Company DescriptionsThe General Board communicates with many companies about environmental stewardship, human and workers’ rights, access to health care and sound corporate governance practices. Here are summaries of our current corporate dialogues.
CaterpillarStatus: Dialogue Background: In October 2005, the General Board co-filed a resolution at Caterpillar requesting the company prepare a sustainability report. Sustainability reports can disclose important information about a company often not included in annual reports or filings required by the Securities and Exchange Commission, including environmental impacts, social policies, labor and human rights issues, and corporate governance guidelines. In January 2006, the General Board and other proponents withdrew the resolution following Caterpillar's commitment to publish a report and to involve shareholders in the review process of the draft report. In March, the General Board submitted extensive feedback on the draft report to Caterpillar on behalf of co-filers. Later that month, co-filers met in person with Caterpillar staff to review the draft report and to discuss our feedback. In January 2007, a draft copy of Caterpillar's second sustainability report was shared with the General Board for feedback. In February the General Board organized a conference call with the company and other faith-based investors to provide feedback on the draft report. In 2008, the General Board, working with the United Methodist General Board of Church and Society and other faith-based investors, contacted the company to discuss the use of its products in Middle East occupied territories. Two meetings were held where investors shared their concerns about Caterpillar’s human rights policies. As a result, the company made slight revisions to language relating to the responsible use of its products. ConAgraStatus: Dialogue Background: The General Board began a dialogue in 2009 with ConAgra Foods to ask the company to consider reducing the amount of pesticides that are applied to potato fields. The United Methodist Church has voiced concern about the excessive use of pesticides and supports a gradual transition to sustainable and organic agriculture. Regularly scheduled updates on the company’s response are anticipated. Freeport McMoRanStatus: Resolution filed Background: The General Board has filed a shareholder resolution for the 2009 annual meeting asking Freeport McMoRan to nominate an independent director with expertise in the areas of mining and the environment. The company has long been criticized for its environmental policies and practices, and the General Board believes the nomination of a director with expertise in the environmental impact of mining will be beneficial to the company and will demonstrate a commitment to minimizing its environmental impact. Goldman SachsStatus: Resolution withdrawn Background: The General Board filed a shareholder resolution for the 2009 annual meeting asking that shareholders be given an advisory vote on executive compensation. The United Methodist Church supports “measures that would reduce the concentration of wealth in the hands of a few.” The General Board believes that executive compensation for top management should be linked to corporate financial performance and accountability for environmental, social and governance criteria to ensure corporate sustainability. The company agreed to our request, and the resolution was withdrawn. HalliburtonStatus: The 2009 resolution received 6.4% of the vote. Background: In 2008, the General Board wrote to Halliburton and requested a meeting to discuss how the company planned to remain competitive in the developing low-carbon energy market. The company did not respond. In December, the General Board filed a shareholder resolution, requesting Halliburton’s board to adopt a policy for low-carbon energy research, development and production. Although the General Board continued to ask for a meeting, the company did not respond and instead challenged the resolution at the Securities and Exchange Commission (SEC). The SEC ruled in the General Board’s favor, and the resolution was included on the 2009 proxy ballot where it received 6.4% of the vote. A few days before the May 2009 annual meeting, Halliburton updated its Web site to include a new section that described the company’s activities with regard to carbon capture and storage, a low-carbon technology. At the annual meeting, the General Board attended and publicly thanked the company for disclosure on its actions to address low-carbon energy technology. Hewlett-PackardStatus: Dialogue Background: The General Board contacted Hewlett-Packard in 2008 concerning the company’s human rights policies and practices in Israel and the Middle East. The company agreed to meet via conference call in March 2009, but later canceled the meeting and committed to respond to investor questions in writing. The General Board submitted questions on behalf of several faith-based investors and the company’s written responses are being evaluated. Home DepotStatus: 2009 resolution received 22% of the vote Background: In 2007, the General Board co-filed a resolution seeking publication of a diversity report. The General Board supports resolutions requesting company management to report on efforts to establish affirmative action programs, enforce equal employment opportunity in the workplace and promote women and persons of color. The 2007 resolution received 25.6% of shareholder votes. The General Board re-filed the resolution in 2008, where it garnered 25% of the vote. The 2009 resolution received 22% of the vote. In spite of the strong shareholder support, the company has not been persuaded to publish the diversity data. HormelStatus: Dialogue Background: The General Board began a dialogue in 2009 with Hormel that focuses on issues of sustainability within the meat supply chain. The General Board has asked Hormel to meet periodically to discuss issues such as: the use of antibiotics in animals, environmental pollution, air emissions, and worker safety in animal processing facilities. KelloggStatus: Dialogue Background: In November 2007 the General Board filed a resolution at Kellogg requesting information on the sustainability of the company’s supply chain. After meeting with the company to learn about sustainability initiatives currently underway, and following a commitment by the company to continue discussing corporate sustainability issues with the General Board and to improve reporting on those issues, the General Board agreed to withdraw the resolution. Two meetings have been held with the company