 

*Read more about Tulipshare’s ongoing campaigns to promote change within these companies [here](https://tulipshare.com/).


What is Activist Investing or Shareholder Activism?

We're asking for big banks to come up with climate solutions - check out our campaigns

This week we spoke to Matt Winning about climate change and COP27 on our podcast The Activist Investor. Here is an excerpt from that interview. You can also listen to the whole episode here (or wherever you get your podcasts).

We caught up with comedian and climate scientist Matt Winnings about COP27 and climate change progress

Podcast - Discussing Climate Change and COP27 With Comedian and Climate Scientist Matt Winning | Tulipshare

Discussing Climate Change and COP27 With Comedian and Climate Scientist Matt Winning

Join us in asking McDonald's to rethink their plastic packaging

Gone are the days when campaigners needed to stand on the street with placards to make their voices heard. Instead, activist investing enables campaigners to use the stock market to influence policy at companies around the world. Here’s how it works. 

Why should campaigners care about the stock market? Find out on Tulipshare's blog.

Blog - Why Should Campaigners Care About the Stock Market? | Tulipshare

## Why is the stock market so important? 

The [roots of the stock market](https://www.investopedia.com/articles/07/stock-exchange-history.asp) can be traced back to Venetian money lenders in the 1300s before the first official exchange was established in Belgium in the 1500s. Since then, the stock market has played an integral role in economies and, therefore, countries worldwide. The fundamental role of the stock market is to enable publicly listed companies to generate capital for their expansion. Without stock markets, companies would have to turn to financial institutions to raise the capital required for growth. 

But individuals also benefit from the stock market. Astute investments in the right companies can yield a significant return on an initial investment. In fact, the average stock market return on the S&P 500 over the course of the last century is [10%](https://www.nerdwallet.com/article/investing/average-stock-market-return) per year, before inflation. (However, it’s worth noting that this is based on a past performance and does not guarantee future results) As such, the stock market doesn’t only enrich some of the largest companies on the planet, it also provides individual investors with the opportunity to see significant returns on their investments. 

## What does this mean for campaigners? 

Societal campaigners are integral to the way the world works. Be it civil rights or climate justice campaigns, the collective voice of the people is crucial when it comes to influencing government or corporate policy that often puts profit and self-interest above all else. While campaigners often make their voices heard through peaceful (and in some instances, violent) protests, there’s another way to campaign for change - **economic protest**. 

As mentioned, the stock market is the primary way in which the world’s largest companies raise capital to fund their growth and expansion. In exchange for capital, companies provide investors with a vote to be cast at the annual shareholder meeting to shape company policy. Typically, most investors who own shares of common stock are entitled to one vote per share. Theoretically, if campaigners were to amass a sufficient number of shares within a company, they could potentially influence policy from within, and the company would have no choice but to listen and take action. 

## How can campaigners influence the stock market? 

Rather than standing outside the corporate offices of a company with placards and megaphones, campaigners can now ‘get inside’ the building. Activist investing enables campaigners to collectively buy shares in a company, which platforms such as Tulipshare can then use to shape policy and drive change by casting their votes. At Tulipshare, we have launched campaigns to influence policy at the likes of [Coca-Cola](https://www.tulipshare.com/stocks/KO), [JPMorgan](https://www.tulipshare.com/stocks/JPM), [Apple](https://www.tulipshare.com/stocks/AAPL), and [Amazon](https://www.tulipshare.com/stocks/AMZN). By leveraging the collective shares of our investor community, we initiate conversations with the company to promote ethical and sustainable change from within.

We believe in the incredible power of activist investing and are confident that it will alter the landscape of campaigning for years to come. For more information about how activist investing works and how campaigners can use the stock market to their advantage, check out our [blog](https://www.tulipshare.com/blog) and learn about the possibilities of ethical investments. 

Why Should Campaigners Care About the Stock Market?

Paypal is challenging our proposal on ending financial discrimination,

Have you ever wanted to better understand your favourite company’s ESG goals? Or how to effectively validate ESG-related objectives of the most influential global businesses?

Read more to learn how to better understand your favourite company’s ESG goals and effectively validate ESG-related objectives of the most influential global businesses.

Blog - How to Research and Validate a Company's ESG Goals | Tulipshare

*Before we get started, though, it’s important to note that we at Tulipshare are not financial advisors and the content of this article is for information purposes only.*

**Why is it important to research and validate company goals?**

We are all consumers and are a lot more powerful than we think. With power, comes responsibility - responsibility to research companies we are giving our money to and align our spending habits with our ethics. 

It’s important to not take things at face value, especially when it comes to companies’ ESG goals. For starters, ESG-related legislation is still in its infancy stage, meaning that companies can get away with not meeting self-prescribed and legislatively unenforceable goals. Also, many companies think that they can do the bare minimum and set themselves ambiguous targets with unspecified deadlines. 

Activists, retail investors and consumers can ensure companies are held accountable and exert their influence by backing shareholder proposals aiming to improve a company’s ESG strategy - and ditch organisations that aren’t doing enough.  

**How to research and validate company goals?**

Now that we’ve established why it’s important to research and validate company ESG goals, let’s consider how to do it well. Looking at long reports can be intimidating but that’s why we have put together eight steps to help you get started. 

- **Identify what you’re looking for.** To get started, decide what company you want to research and establish issues that interest you. For example, if you want to research an apparel and footwear brand, you may want to learn more about their supply chains and how they treat their workers. Write down some starter questions that will guide your research process and help you identify gaps in the information that’s publicly available. 

- **Start with the company’s website.** Start by checking their ESG and Corporate Responsibility pages, look out for words like ‘mission’ and ‘values’ to understand what the company’s credo is. This will help you determine whether the company is living up to its commitments. You can narrow down your search by using specific terms, such as ‘diversity and inclusion,’ ‘pay equity,’ 'climate transition ' or ‘deforestation’ depending on your research objective. Keep an eye out for reports and visit the ‘investors’ page to see annual general meeting (AGM) reports and proxy statements. 

- **Find current information.** Reviewing the most up to date information helps you to understand what the company is doing momentarily to address an ESG-related issue. 

- **Compare company goals and achievements through the years.** If an organisation makes a commitment to an ESG-related issue, it’s useful to track its progress by comparing present and past reports (no need to go back more than 3-5 years). With this information, you can validate the company’s goals. Look out for statistics, NGO partnerships, short-term goals, multiple breakdowns of information and scientific-backing. Remember that ambiguous statements aren’t valid goals.

- **Deadlines.** Like any goal, companies’ ESG objectives should have deadlines. In fact, you should be able to determine whether goals are short-term, medium-term or long-term goals. Short-term goals usually take a year to achieve, medium-term goals take between one and five years, and long-term goals take more than five years.  

- **Competitors.** Take the opportunity to understand how other industry players are addressing and managing ESG-related issues. Notice how company responses to certain topics differ and how their actions compare. 

- **Read the news.** Keep up to date with recent news stories on companies and ESG-related topics because this is where you will find criticisms. 

- **Read NGO reports.** Identify the top NGOs in specific ESG-related issues and read their reports/studies. By doing this you will learn more about companies’ shortcomings and the overall condition of certain ESG-related issues. 

**So, now over to you…**

Researching and validating company goals takes some practice, but by keeping in mind the eight steps mentioned above, you will start noticing patterns and evaluating the effectiveness and legitimacy of company goals. 




How to Research and Validate A Company's ESG Goals

Check out our campaign at luxury fashion group, Capri Holdings

While people gathered in London and Milan for fall 2022 fashion weeks, leaders from across the world convened with climate experts in New York to discuss pathways to curb global warming at the UN General Assembly and Climate Week.

