Trillium Asset Management Releases New White Paper on Investing for LGBT Equality

 Investing in Equality: Integrating LGBT Issues into Total Portfolio Activation

 BOSTON, MA // September 29, 2016 – A group of investors has released a new white paper, Investing in Equality: Integrating LGBT Issues into Total Portfolio Activation. The paper was prepared by Croatan Institute with the guidance of the Social Justice Fund Northwest, Out Leadership, and Trillium Asset Management. Microsoft Corporation is profiled for its history of leadership in advancing LGBT rights.

The paper provides a framework to help impact investors expand the scope of investing in LGBT issues across asset classes. It is the first effort to structure a total portfolio approach thematically around LGBT equality.

Research by Credit Suisse has shown that investing in businesses that proactively provide LGBT-friendly work environments does not result in a sacrifice in investment returns.[1] As studies begin to make a strong case for investing in LGBT equality, impact investors are beginning to think holistically about their entire diversified investment portfolios. By using the Total Portfolio Activation framework, investors can identify opportunities to integrate LGBT issues across the full spectrum of asset classes.

“This paper highlights both current opportunities to invest in LGBT issues and gaps where new innovations are primed to emerge,” said Kristin Lang, Associate at Croatan Institute. “We hope that investors and foundations alike can use the Total Portfolio Activation framework as a blueprint for crafting their own investment strategies that positively impact the LGBT community.”

“We know that integrating LGBT issues into investment decisions generates positive social impacts with growing evidence of positive impact on financial returns”, said Matt Patsky, CEO of Trillium Asset Management. “The Total Portfolio Activation framework allows investors to expand their scope of impact and support LGBT equality across numerous asset classes.”

“LGBT inclusion helps build business, which is why businesses have been so far ahead of the curve when it comes to including LGBT people”, said Todd Sears, Founder and Principal of Out Leadership. “Companies that adopt inclusive policies for their LGBT employees outperform the market – in part because the most talented people seek out diverse work environments, and because companies where diverse perspectives are welcome are more innovative.”

“Microsoft has long been committed to constructive dialogue with our shareholders and was an early leader in implementing inclusive policies around issues of concern to the LGBT community”, said Dan Bross, Senior Director of Business and Corporate Responsibility at Microsoft.

“As a philanthropic foundation, we have a responsibility to align our investments with our values. Filing shareholder resolutions that support the causes and principles of our grantees allows us to leverage our resources to create lasting change. We hope to join with other institutional investors who are looking to take the first step”, said Mijo Lee, Executive Director of the Social Justice Fund Northwest.

Download the press release here.

The paper can be downloaded here.

For more information: Caroline White, Trillium Asset Management, cwhite@trilliuminvest.com

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Croatan Institute is an independent nonprofit research institute, working at the critical nexus where finance, environmental sustainability, and social equity intersect. Based in the Research Triangle of North Carolina with an extended team of affiliates in Boston, New York, San Francisco, and Geneva, the Institute provides rigorous research and analysis to support strategic decision-making by organizations and practitioners in the field. To learn more, please visit www.croataninstitute.org.

Microsoft Corporation is a technology software company based in Redmond, Washington that develops, licenses, and supports a range of software products, services and devices. To learn more, please visit www.microsoft.com.

Out Leadership is a global LGBT business advisory organization that partners with the world’s most influential companies to build business opportunities, cultivate talent, and drive LGBT equality forward. To learn more, please visit www.outleadership.com.

Social Justice Fund Northwest is a member-funded foundation focused on progressive social change. The foundation works to foster significant, long-term social justice solutions throughout Washington, Oregon, Idaho, Montana and Wyoming. To learn more, please visit www.socialjusticefund.org.

Founded in 1982, Trillium Asset Management is the oldest independent investment advisor focused exclusively on sustainable and responsible investing. Trillium manages assets for clients including individuals, foundations, endowments, religious institutions, and other non-profits. To learn more, please visit www.trilliuminvest.com.

[1] Julia Dawson, et al. “LGBT: The Value of Diversity,” Credit Suisse ESG Research, April 15, 2016.

The information provided is not a recommendation to buy or sell the securities mentioned. The securities were selected on an objective basis for illustrative purposes and do not represent all of the securities purchased, sold or recommended. It should not be assumed that investments in the securities has been or will be profitable.