to discuss progress toward the agreed upon goals. In early 2009, the company published a Sustainability Report. The General Board will evaluate future reports and offer feedback. MotorolaStatus: 2009 resolution received 7.2% of the vote. Background: Since 2007, the General Board has been in dialogue with Motorola regarding the development of a comprehensive human rights policy to guide its business operations in the Middle East. The results of the initial dialogue prompted the General Board to file a shareholder proposal for Motorola’s 2008 annual meeting, asking the company to review and strengthen its policies related to human rights. The 2008 proposal received 10% of the vote. Dialogue continued, with limited progress. The General Board filed a similar shareholder proposal in 2009, where it received 7.2% of the vote. In collaboration with other investors, the General Board will evaluate strategic engagement strategies to take with Motorola. Oil and Natural Gas Company (ONGC)Status: Shares divested Background: In October 2007, the General Board sent a letter to Oil and Natural Gas Company (ONCG), based in India, expressing concern over the situation in Sudan and requesting that the company provide information on its operations, policies and practices in countries where governments have been accused of human rights violations. The General Board’s investment manager holding ONGC shares also requested that the ONGC shareholder relations group contact the General Board. There was no response by ONGC to these requests. As an advocate for human rights, the General Board is especially sensitive to those regions of the globe experiencing political and civil unrest. By holding corporations accountable for the implementation of their codes of conduct in these locations, the General Board gives voice to the Church's commitment that humanity be affirmed in all places. In May, General Conference 2008 passed a resolution calling upon United Methodist investors “to prayerfully consider divestment of the personal and pension assets under their control from any company doing business with the government of Sudan.” The General Board’s investment portfolio held shares in the ONGC which is engaged in Sudanese oil exploration and production through its foreign exploration arm, ONGC Videsh Ltd. ONGC also owns shares in several Sudanese oil-producing ventures with an interest in purchasing additional shares, and helped build a pipeline connecting a refinery in Khartoum with export terminal facilities in Port Sudan. Directors of the General Board determined that divestment was the most appropriate action because ONGC provides no public disclosure about its business operations in Sudan, has declined requests by investors for information and has been identified as one of the companies doing business with the Sudanese government. All shares were divested. Pulte HomesStatus: Resolution withdrawn Background: For the 2007 annual meeting, the General Board filed a resolution concerning the company’s policies and practices pertaining to energy efficiency. The United Methodist Church supports measures calling for a reduction of carbon dioxide, methane, nitrogen oxides, and sulfur dioxide, which contribute to acid rain and global climate change. Pulte Homes successfully challenged the resolution at the Securities and Exchange Commission (SEC) and the company was allowed to omit the resolution from its proxy. In 2008, the General Board filed a resolution asking Pulte to publish a report detailing it efforts to reduce greenhouse gas emissions from its products and operations. The resolution withstood a challenge at the SEC and received 22.9% of shareholder votes. The resolution was re-filed for 2009, and was subsequently withdrawn after the company agreed to include specific information about climate change and energy efficiency in its next annual report. Sara LeeStatus: Resolution withdrawn, report published Background: In May 2006, the General Board filed a resolution at Sara Lee Corporation requesting the company prepare a sustainability report. Sustainability reports can disclose important information about a company often not included in annual reports or filings required by the Securities and Exchange Commission, including environmental impacts, social policies, labor and human rights issues, and corporate governance guidelines. Sara Lee agreed to publish a sustainability report and involve the General Board in its development. The General Board met with Sara lee to receive an update on the reporting process, and later to provide feedback on the draft report. Sara Lee’s first Sustainability Report was published in 2008. Standard PacificStatus: Resolution filed Background: For the 2007 annual meeting, the General Board filed a resolution concerning the company's policies and practices pertaining to energy efficiency. The United Methodist Church supports measures calling for a reduction of carbon dioxide, methane, nitrogen oxides, and sulfur dioxide, which contribute to acid rain and global climate change. The company challenged the General Board's resolution at the Securities and Exchange Commission (SEC), and the SEC ruled that the resolution could be omitted from Standard Pacific’s proxy materials. In 2008, the General Board filed a shareholder resolution asking the company to develop quantitative goals for reducing greenhouse gas emissions from its products and operations. Standard Pacific challenged the resolution at the SEC and lost. The resolution received 33.7% of the vote. The resolution has been re-filed for the 2009 annual meeting. Wal-MartStatus: Dialogue Background: In 2004, 2005 and 2006, the General Board filed resolutions at Wal-Mart requesting the company prepare a sustainability report. Sustainability reports can disclose important information about a company often not included in annual reports or filings required by the Securities and Exchange Commission, including environmental impacts, social policies, labor and human rights issues, and corporate governance guidelines. The resolutions received 14.16%, 16.16%, and 10.2% of the vote, respectively. In 2007, Wal-Mart published its first ever Sustainability Report. The General Board provided feedback on the report, and continued the dialogue to include a review of the 2008 report as well. In 2008, the General Board brought to Wal-Mart’s attention the state-sponsored use of child labor to harvest cotton in Uzbekistan. Wal-Mart subsequently directed its suppliers to stop using cotton sourced in Uzbekistan. The company also published a press release documenting its policy on cotton sourced from Uzbekistan. |