Blog - Fashion Week vs. Climate Week: What Trends Are On the Horizon

The beginning of autumn marks the start of a new fashion season for many; but have you ever wondered how the continued trends of climate change impact the latest wardrobe trends? This summer was filled with weather extremes - from [floods in Pakistan](https://news.un.org/en/story/2022/09/1127051) to [drought in Texas](https://www.texastribune.org/2022/08/19/texas-drought-water-conservation/) - and extreme weather is mixing with political upheaval, economic challenges, and trade tensions to [threaten supply chains](https://www.reuters.com/article/us-climate-change-cotton-farming-trfn/cotton-industry-unprepared-for-climate-change-threat-to-crop-and-farmers-idUSKCN2DZ15D) and the availability of widely used textiles like cotton.

Global climate summits such as the [UN General Assembly and Climate Week](https://www.climateweeknyc.org/) present a major marketing opportunity for corporations to proclaim their commitments to environmental goals - fashion companies included - but commitments this year were noticeably sparse. The lack of climate centric commitments illustrates the limitation of voluntary corporate action, and shows that easing the fundamental tension between what is good for revenue growth and what is good for the environment is the [biggest challenge](https://www.businessoffashion.com/articles/sustainability/fashion-lower-climate-impact-selling-less-products-degrowth-decouple-grow-sustainability/?utm_source=newsletter_sustainability&utm_medium=email&utm_campaign=Sustainability_230922&utm_content=intro) to fashion’s sustainability efforts.

## Garment workers are set to bear the brunt of climate change

With much of fashion’s outsourcing going to the countries across Asia, it’s also the citizens of those same Asian countries who will be bearing so much of the brunt of climate change - climate change that is caused in part to heavy consumerism across the West. 

This means that the large number of garment workers in these countries - most of whom are already poorly paid - will be facing [tougher economic challenges](https://www.trtworld.com/magazine/workers-across-asia-feel-the-heat-of-fast-fashion-s-carbon-footprint-57654) and have less security to see them through. Yet, little is being done to improve their outlook in the face of climate change, despite many fashion brands enjoying record breaking profits which have allowed them to pay dividends to shareholders. 

What’s more, during the Covid-19 pandemic outlook for garment workers [significantly worsened](https://knowthechain.org/wp-content/uploads/2021-KTC-AF-Benchmark-Report.pdf), with many falling victim to [wage theft](https://www.workersrights.org/wp-content/uploads/2021/04/Fired-Then-Robbed.pdf) as factories unexpectedly shut. This has created mounting debts for families already [unable to afford](https://www.theguardian.com/global-development/2021/dec/16/worst-fashion-wage-theft-workers-go-hungry-as-indian-suppliers-to-top-uk-brands-refuse-to-pay-minimum-wage) a decent standard of living, making garment workers even more vulnerable to increasingly common climate catastrophes.

## How to be a trendsetter

In the face of such economic inequality it is  important now more than ever to vote wisely with our money, whether that be through the purchases we make or the investments we choose. 

Understanding the impact of our consumerism is the first step to making wise consumer choices, and understanding the governance behind major corporations who profit from our consumerism is the first step to voting with our investments. 

When it comes to investments, check out our [Nike](https://tulipshare.com/campaigns/NKE?utm_source=blog&utm_medium=blog&utm_campaign=fashionweekvclimateweek) and [Capri Holdings](https://tulipshare.com/campaigns/CPRI?utm_source=blog&utm_medium=blog&utm_campaign=fashionweekvclimateweek) campaigns to see how becoming a shareholder in these companies could change the outlook for garment workers across the world. Just remember that when investing your capital at risk, meaning the value of your investments can go up as well as down.







Fashion Week vs. Climate Week: What Trends Are On the Horizon

If you want to participate in a company’s annual general meeting (‘AGM’) you need to hold your shares before the company’s ‘record date’. Here’s a list of upcoming record dates for the 2023 season. 

If you want to participate in a company’s annual general meeting (‘AGM’) you need to hold your shares before the company’s ‘record date’. 

Blog - Campaigns You Still Have Time to Support This AGM Season | Tulipshare

We are always engaging with companies around our campaigns regardless of whether or not the company’s AGM is coming up or not. But if you do want to vote in a company’s AGM you need to hold your shares before the company’s record date - which is a type of cut-off date.

## Here are the record dates still on the horizon for our campaigns

Please note that the following dates provided are estimates - we won’t know exact record dates until the company releases their proxy statement. We have made our estimates based on last year’s records dates.

[McDonald's](https://tulipshare.com/campaigns/MCD?utm_source=organic&utm_medium=blog&utm_campaign=2023_record_dates) - 28th March 2023

[Morgan Stanley](https://tulipshare.com/campaigns/MS?utm_source=organic&utm_medium=blog&utm_campaign=2023_record_dates) - 28th March 2023

[Chevron](https://tulipshare.com/campaigns/CVX?utm_source=organic&utm_medium=blog&utm_campaign=2023_record_dates) - 28th March 2023

[Skechers](https://tulipshare.com/campaigns/SKX?utm_source=organic&utm_medium=blog&utm_campaign=2023_record_dates) - 28th March 2023

[BlackRock](https://tulipshare.com/campaigns/BLK?utm_source=organic&utm_medium=blog&utm_campaign=2023_record_dates) - 28th March 2023

[Amazon](https://tulipshare.com/campaigns/AMZN?utm_source=organic&utm_medium=blog&utm_campaign=2023_record_dates) - 31st March 2023

[ExxonMobil](https://tulipshare.com/campaigns/XOM?utm_source=organic&utm_medium=blog&utm_campaign=2023_record_dates) - 1st April 2023

[Meta](https://tulipshare.com/campaigns/META?utm_source=organic&utm_medium=blog&utm_campaign=2023_record_dates) - 1st April 2023

[Netflix](https://tulipshare.com/campaigns/NFLX?utm_source=organic&utm_medium=blog&utm_campaign=2023_record_dates) - 4th April 2023

[PayPal](https://tulipshare.com/campaigns/PYPL?utm_source=organic&utm_medium=blog&utm_campaign=2023_record_dates) - 5th April 2023


[Alphabet](https://tulipshare.com/campaigns/GOOGL?utm_source=organic&utm_medium=blog&utm_campaign=2023_record_dates) - 5th April 2023

[Caterpillar](https://tulipshare.com/campaigns/CAT?utm_source=organic&utm_medium=blog&utm_campaign=2023_record_dates) - 13th April 2023

[Salesforce](https://tulipshare.com/campaigns/CRM?utm_source=organic&utm_medium=blog&utm_campaign=2023_record_dates) - 14th April 2023

[Restaurant Brands International](https://tulipshare.com/campaigns/RBI?utm_source=organic&utm_medium=blog&utm_campaign=2023_record_dates) - 20th April 2023

[Biogen](https://tulipshare.com/campaigns/BIIB?utm_source=organic&utm_medium=blog&utm_campaign=2023_record_dates) - 21st April 2023

[Mastercard](https://tulipshare.com/campaigns/MA?utm_source=organic&utm_medium=blog&utm_campaign=2023_record_dates) - 22nd April 2023

[Carmax](https://tulipshare.com/campaigns/KMX?utm_source=organic&utm_medium=blog&utm_campaign=2023_record_dates) - 22nd April 2023

[Capri Holdings](https://tulipshare.com/campaigns/CPRI?utm_source=organic&utm_medium=blog&utm_campaign=2023_record_dates) - 6th June 2023

[Nike](https://tulipshare.com/campaigns/NKE?utm_source=organic&utm_medium=blog&utm_campaign=2023_record_dates) - 8th July 2023

[Procter & Gamble](https://tulipshare.com/campaigns/PG?utm_source=organic&utm_medium=blog&utm_campaign=2023_record_dates) - 12th August 2023

[Microsoft](https://tulipshare.com/campaigns/MSFT?utm_source=organic&utm_medium=blog&utm_campaign=2023_record_dates) - 12th October 2023

[Post Holdings](https://tulipshare.com/campaigns/POST?utm_source=organic&utm_medium=blog&utm_campaign=2023_record_dates) - 12th November 2023

Worth reminding that **every share purchased through the Tulipshare platform does come with voting rights attached**. We cannot guarantee that shares purchased through other platforms will come with voting rights, however, so if you already own shares in a company you should check through your brokerage firm about if and how you can vote.