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Cheryl Smith, Managing Partner & Portfolio Manager on the ‘Toward a Sustainable Economy’ panel at the Center for American Progress

Boston, MA // September 28, 2016 – On September 20^th, Cheryl Smith, Managing Partner of Trillium Asset Management, participated as a speaker on the ‘Towards a Sustainable Economy’ panel at the Center for American Progress Action Fund (CAP Action). Together, investment advisors, business executives, members from the U.S. Senate, and academics advocated for expanded corporate disclosure requirements by the U.S. Securities and Exchange Commission (SEC) and the need for greater transparency on matters such as the environment and climate change, political spending, human capital, and worker wages and incentives.

Hosted by CAP Action, the panel comprised representatives from the Center American Progress Action Fund, AFL-CIO, Americans for Financial Reform, CERES, the Financial Accountability & Corporate Transparency (FACT) Coalition, the International Corporate Accountability Roundtable (ICAR), Patriotic Millionaires, Public Citizen, and US SIF: The Forum for Sustainable and Responsible Investment.

“Investors need greater transparency and disclosure by corporations to make reasoned judgements on valuation and to understand the risks of our investments.  Materiality is not just what is likely to affect the stock price of a single issuer in the next two quarters.  Materiality is what matters to the investor, including both the long term prospects for an issuer and systemic, market-wide impacts”, says Cheryl Smith.

The panel follows a report released this month titled, “Towards a Sustainable Economy: A Review of Comments to the SEC’s Disclosure Effectiveness Concept Release” which analyzed public comments by investors in response to what was titled as a “concept” release, distributed by the SEC in 2016. Published after the SEC’s 2013 “Disclosure Effectiveness Initiative”, the release asked the public to provide additional input into requirements for companies’ corporate disclosures, including the subject of sustainability.

The concept release received several responses requesting improved disclosure. One of the responses was a statement issued by Trillium, urging the SEC to require companies to disclose their environmental, social, and governance (ESG) practices as part of information filed under Regulation S-K.

Read the full report here.

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The Center for American Progress Action Fund is an independent, nonpartisan policy institute and advocacy organization based in Washington D.C.

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SEPTEMBER 26, 2016 // RALEIGH, NC: In a statement organized by Trillium Asset Management, Croatan Institute and the New York City Comptroller, investors representing $2.1 Trillion in collective assets under management are calling for a full repeal of North Carolina’s notorious House Bill 2. The bill overturns municipal non-discrimination protections for lesbian, gay, bisexual, and transgender (LGBT) people and prohibits transgender people from using restrooms consistent with their gender identity. Not only does the bill invalidate the human rights of individuals across the state, but it also has troubling financial implications for the investment climate in North Carolina.

The signatories, representing a wide swath of the investor community, believe that equality is fundamental to a successful workplace and community. As long-term investors in companies doing business in North Carolina, the signatories are concerned that HB2 is making it difficult for portfolio companies to provide the safe, open, and inclusive environment necessary for a successful workplace. According to Out Leadership and the Williams Institute, more than $40 million in business investment had already been withdrawn from the state by May, and far more is at risk in future private equity deals and municipal bond issuance.

“As long-term investors, we can’t sit idly by as HB2 undermines fundamental human rights at our expense,” New York City Comptroller Scott M. Stringer said. “For the last 25 years, New York City’s pension funds have pushed more than 100 companies to enact non-discrimination policies that protect LGBTQ individuals and ensure they attract, retain, and promote the best and the brightest.  These policies are essential if we want companies – and our economy – to succeed, and we can’t let a hate-filled law get in the way.”

Nearly 93 percent of the Fortune 500 have adopted inclusive non-discrimination policies protecting their employees on the basis of sexual orientation, and 75 percent of the Fortune 500 also include gender identity and expression in order to better position themselves to attract and retain the best talent. Research has shown that LGBT-supportive policies lead to positive business outcomes, lower staff turnover, and increased job satisfaction. Just this year, a Credit Suisse report found that companies with strong policies on LGBT protections financially outperform those that do not.

