Marcela I. Pinilla
Director of Sustainable Investing
Download our Q1 2022 Impact Update.
At Zevin Asset Management, we build responsible investment portfolios for our clients. We then address risks and create positive social impact by engaging with portfolio companies. The early months of 2022 were no exception. In the first quarter of 2022, we looked for opportunities to support the people of Ukraine against Russia’s invasion. We initiated dialogues with portfolio companies and the investment community on their role in enabling this war — and pressed for action to mitigate further human rights abuses.
Russia’s invasion: Our investor response and next steps
Upon Russia’s horrific invasion of Ukraine, our obligation as investors to support Ukraine and stand against injustice was immediately clear. In our response, we looked to the example set by the responsible investors who acted against apartheid in South Africa. We were swift to examine our own exposure and engage the broader investment community. While we are confident that our direct exposure is very minimal, we are monitoring the divestment activities and strength of action by multinational companies with ties to Russia, and following up with our portfolios companies when needed. We have also mobilized fellow investors to support Ukraine. Sharing her insights and background as a Ukrainian-American and former Russian-equity analyst, Zevin Asset Management President Sonia Kowal has garnered the attention of the investment community at large. She has provided her incisive perspective on the current situation on a number of webinars and podcasts, as well as in interviews with Reuters and Bloomberg. She and Marcela Pinilla, our director of sustainable investing, delve into investors’ role in Russian aggression in our audiocast on the issue.
Progress update: Proxy season, corporate dialogue & new climate-focused standards
Verizon commits to comprehensively reviewing how its business affects racial equity. We were glad to withdraw our shareholder proposal with Verizon after the company agreed to conduct and publicize information about a racial equity audit conducted by a credible third party. Our hope is that a racial equity lens will enable Verizon broaden the scope and depth of the its focus on diversity, equity, and inclusion (DEI) by helping the company identify its policies and practices that could be delaying progress. We look forward to an update on the company’s progress later this year.
Boosting the vote with institutional investors. This proxy season we built awareness for our shareholder proposals by presenting our case to the two largest proxy voting services firms, ISS and Glass Lewis. We outlined our proposal with Kroger, which asks that the company align executive compensation with ESG issues, citing worker strikes, reports of food and housing insecurity, and the 909:1 ratio of their CEO pay to median worker pay among reasons for filing. We also made the case for our proposal with Alphabet, which asks that the company evaluate conflicts between its direct and indirect lobbying activities and its stated commitments on climate change. We also provided our perspective on Alphabet’s lobbying activities to the ESG and proxy voting teams at large investors, State Street Global Advisors and Vanguard.
New standards for corporate climate lobbying due diligence and disclosure are making waves. The launch of the Global Standard on Responsible Climate Lobbying is a meaningful step towards ensuring that corporate lobbying efforts are in alignment with the goals of the Paris Agreement. Specifically, on a comply or explain basis we expect companies to ensure their lobbying is governed and delivered in line with the Global Standard on Responsible Corporate Climate Lobbying. As we frequently engage companies on the misalignment between their lobbying activities and publicly stated values, including climate action, we are glad to see a climate lobbying standard take form.
We are also encouraged by the U.S. Securities and Exchange Commission’s (SEC) proposed rule to enhance and standardize corporate disclosure on climate change risks and impacts. We are excited to see the SEC meet the growing investor demand for transparent climate-related reporting. Of course, the proposed rule has room for improvement. We believe the rule should not preclude investors from asking companies to disclose Scope 3 emissions — indirect emissions that occur in a company’s value chain — if investors deem them to be material. Scope 3 emissions may not be financially material to a company, but they are material to universal shareholders and investors looking at systemic risk.
In other news: Zevin Asset Management weighs in
At Zevin Asset Management, we actively lend our investor voice to other individuals and institutions seeking to create positive social change. In the first quarter of 2022, we supported social change by:
Signing a series of letters led by Rhia Ventures that asked 200 companies in 10 states to respond to emerging state laws restricting maternal health care.
Zevin Asset Management President Sonia spoke about investing with a gender and racial lens in a session at Confluence Philanthropy’s Annual Practitioners Gathering
Marcela Pinilla, director of sustainable investing, shared our learned experiences and discussed an end to mass incarceration at this year's SXSW conference in Austin, TX
Looking ahead
Despite encouraging signs that the worst of the pandemic is behind us, the inequitable impacts of the pandemic could be longlasting. We will continue our focus on those affected by unequal economic recovery such as essential workers. We will also continue to learn and have conversations with stakeholders in racial justice about the thoughtful changes that need to be made in our systems and institutions. We remain determined participants in that transformation.
Zevin Asset Management continues to be active in corporate engagements, listening to advocacy organizations on the ground, and filing shareholder proposals for inclusion in the 2022 proxy season. We look forward to sharing the results in our next impact update!
Zevin asset management in action
Marcela Pinilla, director of sustainable investing at Zevin Asset Management, (left) joins Sancia Dalley from Robert F. Kennedy Human Rights (middle) and Justice Capital’s Christina Hollenback (right) on a panel to share our experience engaging public equities on worker rights and prison industry exposure at this year’s SXSW conference in Austin, TX.
Thank you for reading and sharing. For more on this work and our broader advocacy, visit our website, and join us on Twitter and LinkedIn. And please don’t hesitate to contact Marcela Pinilla, Zevin Asset Management’s director of sustainable investing, at marcela@zevin.com with your questions, thoughts, and suggestions.
Disclosures: Registration with the SEC should not be construed as an endorsement or an indicator of investment skill, acumen or experience. Investments in securities are not insured, protected or guaranteed and may result in loss of income and/or principal. This communication may include opinions and forward-looking statements. All statements other than statements of historical fact are opinions and/or forward-looking statements (including words such as “believe,” “estimate,” “anticipate,” “may,” “will,” “should,” and “expect”). Although we believe that the beliefs and expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such beliefs and expectations will prove to be correct. Various factors could cause actual results or performance to differ materially from those discussed in such forward-looking statements. Unless stated otherwise, any mention of specific securities or investments is for hypothetical and illustrative purposes only. Zevin Asset Management’s clients may or may not hold the securities discussed in their portfolios. Zevin Asset Management makes no representations that any of the securities discussed have been or will be profitable.