Please remember that capital is at risk if you decide to invest, meaning the value of your investments can go up as well as down.




Campaigns You Still Have Time to Support This AGM Season

See what we're asking Jimmy Choo to do...

See which big institutions blocked shareholder proposals - and whether they're voting consistently -  in our newly-released report.

Our new report gives a breakdown of how the top financial institutions voted at this year's AGMs.

Blog - New report by Tulipshare: Shareholder Activism Year in Review | Tulipshare

Shareholder activists have worked hard this year to create key environmental and social justice changes. But their actions are often blocked by big institutional investors. Our report looks at where the opposition is occurring, and whether it's consistent. Curious to know which major institutions supported environmental and ethical proposals?

Here are some key takeaways:

- On average, the top ten institutions only supported shareholder proposals 7.5% of the time.

- Institutions are voting inconsistently across portfolios. This makes it harder for investors to know if their investments are being governed by their values.

- Votes from retail investors have grown by 110% year on year, as individuals increasingly gain access to cast their own votes rather than relying on institutions to vote for them.

- Over 18 million UK savers want their pension scheme to encourage companies to reduce their carbon emissions this AGM season.

We’ve collated all of our findings on this handy [web page](https://howtheyvoted.tulipshare.com/), which details our findings. This information is so vital for us shareholder activists, as it helps us to understand the progress being made.


New Report by Tulipshare: Shareholder Activism Year in Review

For many people, buying shares is not often associated with progressive change. However, here at Tulipshare, we like to do investing a little differently. 

From advocating for the rights of Amazon workers to improving the Apple repair service, our activist investing makes a difference. Explore on Tulipshare.

**Our activist investing ethos helps those committed to progressive change to invest in company stocks and leverage shareholder rights to make their voices heard. But how exactly do you buy shares and use them for change?**

### What is activist investing?

First things first, let’s go a little deeper into what activist investing is. Activist investing is the act of investing money into publicly traded companies and using your shares to influence how the companies are run. At [Tulipshare](https://tulipshare.com/), we’re bringing activist investing to retail investors, allowing you and other like-minded investors to buy shares in the companies targeted in our ESG-focused campaigns. By doing this, we can unify individual voices into a collective movement around a common goal, giving us a seat at the table to advocate for meaningful changes to company policy. We engage in direct dialogue with companies and submit and/or support related shareholder proposals which are then voted on at annual shareholder meetings. You can also read a little bit more in-depth about activist investing [here](https://tulipshare.com/blog/what-is-activist-investing-or-shareholder-activism). 

### How do I buy shares?

At Tulipshare, we strive to make buying shares super easy, in order to help as many investors jump on board with our campaigns as possible.

Investing on the Tulipshare platform starts by [signing up](https://tulipshare.com/signup) with a secure email and password while agreeing to our terms and conditions. In the next few steps, you’ll be asked to provide some personal information to allow us to conduct our onboarding and due diligence checks, as required by regulators.  After providing, you’ll be shown the [Tulipshare dashboard.](https://tulipshare.com/dashboard) This will be your hub for all things activist investing, presenting you with our latest campaigns and any extra help you might need. Once you’ve completed your registration, you can start uploading funds, converting them to USD, and start investing your money into our live campaigns.  You can also keep track of campaign updates by subscribing to our email newsletter, following one of our [social media accounts](https://twitter.com/tulipshare), or checking our [website](https://tulipshare.com/blog) for news. It really is as simple as that.

### What impact can I have?

When buying shares individually, your impact as an activist is limited, but when buying them with other like-minded investors, we can amplify your voice. Here are just a few examples of the campaigns we’ve been running so far:

#### [Apple](https://tulipshare.com/stocks/AAPL)

Every year the world throws away around [53 million tonnes of electronic waste](https://repair.eu/). One of our longest-running campaigns is to push Apple to adopt a fair and accessible Right to Repair policy that allows for and encourages customers to keep their devices and repair them.  

With nearly $40,000 invested behind our Apple campaign, Tulipshare now has enough shares to submit a shareholder proposal. Meanwhile, Apple have recently released their first ever Self Service Repair Program, but [we have identified gaps](https://tulipshare.com/blog/apple-self-service-program-still-misses-the-mark) within the new program that still need to be addressed. We are currently in conversations with Apple’s IR team and plan to continue to engage and press for further improvements to its repair service. 

#### [Amazon](https://tulipshare.com/stocks/AMZN)

There have been continuing reports of Amazon warehouse workers being subjugated to [unsafe working conditions](https://www.nbcnews.com/business/business-news/amazon-worker-deaths-tornados-raise-questions-tornado-training-cellpho-rcna8570). 

Our activist investment campaign is attempting to ensure safe and fair working conditions for Amazon warehouse workers. With over $10,000 invested and 2,442 people interested, we’re well on the way to advocating for Amazon warehouse workers on your behalf.

Remember - if you have a new campaign idea for a cause you’re particularly passionate about, don’t hesitate to shoot a suggestion our way. Whether it’s improving the state of our oceans or improving the treatment of employees in certain corporations, we would love to hear about any new ideas you have in mind.

Ultimately, redefining how people invest their money is what Tulipshare is all about. If you’re looking to make a meaningful impact on the world and push towards progressive change, sign up with Tulipshare today. Complete your registration and you can even get a free £10 to invest in a campaign of your choice!



How to Buy Shares in a Company and Use Them for Change 

The 1950s and 60s brought us a lot of amazing things: television, Elvis, a moon landing, The Beatles. It also brought a lot of plastic.

Here are five things you should know about plastic, and some things you can do to help sort through the mess.

And at first it seemed like another one of those amazing things: great for convenience, food hygiene, and great for production costs. Plus, it could be recycled! It quickly became something most people couldn’t imagine living without.

Well, spoiler alert, plastic has gone bad. We’ve all seen the pictures of the landfills bursting at the seams with plastic or the [sea turtle getting a plastic straw removed from its nose](https://www.youtube.com/watch?v=vJmi_gwziy4). We’ve watched loveable comedians stage [funny stunts](https://www.youtube.com/watch?v=_pLyqPc3NGg) to highlight some mischievous recycling rules. And we’ve all had to listen to that guy at a party telling us that recycling doesn’t work or that “[it all just ends up in China](https://www.forbes.com/sites/kenrapoza/2021/01/10/china-quits-recycling-us-trash-as-sustainable-start-up-makes-strides/?sh=26f378d5a567).”

But here are five things you should know about plastic, and some things you can do to help sort through the mess.

