The Shareholder Commons, a non-profit advocate for diversified shareholders, today released two case studies focused on the harmful impacts of climate change and antimicrobial resistance. The case studies demonstrate the gap between company-first ESG advocacy and portfolio-first system stewardship and prove to investors that measuring financial success on an enterprise-by-enterprise basis will never motivate companies or asset managers to transition to safe greenhouse gas emission and antimicrobial use budgets.
The case studies describe how investors can and should use “guardrails” to hold companies and their executives accountable for their full carbon and antimicrobials footprints, even if doing so reduces enterprise value. Additionally, the case studies demonstrate that only by leveraging this approach can the long-term value of diversified portfolios held by pension funds, foundations, endowments, and other institutions working on behalf of everyday savers be preserved.
Rick Alexander, CEO of The Shareholder Commons, said, “As investors gather for Climate Week, we hope they’ll consider these case studies as evidence that they must move beyond the false promise of enterprise value alone as a workable measure of financial success. Investors must unequivocally insist that companies stop behavior that threatens our economy.”The Shareholder Commons Unveils New Investor Strategy for Shielding Portfolios from Climate Change and Public Health Threats