Public Policy and the Corporate Voice

by Marcela Pinilla

Walden increasingly pursues public policy advocacy to help achieve environmental, social, and governance (ESG) goals.

On the topic of climate change, the fierce opposition of the U.S. Chamber of Commerce to proposed legislation has produced a firestorm of activity. Prompted by statements from the Chamber that range from obstructionist to bizarre, Walden and 43 other investors directed a letter to member companies that publicly support climate legislation. The letter asked them to seriously evaluate their alliance to a group whose leader, Tom Donohue, said, “Warmer temperatures could help by reducing deaths related to cold weather.” (Not to be outdone, the Chamber’s senior vice president for environment, technology, and regulatory affairs called for a climate change hearing that would be “the Scopes ‘Monkey Trial’ of the 21st century.”) The recent exodus of companies such as Apple, Exelon, and PG&E, and public statements asserting the views of the Chamber do not represent their own, has continued to fuel the resolve of many companies to get serious about mitigating the effects of climate change. As the debate expands, leaders such as Nike have demonstrated their resolve by resigning from the Chamber’s Board.

A similarly short-sighted perspective from the Chamber on comprehensive healthcare reform prompted Walden to join 60 other members of the Interfaith Center on Corporate Responsibility (ICCR) to send letters to companies. The Chamber has proclaimed that the current administration seeks to pass “government-run healthcare” into law. We believe this to be a grave mischaracterization of what bringing affordable healthcare to all citizens is about. The letters were directed to 36 companies that have supported ICCR’s principles of healthcare reform, asking them if the Chamber “speaks for them,“ and inviting them to express publicly their views on healthcare.

On the equal employment opportunity front, aWalden-led letter campaign to 75 leaders on inclusive workplace practices has been timely and well-received. The letters entreated companies to support the Employee Non-Discrimination Act (ENDA) by joining the Business Coalition for Workplace Fairness. ENDA, currently making its way through the U.S. Congress, explicitly prohibits workplace discrimination based on sexual orientation and gender identity. Companies such as Best Buy, Dell, Clorox, IBM, and Motorola have signed up with the Coalition.

Investors should rejoice over the reversal of a Securities and Exchange Commission (SEC) policy that had encumbered the shareholder resolution process for many years. Walden was among a dozen investor proponents invited to a September meeting called by the SEC’s Division of Corporation Finance to discuss the agency’s role in allowing companies to omit shareholder proposals from ballots at annual shareholder meetings. The SEC was receptive to comments and finally ruled that resolutions may now include explicit requests for companies to analyze their risk associated with climate change and the environment, among other major ESG issues.

From the boardroom to the SEC, Walden is a persistent voice for sound and robust public policies. Through increased visibility of corporate and governmental leaders, we hope to encourage public awareness and understanding of climate change, healthcare, and employment policies that are fundamental to economic and social prosperity.