### 1. More than 99% of plastic is produced from fossil fuels

We love to conveniently forget that plastic production is inextricably tied to one of the [top producers of greenhouse gases](https://350.org/science/?gclid=CjwKCAiAvriMBhAuEiwA8Cs5lcGAZ70J814mfpa1JA8z2d6ACkydQmp9RlJCkxCFj3qVEKf-P-mhSBoC59QQAvD_BwE): fossil fuels. In fact, [Big Oil companies are starting to rely](https://www.vox.com/energy-and-environment/21419505/oil-gas-price-plastics-peak-climate-change) on plastics to recover some growth, with [ExxonMobil](https://www.sei.org/featured/20-companies-responsible-for-most-single-use-plastic-waste/) already topping the list when it comes to producing global plastic waste. 

And fast-moving consumer goods (FMCG) companies are on hand to drive that demand. You’ll know some of them more colloquially as Coca-Cola, PepsiCo, Proctor & Gamble, Nestlé, and Unilever - and their ‘throwaway culture’ has been made possible by the single-use plastic packaging that we’ve grown so accustomed to. So perhaps it comes as no surprise that, when it comes to plastic pollution, these FMCG companies are [missing the mark](https://www.plasticpollutioncoalition.org/blog/2021/6/22/report-consumer-goods-companies-are-missing-the-mark-with-false-solutions-to-the-plastic-pollution-crisis). 

It’s true, FMCG companies are making some efforts to change, but their main strategy is to deflect all blame by promoting recycling, despite knowing full well that it isn’t the angelic solution we want it to be. They’ve even gone as far as lobbying against single-use plastic restrictions, according to some [reports](https://talking-trash.com/wp-content/uploads/2021/01/TalkingTrash_FullVersion.pdf).

*([headline source](https://www.ciel.org/issue/fossil-fuels-plastic/#:~:text=Over%2099%25%20of%20plastic%20is,in%20the%20US%20and%20beyond ))*

### 2. Plastic is not just dumped in our oceans - it goes into our atmosphere too

[A Greenpeace report](https://prod.greenpeaceusa.info/usa/wp-content/uploads/2021/09/1001_GP_Unpacked_Report_ENG_FINAL.pdf) identified that 1 ton of plastic produces 5 tons of carbon dioxide equivalent ("CO2e"). In an age [where it’s crucial to get down to net-zero emissions](https://unfccc.int/process-and-meetings/the-paris-agreement/the-paris-agreement), this is bad news. Plastic emits greenhouse gases at every stage of production - and that includes during [the recycling process too](https://pubmed.ncbi.nlm.nih.gov/19748943/). Even plastic that sits in landfills doing nothing at all [continues to emit methane gases](https://www.unep.org/news-and-stories/story/double-trouble-plastics-found-emit-potent-greenhouse-gases). It’s estimated that by 2050 emissions from plastics could equate to [13% of Earth’s entire remaining carbon budget](https://www.ciel.org/wp-content/uploads/2019/05/Plastic-and-Climate-FINAL-2019.pdf).

Data from the recent COP26 summit in Glasgow showed that [emissions from plastics](https://www.reuters.com/business/cop/plastics-outpace-coals-greenhouse-gas-emissions-by-2030-report-2021-10-21/) were due to outpace emissions from coal by 2030. It also addressed concerns that petrochemical facilities tend to be housed in low-income areas, wreaking havoc on air quality and [causing notable rises in cancer](https://www.theguardian.com/us-news/ng-interactive/2019/may/06/cancertown-louisana-reserve-special-report) - another issue altogether!

### 3. Only 9% of plastic ever produced since 1950 has been recycled

Recycling is what makes a lot of us feel better about using plastics, and it’s no wonder we think this way - FMCG companies have been using recycling as a ‘[smokescreen](https://resource-recycling.com/plastics/2021/09/15/greenpeace-recycling-used-as-plastic-industry-smokescreen/)’ for promoting plastics for a long time. 

One National Public Radio (NPR) [report](https://www.npr.org/2020/09/11/897692090/how-big-oil-misled-the-public-into-believing-plastic-would-be-recycled) quoted Larry Thomas, the former president of the [Society of the Plastics Industry Association](https://www.plasticsindustry.org/about-us), saying, “if the public thinks that recycling is working, then they are not going to be as concerned about the environment.”

Recent [Greenpeace USA ](https://prod.greenpeaceusa.info/usa/wp-content/uploads/2021/09/1001_GP_Unpacked_Report_ENG_FINAL.pdf)research also claimed that the plastic packaging used by the US’s food and beverage industry had “so little chance” of being recycled that it could put companies at risk of “legal challenge for deceptive marketing.”

This is down to a lot of reasons, but mainly the fact that[ it doesn’t make enough financial sense](https://www.cnbc.com/2021/05/22/is-recycling-a-waste-heres-the-answer-from-a-plastics-expert.html) for plastics to be recycled. In fact, under the current system, it makes more financial sense to continue to expand the use of virgin plastics. This brings us to our next point...

*([headline source]( https://www.no-burn.org/wp-content/uploads/Recycling-is-Not-Enough-online-version.pdf ))*

### 4. Plastic production is expanding

FMCG companies, who have done a great job at getting us to not feel bad about plastics (they’re recyclable!), are driving demand for more virgin plastic production. This is even despite the current concerns for overcrowding in landfills, oceans, and CO2 emissions. And Big Oil companies are [all too happy](https://www.nytimes.com/2020/08/30/climate/oil-kenya-africa-plastics-trade.html) to meet this demand, hoping to use it as a way to boost their profits in the face of all the other crude oil uncertainties. If we changed nothing at all about the plastic industry as it currently operates, it is estimated that plastic pollution [could double](https://news.un.org/en/story/2021/10/1103692) by 2035 and triple by 2050. 

### 5. Companies are failing to reach their single use targets

In addition to expanding the production of plastics, FMCG companies are [failing to reach their single-use targets](https://www.greenbiz.com/article/consumer-goods-giants-failing-plastic-goals-according-ellen-macarthur-foundation), and they aren’t being very transparent about their reporting either. 

[Coca-Cola](https://tulipshare.com/stocks/KO), for instance, has promised to use 50% recycled material in its packaging by 2030. But it made this promise in 2015, the same year it failed to meet its target of using 25% recycled packaging material by 2015. 

As You Sow released a [report](https://www.asyousow.org/press-releases/2020/6/16/companies-fail-to-address-plastic-pollution-crisis-report-finds-no-corporate-leaders-many-laggards) grading the biggest consumer-facing companies and found that the highest grade achieved by any company was a ‘B minus’ by Unilever. The report was graded on six ‘pillars’: packaging design, reusable packaging, recycled content, data disclosure, voluntary support for improving recycling systems, and mandated financial responsibility to improve those systems. Fifteen companies received the lowest grade of ‘F’ - ultimately demonstrating that despite being quick to make promises these big corporations are being far too slow in actually reducing their plastics.

### Here’s what needs to be done

[Greenpeace has outlined](https://prod.greenpeaceusa.info/usa/wp-content/uploads/2021/09/1001_GP_Unpacked_Report_ENG_FINAL.pdf) several achievable goals for companies and consumers alike:

For companies, this includes:

- Setting targets of at least 25% reusable packaging by 2025 and 50% by 2030.
- Phasing out all single-use plastic, not just “virgin” or “new” plastic.
- Collaborating with packaging manufacturers and retailers to standardize reusable packaging.
- Making sure to publicly share sustainable packaging solutions rather than use them to gain a competitive edge.
- Reporting data annually to the public about your company’s packaging. This data should be independently verified and comprehensive, making sure to include knock-on effects on the climate.

