After midterms, Trillium's Kron looks for an ESG resurgence
MSFT•Trillium Asset Management Chief Advocacy Officer Jonas Kron said companies should renew ESG commitments and anchor them to their business cases and values, rather than shifting with political pressure. He cited anti-ESG shareholder proposals receiving only 1% to 2% support and discussed Trillium proposals at Microsoft and Starbucks.
1. Call to renew ESG commitments
Trillium Asset Management said companies have misjudged the risks of environmental, social and governance considerations and should renew their commitments after the midterm elections. In an interview, Chief Advocacy Officer Jonas Kron said companies overreacted to political pressure and underweighted investor demand, while mainstream investors rejected anti-ESG proposals by vast majorities, with those proposals receiving about 1% to 2% of votes.
2. Companies face competing pressure
Kron said companies that stay silent risk letting other groups define their positions. He urged them to anchor ESG policies in their business cases, values and missions rather than changing course every two years based on politics. Trillium manages $4.6 billion, according to the article.
3. Proposals at Microsoft and Starbucks
Kron said Trillium has a climate-related shareholder proposal at Microsoft that will go to a vote on December 8. A separate proposal at Starbucks concerns the company's rescission of its Environmental Partner and Community Impact board committee and is scheduled for a vote in March.
