Today’s blog post is an update to a previous post, With a Name Like Smucker’s… Today’s shareholder vote at the Smucker’s annual meeting marked an important step towards getting the company to report on climate risks associated with their coffee business and supply chain. The proposal received roughly 30% support (based on preliminary numbers). While 30% might […]

Today’s blog post is an update to a previous post, With a Name Like Smucker’s…

Today’s shareholder vote at the Smucker’s annual meeting marked an important step towards getting the company to report on climate risks associated with their coffee business and supply chain. The proposal received roughly 30% support (based on preliminary numbers). While 30% might not sound notable, a recent report on the 2011 proxy season puts the vote in perspective: the report found that investor support for shareholder resolutions on environmental and social issues rose to a 20.5% average approval rate (the first time support has ever reached the 20% mark). 30% sure sounds like a lot when measuring against that baseline. Analysts at Trillium Asset Management and Calvert Investment Management also report that first year resolutions generally garner far less support as investors are initially introduced to the proposals.

This vote sends a clear signal to Smucker’s leadership that shareholders are raising legitimate concerns around disclosure of social and environmental risks in their coffee supply chain. Trillium and Calvert will engage with company representatives in the fall pressing them to respond meaningfully to investor concerns about coffee and climate change. While the two investment firms hope to make progress with the company over the course of the next year, they will reserve the right to re-file the resolution in 2012 if necessary. 

Oxfam will help keep the pressure on Smucker’s to adequately respond and we’ll keep you updated on opportunities to engage.