For consumers, the list includes:

- Advocating for an ambitious [Global Plastics Treaty](https://www.nationalgeographic.com/environment/article/global-treaty-to-regulate-plastic-pollution-gains-momentum).
- Supporting (and demanding) ambitious regional and national legislation to promote the slow circular economy and extended producer responsibility, ban single-use plastic and fast-track reuse and packaging-free systems. 
- Avoiding companies or organizations that lobby against action to eliminate single-use plastic.
- Putting pressure on governments to support these efforts wherever possible.

There’s a big job ahead making it more important than ever to stay educated and vigilant on the topic of plastic pollution and use [our collective power](https://tulipshare.com) to keep the pressure on corporations. 






Plastic Pollution: Five Things You Need To Know & What You Can Do About It 

We've launched a new campaign asking Nike to improve their supply chain

This month we’re talking about ways that shareholders are using their power to change the world. Today we shine the spotlight on how shareholder activists were able to get HSBC to commit to a coal phase-out plan.

Blog - How Shareholders are Changing the World pt. 3 | Tulipshare

As the most carbon-intensive and ‘dirtiest’ fossil fuel, phasing-out coal is a top priority for slowing the pace of the changing climate. In fact, “all scenarios that meet climate goals feature a rapid decline in coal use,” according to the [International Energy Agency](https://www.iea.org/reports/world-energy-outlook-2021/phasing-out-coal). But phasing out coal is a big job, and needs cooperation from global governments, communities, and companies. As the IEA puts it: “The early involvement of banks and other investors is critical to deal with potential external financial exposures.”

So when shareholders at ShareAction used their combined shareholder value of $2.4tn in stake at HSBC to ask management to phase out finance for the coal industry, it got immediate attention. In fact, HSBC took the lead by preparing its own proposal to phase out coal finance, and ShareAction subsequently agreed to withdraw their resolution and support of HSBC’s plan. 

## Why target coal? 

On surface level, coal appears to be the cheapest option for lighting houses, providing heat, and powering equipment. But the significant health and environmental costs associated with coal production and use mean that, in the long-run, it is far more costly than using other renewable energy sources.

[Studies](https://chemical-materials.elsevier.com/chemical-rd/coal-worst-fossil-fuel-emissions-climate-health-smog/) suggest that: “Per unit of energy produced, coal releases 30 percent more carbon dioxide emissions than oil and 70 per cent more than gas.” 

Still, coal use is [rising](https://energy.stanford.edu/news/qa-stanford-expert-explains-why-we-continue-burning-coal-energy) in developing countries and until proper phase out plans can be installed it will continue to threaten our existence. 

## Why target HSBC?

As of 2019, HSBC was Europe’s [second largest](https://api.shareaction.org/resources/reports/ShareAction-HSBC-Investor-Brief-2021-2.pdf) financier of fossil fuels since the Paris Agreement was signed. Prior to ShareAction’s resolution, they had an almost non-existent coal policy, and - as the shareholders rightly pointed out - coal is not a viable long-term energy solution, especially for low income countries. In fact, the global heating caused by a hundred years of burning coal will likely send 100 million people into extreme poverty by 2030, which is an alarming statistic.

Without a credible plan to transition to clean energy, shareholders successfully argued that the banking giant stood in the way of securing its own future. Such a gaping hole in environmental policies might also risk the bank’s relationship with increasingly-aware customers who might be [likely](https://api.shareaction.org/resources/reports/ShareAction-HSBC-Investor-Brief-2021-2.pdf) to switch to another bank with greener credentials.

## What next for phasing out coal at HSBC?

Jeanne Martin, Senior Campaign Manager at ShareAction, [said](https://shareaction.org/news/hsbc-coal-phase-out-passes-but-the-battle-is-not-won-yet): “We’re delighted that our campaign has resulted in a binding commitment by HSBC to phase out coal, but the devil is in the detail and the next six months are crucial to ensure that this commitment is translated into robust sector policies.”

If HSBC does not satisfactorily meet the requirements agreed upon, then ShareAction retains the right to refile their proposal at the next company AGM.

Next week we'll be learning about how shareholders convinced one huge gas supplier to cut their emissions.



How Shareholders Pushed HSBC to Commit to a Coal Phase-out Plan

As You Sow's ExxonMobil Resolution Has Passed!

Policies designed to stop climate change have been front and centre in the news in recent times. But what can you do at an individual level? 

Here are three effective ways that you can do your bit as far as the planet is concerned. Read our blog to learn more!

## Become an activist investor 

In recent times, climate protestors have captured the headlines for their various stunts. Be it [tying themselves to goalposts during football matches](https://www.skysports.com/football/news/11671/12569533/man-charged-after-tying-himself-to-goal-post-in-protest-during-everton-newcastle) or glueing themselves to busy roads; protestors are looking to diversify their nuisance tactics to demand that the world’s biggest polluters take notice of them. But in reality, we don’t think this is enough to achieve the changes that we need to see as far as climate change is concerned. This is because isolated protests are all too easy for companies and governments to ignore. 

Instead, at Tulipshare, we believe that [activist investing](https://tulipshare.com/blog/what-is-activist-investing-or-shareholder-activism) is the key to driving change from within the world’s most unethical companies. We harness the collective power of shareholder activism to address some of the most critical climate issues that our planet is facing and demand change that companies cannot ignore. 

Currently, we have climate campaigns ongoing with [Coca-Cola](https://tulipshare.com/campaigns/KO), [Google](https://tulipshare.com/campaigns/GOOGL), [McDonald’s](https://tulipshare.com/campaigns/MCD), and[ Apple](https://tulipshare.com/campaigns/AAPL). You now have the perfect opportunity to take positive and effective action while forcing these companies to sit up and take notice of our demands.

## Eat less meat and dairy products 

Our taste for meat and dairy products is extremely bad for the environment, as it leads to water degradation, biodiversity loss, and deforestation. According to [Greenpeace](https://www.greenpeace.org.uk/news/why-meat-is-bad-for-the-environment/), ‘industrial meat’ is roughly equivalent to all the driving and flying of every car, truck, and plane in the world.

 In fact, statistics show that meat accounts for nearly [60% of all greenhouse gases](https://www.theguardian.com/environment/2021/sep/13/meat-greenhouses-gases-food-production-study) from food production, and it’s one of the single biggest contributors to our current climate crisis. While you don’t necessarily have to become a vegan to help protect the planet, it is worth reducing your meat and dairy consumption to alleviate some of the stresses that the planet faces. The [Meatless Monday Campaign](https://www.mondaycampaigns.org/meatless-monday/about) is a great place to start, and it will help you mindfully reduce your consumption of meat by enjoying healthful and delicious alternatives just once a week. 

## Switch to renewable energy sources 

In the UK, millions of households may be forced to pay as much as [£700](https://www.bbc.co.uk/news/business-58090533) more for their electricity and gas this year as a result of the [government’s new energy strategy](https://www.bbc.co.uk/news/uk-politics-60982346). Not only is our reliance on fossil fuels for our energy becoming increasingly exorbitant, but it will also become catastrophic for the planet if we continue with our current rate of consumption long into the future. 

While solar isn’t as viable a solution in the UK as it is in other, warmer climates, the reality is that[ battery energy storage technology](https://www.nationalgrid.com/stories/energy-explained/what-is-battery-storage) is improving in the UK, and there are lots of options available when it comes to switching to renewable energy sources. You can also earn money by switching to solar, as you can sell your surplus energy back to the grid during peak hours. If you can afford the upfront investment, switching to solar for your home or business is one of the best ways to contribute to a greener planet. 

Are you ready to hold some of the world’s most unethical companies to account? Check out our [activist investing](https://tulipshare.com/campaigns) campaigns today and help us have our demands heard before it’s too late for the planet.

What Can We Do To Stop Climate Change?

Check out our campaign to stop the sales of talc-based Baby Powder

Did you know that shareholders have the right to vote on corporate actions, policies, board members, and other issues?

Tulipshare believes voting at company AGMs is an important part of being a shareholder. Read more about how to use your shareholder vote online.

### What is a voting right?

A voting right is the right of a shareholder of a corporation to vote on matters of corporate policy, including decisions on the makeup of the board of directors, say on pay, corporate bylaw changes, issuing new securities, initiating corporate actions like mergers or acquisitions, approving dividends, and making substantial changes in the corporation's operations. It is common for shareholders to voice their vote by proxy by mailing in their response or by relinquishing their vote to a third party proxy voter.

### How do shareholder voting rights compare to voting rights in democratic governments?

First and foremost, it’s important to keep in mind that not all shares have voting rights attached to them. When you’re selecting what platform you invest on you can usually find information on their voting rights through their website. 

Unlike the single vote right that individuals commonly possess in democratic governments, the number of votes a shareholder has corresponds to the number of shares they own. Thus, somebody owning more than 50% of a company's shares can affect a majority of the vote and is said to have a controlling interest in the firm.

In the US, provisions in a private corporation's charter and its bylaws govern shareholders’ rights, including the right to vote on corporate matters. Along with state corporation laws, these provisions may limit the voting rights of shareholders. When a company goes public, shareholder rights are determined by the corporation, but must follow rules and guidelines established by the Securities and Exchange Commission as well as any rules set out by the exchange(s) that list the shares of the company.

### What are shareholders able to vote on? 

Shareholders have the right to vote on corporate actions, policies, board members, and other issues, often at the company's annual shareholder meetings.

Because a corporation’s officers and board of directors (BOD) manage its daily operations, shareholders have no right to vote on basic day-to-day operational or management issues. However, shareholders may vote on major corporate issues, such as changes to the charter or to vote in or out members of the board of directors. Although common shareholders typically have one vote per share, owners of preferred shares often do not have any voting rights at all.

### What are the eligibility requirements to vote? 

Typically, only a shareholder of record is eligible for voting at a shareholder meeting. Corporate records will name all owners of outstanding shares along with a record date preceding the meeting. Shareholders not listed in the record on the record date may not vote.

### If I own fractional shares, will I be able to vote on Tulipshare? 

Yes. DriveWealth, the carrying broker for brokerage services provided by Tulipshare, uses Say Communications, LLC (“Say Communications'') to facilitate the extension of voting rights to Fractional Shares. When you vote your interest in a Fractional Share, Say Communications will add the fractional position voted by you to the aggregate vote total for all shares of such security reported by Say Communications on behalf of DriveWealth to the applicable vote tabulator (“Tabulator”) for the meeting or shareholder event. 

### If I own fractional shares on other platforms, will I be able to vote? 

It depends on the brokerage firm's fractional share investing program. Also, each company has its own voting requirements. You most likely don't get a vote with a fractional share; and you can't aggregate (pool) shares to have a vote. We suggest reaching out to the brokerage platform that you use to learn more about their policies and procedures. 






Everything You Need to Know About Voting as a Shareholder

Activist investing is a form of investing that is beginning to gain significant traction.

People are waking up to the realisation that we can all do more to improve the world around us. But how can we harness activist investing to change the world for the better? 

## What is activist investing?

Activist investing is the practice of buying a large amount of a company's stock with the goal of gaining influence and pressuring the leadership team. It’s a form of direct action and is a tried and trusted way for investors to make real change even in the world’s largest corporations. Tulipshare is approaching activist investing a little differently, with targeted campaigns and collectivising like-minded activist investors. Some of Tulipshare’s activist investing campaigns have targeted the practice of [Apple](https://tulipshare.com/campaigns/AAPL), [Amazon](https://tulipshare.com/campaigns/AMZN), [Coca-Cola](https://tulipshare.com/campaigns/KO), and [JPMorgan Chase](https://tulipshare.com/campaigns/JPM). We lobby for positive change within companies using this unique strategy. 

## How can activist investing change the world for the better? 

Fundamentally, activist investors are able to drive change from within a company, as they take up positions as concerned shareholders (as opposed to concerned citizens on the outside looking in). By leveraging shareholder rights, they can make a board of directors sit up and take notice. But what are activist investors motivated to achieve?

## More focus on ESG investing

[ESG investing](https://tulipshare.com/blog/what-is-ESG-investing) has [integrated](https://corpgov.law.harvard.edu/2021/05/29/shareholder-activism-and-esg-what-comes-next-and-how-to-prepare/) into shareholder activism in that activist investors are increasingly motivated to transform environmental, social, and governance practices within the firms they invest in. We have seen numerous examples of this in recent times. For instance, activist investor [Engine No.1 spent $12.5 million to win three board seats](https://www.reuters.com/business/little-engine-no-1-beat-exxon-with-just-125-mln-sources-2021-06-29/) at ExxonMobil in 2021 - one of the most groundbreaking acts of activist investing we’ve seen. 

The main reason that Engine No.1 took action was a direct result of the company’s inattentive response to climate concerns. The team at Engine No.1 are seeking to put pressure on ExxonMobil to initiate a clean energy strategy, something that is of paramount importance if we’re to achieve our collective climate change targets, as [outlined at COP26](https://ukcop26.org/) last year.

By utilising their positions as shareholders, activist investors can have the opportunity to drive environmental and social change within the biggest - and most irresponsible - companies on the planet. We feel that if activist investing were to become more widespread, we could potentially see a huge swing in favour of more sustainable practices at companies with a poor environmental track record. 

Activist investing with [Tulipshare](https://www.tulipshare.com/) provides retail investors with the perfect opportunity to work together to bring about collective change. We have designed our campaigns so that everyone can get involved, no matter how big or small the contribution is.

## Hold management to account and influence policy 

Once an activist investor has a stake in the company that they wish to transform, they typically set about their work for a finite period until their task is complete. In almost all instances, activist investors want to hold the board of directors to account and influence company policy in some way. 

Investors can achieve their aims through launching media campaigns, participating in proxy votes, and using litigation to drive change at the company from the inside. Huge companies are often more than happy to ignore outside noise from demonstrators, but they can’t ignore their shareholders so easily. Because of the transformative nature of activist investing, socially conscious investors have the opportunity to change the world for the better by putting pressure on various companies, particularly in relation to their environmental and social policies.

## Ready to get involved in activist investing? 

If you’re keen to make a positive change in the world, then activist investing is an excellent way to go about it. All you have to do is to [sign up for an account with Tulipshare](https://tulipshare.com/signup) and browse through our current campaigns. 

Equally, if you’re passionate about a particular campaign that we’re not currently involved in, feel free to send it our way, and we will be more than happy to look into it. 

How Can Activist Investing Change the World?

Find out more about our JP Morgan campaign

Some dual-class share structures can potentially distort voting rights within corporations and make it more difficult for high-equity stakeholders to influence governance. But what does this mean for activist investors? 

What do dual-class share structures mean for activist investing? Find out on the Tulipshare Blog

Blog - What are Dual Class Share Structures? | Tulipshare

## What are dual-class share structures? 

A dual-class share structure (DCSS) is a financial arrangement that sees the issuance of two shares in the same company. The critical distinction is that one type of share has more power than the other, so they’re not equal.  

The holder of the more powerful share in a DCSS can obtain disproportionate voting rights when their financial interest is considered. In theory and by definition, a DCSS arrangement goes against the [one share, one vote policy](http://eprints.lse.ac.uk/69545/1/Burkhart_One%20share%20-%20one%20vote%20the%20theory_author_2008%20LSERO.pdf).

Sometimes referred to as [super-voting shares](https://www.investopedia.com/ask/answers/company-multiple-share-classes-super-voting-shares/), a DCSS is comprised of Class A and B shares, with the former typically superior to the latter. However, this is not always the case, and the converse could be true, depending on how the stocks are listed. Furthermore, it is worth bearing in mind that DCSS is more often used in respect to liquidity too, not just voting rights.

Berkshire Hathaway - Warren Buffet’s company - deals in dual-class stock structures. Crucially, this enables founders, executives, and family members to control most of the voting power without having the equity to match. This is fairly standard practice, as those that built the company do not want to lose control and seek to protect their interests and management. This is done by establishing preference rights.

Another example is Ford, which gives the family control of [40% of the voting power](https://s23.q4cdn.com/799033206/files/doc_financials/proxy/Ford-2021-Proxy-Statement-April-2021.pdf), in spite of their ownership of a small amount of the company’s equity. 

## Why are dual-class stocks controversial? 

In many respects, dual-class stock structures exist against standard investment practices. Those against DCSS argue that the arrangement enables a small group of individuals to retain control of the company, potentially against the will of the majority shareholders. 

However, those who are in favour of the arrangement suggest that it supports founders to retain control over their companies. This is seen to help prioritise the company's long-term interests and reduce the likelihood of a takeover through a supermajority vote. Dual shares are regularly a feature of seed investment too and can be used as a method of enticing investors to invest at the seed stage (despite being notoriously risky). On top of seed investment, share conversion is another benefit investors can take from dual shares. For instance, if the company in question is successful and manages to go public, their interests are enhanced and protected thanks to the high risk initial investment.

Ultimately, whether you regard DCSS as controversial depends on the side of the fence that you sit on. But what does their existence mean for activist investors? 

## What do dual-class share structures mean for activist investors?

[Activist investing](https://tulipshare.com/blog/what-is-activist-investing-or-shareholder-activism) allows investors to put their money into publicly traded companies before influencing corporate governance by utilising their voting rights. When done correctly, activist investing campaigns could potentially achieve seismic changes in some of the world’s largest corporations.

However, when it comes to dual-class share structures, companies are protected to a certain degree from activist investing, despite proposals still being able to be made. This is because it’s much more difficult for activist investors to secure sufficient voting power in these companies to influence change at the top. 

To use Ford’s example once more, the family controls 40% of the voting power of the entire shareholder base. This generally provides them with a much larger amount of power to help protect the company from activist investor proposals (which can still be submitted and noise still be made).  

Due to the controversial nature of dual-class share structures, several [high-profile sources](https://hbr.org/2018/12/should-dual-class-shares-be-banned) have called for them to be banned. It will be interesting to monitor the future landscape of dual-class share structures and whether or not it becomes easier for activist investors to take action. 

For more information about activist investing, learn how Tulipshare is [leveraging the power of shareholders](https://tulipshare.com/) to seek changes in companies, including Coca-Cola, JPMorgan, and Johnson & Johnson.


Dual-Class Share Structures: What Do They Mean for Activist Investors?

Forcing the world’s largest corporations to change their ways isn’t easy. The way multiple companies treat their staff can be derisible at best, and inhumane at worst. But what can be done about it? 

Here are five ways that we think labour rights can be influenced at some of the biggest companies on the planet.

**#1: Activist investing**

At Tulipshare, we believe the best way to achieve change within the world’s most influential international corporations is to drive change from within. [Activist investing](https://tulipshare.com/blog/what-is-activist-investing-or-shareholder-activism) allows us to leverage the power of shareholders to bring about changes we want to see in workplace practices. 

Our [Amazon campaign](https://tulipshare.com/stocks/AMZN), for example, is fighting for an independent audit of the working conditions faced by warehouse employees. By investing your money through Tulipshare you can help our campaigns and efforts to seek better rights for the people mistreated by corporations. By working together we believe we’re much more likely to see the changes that we so desire. 

It’s all too easy for the likes of Amazon, Coca-Cola, and Apple to ignore protests from the outside. But when shareholders put pressure on them from within, they have no choice but to listen to us. While we think activist investing is one of the best ways to bring about an improvement in labour rights, the following four actions could also contribute to the cause. 

**#2: Stronger unions**

In the United States, where most of the world’s biggest corporations have an active workforce, strengthening unions can help employees bargain for better rights. Unions support individuals to come together to enact change and are a way of giving the voiceless a say in the way they are treated. If mistreated labour force within the world’s biggest corporations felt supported, then they’d be much more likely to take action to improve their situation. 

**#3: Public campaigns**

Public campaigns are designed to make corporations sit up and take notice of what they’re being told from the outside. Public campaigns are a big part of the [International Labour Organization’s](https://www.ilo.org/ipec/Campaignandadvocacy/lang--en/index.htm) strategy, with various projects throughout the year dedicated to bringing about changes in certain labour markets. However, they can often fall short of making meaningful change, especially when companies make promises to appease a campaign objective when they don’t actually intend to deliver on the promises. In an environmental context this is often referred to as greenwashing.

**#4: Additional protection for workers in non-traditional work arrangements**

So many workers employed in factories at Amazon and other corporations are involved in [non-traditional work arrangements](https://www.ncci.com/SecureDocuments/QEB/II_Insights_QEB_2019_Q2_Drilling_Down.html). While such arrangements vary, they typically: 

- Have volatile and unpredictable work schedules  
- Are excluded from overtime and paid leave
- Can’t access employee benefits including health insurance (in the US) 
- Don’t receive pension payments 

While some people - such as freelancers in the gig economy - choose to operate in non-traditional work arrangements, factory workers often don’t have a choice. They are the easiest labour market to exploit. 

Policymakers need to do more to prevent the exploitation of corporation workers in non-traditional work arrangements. While the UK has made improvements in supporting [Zero-Hour Workers](https://www.gov.uk/contract-types-and-employer-responsibilities/zero-hour-contracts), a lot more is needed to be done on a global scale to help those most at risk of exploitation in the workplace. 

**#5: Support for whistleblowers**

When people come forward to report violations of labour laws, their position with their current employers often becomes untenable. This is particularly the case with low-income workers. In most states in America, for instance, there is no such thing as [anti-retaliation protection](https://www.americanprogress.org/article/11-things-state-local-governments-can-build-worker-power/) for low-income workers who speak out against their employers. If people are to have the confidence to speak out against malpractice, then it’s incumbent on governments to protect them and their livelihoods.

**Ready to bring about change?** 

Tulipshare is a platform designed to make your voice heard. Our targeted campaigns have been designed to bring about real change in the world. If we’re successful, then we can expect to see significant changes in the practices of many of the world’s biggest corporations. 

Spend some time looking through our campaigns today, or get in touch if you have any questions about our approach to activist investing.

Five Ways Labour Rights Could be Improved at the Biggest International Corporations 

Our fight for fair and safe warehouse working environments at Amazon has not ended!

This week we’re focusing on the board of directors - a pivotal role in any company. Read on to find out how different types of board of directors can impact a company’s governance. 

Read on to find out how different types of board of directors can impact a company’s governance.

The board of directors of a company has a significant impact on the corporate governance of the organisation as well as pretty much all corporate values and the company's direction. 

The impact of the board of directors on corporate governance is influenced by four different aspects: the size of the management board, the makeup of the board, external management, and internal assets.This make-up can determine whether a new policy is accepted and followed, so the knock-on effect is huge for a company’s governance and environmental and social impact. 

Let's examine the composition of the board of directors before delving into their effects on corporate governance. In essence, the board of directors is a group of people chosen by the shareholders to act as their representatives. Both executive and non-executive directors are frequently members of this board of directors. 

[Executive directors](https://www.inpd.co.uk/blog/executive-vs-non-executive-directors#:~:text=Executive%20directors%20must%20manage%20and,and%20meet%20overall%20business%20objectives.) are board members who directly oversee how the business is run. The Chief Executive Officer (CEO) and Chief Financial Officer (CFO) are typically both members of the executive board. 

[Non-executive directors](https://www.inpd.co.uk/blog/executive-vs-non-executive-directors#:~:text=Executive%20directors%20must%20manage%20and,and%20meet%20overall%20business%20objectives.) are people who are not related in any way. Non-executive directors are people who don't directly participate in or manage the company's operations. 

In order to comprehend how this board affects shareholder activism and the proposals we make for better governance, it is important to know that at the Annual General Meetings, this board of directors votes on whether to even accept or reject a specific proposal made by activist individuals, groups, and unions - well before the AGM even comes around.

On the question of whether the board of directors actually works for the company's improvement, there have always been disagreements. As previously mentioned, a few factors affect the board's overall performance and vision, which in turn influences whether or not certain policies are adopted by the business.

Finding out whether the board of directors is closely involved in company operations is the first consideration. As was already mentioned, executive directors are often the company's CEO and  CFO. These individuals are involved directly in management. It's important to note, the board of directors and management often have different goals and interests. As such management may give priority to non-shareholder interests, including the interests of the managers themselves. 

An independent board of director would perform a monitoring role against the company’s management as well as a role of setting the company’s strategy.

A key factor to the success of a board is also considering how many shares each of the board members own. The more shares a person or entity owns, they have more influence and [shareholder democracy tends to take a hit](https://www.dklm.co.uk/site/library/latest/spotlight_corporate_democracy_small_shareholders_take_loss.html). 

Put simply, owning more shares gives these board members more power to sway votes in the direction they want. Our proposal to [Amazon](https://tulipshare.com/campaigns/AMZN) regarding fair and secure working conditions for Amazon warehouse employees serves as a prime illustration of this.

Our proposal lost by a narrow margin  despite [constant reports](https://www.cnbc.com/2022/04/12/study-amazon-workers-suffer-serious-injuries-at-twice-rate-of-rivals.html#:~:text=Getty%20Images-,Amazon%20warehouse%20workers%20in%20the%20U.S.%20suffered%20serious%20injuries%20at,every%20100%20Amazon%20warehouse%20workers.) of dangerous working conditions and unfair treatment worldwide!  And shareholders backed our proposal with a vote of 44%, but due to the fact that a small number of board members owned a significant percentage of shares, the board voted against our proposal and was able to block it. 

Elon Musk, the infamous Twitter king, is well known for influencing votes in his favour. A notorious example of this is when the Institute Shareholder Services (ISS) had urged Tesla shareholders to [remove two directors](https://www.reuters.com/business/autos-transportation/iss-urges-tesla-investors-oppose-re-election-murdoch-kimbal-musk-2021-09-27/), Kimball Musk (Elon's brother), and James Murdoch, due to excessive compensation packages without compelling justification for non-executive members. 

Unsurprisingly, the proposal was turned down. Here’s why:major changes required a supermajority vote of 90 percent in order for the proposal to be approved without Elon's and his insider votes. This meant that in order to override him and his insiders, [90 percent of shareholders would need to vote against](https://www.corpgov.net/2021/10/tesla-2021-elect-each-director-annually/).
 
It becomes nearly impossible to pass a resolution when the board of directors has an excessive power imbalance and a supermajority requirement. In these circumstances, a simple majority standard will ensure that shareholders have fair and equal representation in the company by reducing the influence of shareholders with significant ownership stakes and allowing for more significant voting results. A proposal advocating a simple majority standard was put forth in 2021 and [passed](https://www.corpgov.net/2021/10/tesla-2021-elect-each-director-annually/).

Governance: The Silent G of ESG - A Focus on Board of Directors

Collective action sees people come together to achieve change for the good of others and the world around them. Below, we explore some prominent historical and recent examples before explaining how you can join a collective action campaign today. 

Discover the best examples of collective action throughout history on Tulipshare's blog

Blog - The Best Examples of Collective Action Throughout History | Tulipshare

## What is collective action? 

Collective action refers to actions taken by a group of people based upon a joint decision. For collective action to work, individuals need to work together, and everyone needs to contribute positively towards the agreed goal. It’s not to be confused with individual action, which is steps taken by an individual based upon his or her personal feelings about a situation. Let’s look at collective action in relation to climate change to illustrate this point.

Individual action in regard to climate change would be a case of a person deciding to walk instead of driving, as it’s much better for the environment. However, collective action would be a group of people coming together - the national government, local council, and community volunteers, for example - to implement a green energy project focused on making pavements safer and launching walk-to-work initiatives. While they are both working towards the same outcome, they go about it in different ways. 

## Examples of collective action throughout history 

People have been coming together to take collective actions since the beginning of time. From building the great pyramids in the North African desert to recent global efforts in tackling the Covid-19 pandemic, there are so many instances throughout history when people have come together to take collective action. However, one of the most prominent examples of collective action in recent times has been the global fight against human-induced climate change. 

While nations and companies don’t always sing from the same hymn sheet, there have been innumerable collective actions from around the world that have had a positive impact on human behaviour in relation to our climate. Governments come together at climate agreements - such as the recent [COP26 event](https://www.tulipshare.com/blog/how-to-turn-COP26-into-success) - to discuss collective action and hold one another to account. While we undoubtedly have a long way to go if we’re to secure the sustainable future of our planet, some successful collective actions in relation to climate change include: 

- Sri Lanka’s [Mangrove Conservation](https://www.seacology.org/project/sri-lanka-mangrove-conservation-project/) project brought together stakeholders from various industries to preserve and replant all of the country’s mangrove forests. 

- Rwanda’s [Green Fund](https://unfccc.int/climate-action/momentum-for-change/financing-for-climate-friendly-investment/rwanda-green-fund-fonerwa) sees significant investments in private projects that contribute towards sustainable change in the country.

- British Columbia’s [Carbon Neutral Government](https://unfccc.int/climate-action/momentum-for-change/climate-neutral-now/carbon-neutral-government-program-canada) program saw BC become the first state in North America to take 100% responsibility for its greenhouse gas pollution.

While these three examples illustrate collective action at a national level, we have also seen international collective action when it comes to climate change, but it’s more challenging to measure its success. Only time will tell if ambitious net-zero targets are achievable and whether all stakeholders will work together to achieve the required outcomes. 

## Activist investing as collective action 

There’s a connection between collective action in regard to climate change and [activist investing](https://www.tulipshare.com/blog/how-activist-investing-can-make-a-difference). The way that [Tulipshare](https://www.tulipshare.com) is approaching activist investing is about leveraging the collective power of shareholders to influence policy at some of the most unethical companies on the planet. At Tulipshare, we currently have a campaign to stop [JPMorgan’s](https://www.tulipshare.com/stocks/JPM) investments in fossil fuels, while also putting pressure on [Coca-Cola](https://www.tulipshare.com/stocks/KO) to switch to 100% renewable plastic worldwide. 

Ultimately, we believe in the power of collective action. As history has shown and thanks to various successful interventions relating to climate change, we’re more powerful when we work together. [Find out more](https://www.tulipshare.com/how-it-works) about how you can make a difference with collective action today. 