“North Carolina has written discrimination into state law,” stated Trillium CEO Matthew Patsky. “The unintended consequence has been a backlash that is having material, negative impact on the economy of the state. HB2 must be repealed immediately before this damage becomes irreversible,” He continued, “There’s no question whatsoever that corporate and public policies that celebrate and strengthen diversity and inclusivity of all people are good for society and good for business.”

HB2 has received extraordinary public condemnation and has led to federal civil rights lawsuits, travel bans by dozens of state and local governments, and opposition from hundreds of companies. Internationally, the United Kingdom issued a travel advisory directed at their LGBT citizens visiting North Carolina while the European Union criticized HB2 as a contravention of the International Covenant on Civil and Political Rights.

“Simply put, House Bill 2 is making it harder to finance businesses and get deals done in North Carolina,” stated Dr. Joshua Humphreys, president and senior fellow of Croatan Institute. “This diverse group of investors has therefore come together to call for a full repeal of HB2 — before the investment climate in our state deteriorates further.”

“States and countries can either have modern economies driven by knowledge industries like technology, financial services, and pharmaceuticals, or they can discriminate against LGBT people,” said Todd Sears, Founder and Principal of Out Leadership. “North Carolina can’t have it both ways.”

As investors in companies that employ thousands of people across the state, the signatories to this statement are united in calling for a full repeal of HB2. By taking this positive step, North Carolina would assert itself as an inclusive and competitive place for businesses and investors alike.

Download the press release here.

Download the investor statement here.

Click here to read coverage of the investor statement by the Washington Post.

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Founded in 1982, Trillium Asset Management is an investment management firm with over $2 billion in assets under management. Trillium integrates Environmental, Social, and Governance (ESG) factors into the investment process as a way to seek to identify companies better positioned to deliver strong, long-term performance. Trillium has a long history of managing equity and fixed income portfolios for individuals, foundations, endowments, religious organizations, and other non-profits. A leader in shareholder advocacy and public policy work, Trillium leverages the power of stock ownership to promote social and environmental change while providing both impact and performance to our investors.

New York City Comptroller Scott M. Stringer serves as the investment advisor to, and custodian and a trustee of, the New York City Pension Funds. The New York City Pension Funds are composed of the New York City Employees’ Retirement System, Teachers’ Retirement System, New York City Police Pension Fund, New York City Fire Department Pension Fund and the Board of Education Retirement System. As of May 31, 2016, the Pension Funds’ total valuation was $163 billion.

Croatan Institute is an independent nonprofit research institute, working at the critical nexus where finance, environmental sustainability, and social equity intersect. Based in the Research Triangle of North Carolina with an extended team of affiliates in Boston, New York, San Francisco, and Geneva, the Institute provides rigorous research and analysis to support strategic decision-making by organizations and practitioners in the field.

Contact:           

Croatan Institute – Joshua Humphreys, President, josh@croataninstitute.org; (919) 448-4462

NYC Comptroller – Tyrone Stevens, Tsteven@comptroller.nyc.gov; (212) 669-4328

Trillium Asset Management – Caroline White, Cwhite@trilliuminvest.com; (617) 532-6655

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Boston MA // September 20, 2016 – Trillium Asset Management and 139 companies worldwide, were recognized by B Lab on its fourth annual ‘Best for the World Overall’ Honoree list for generating positive social and environmental impact through business practices and performance.

Every year, B Lab, a non-profit organization helping companies manage corporate social responsibility, recognizes businesses that have earned an overall score in the top 10% of approximately 1,800 Certified B Corporations on the B Impact Assessment. The assessment analyzes a company’s contributions to community development, employees, governance, and the environment. Matt Patsky, CEO of Trillium says:

“We are honored to be a part of the growing B Corporation movement that understands the role of companies in moving the world towards a more sustainable global economy.”

Recognized as a pioneer in the field of sustainable and responsible investing, B Corporation says, “[Trillium was] a B Corp before there was a name for it.” Trillium became a certified B Corporation in June 2008 and was the fourth financial firm to receive the designation. Honorees will be featured in the upcoming fall issue of B Magazine, a newly launched publication by B the Change Media. Trillium was also recognized as a “Best for the World for Overall Impact” honoree in 2013, 2014, and 2015.

Read our full 2015 B Impact Assessment Report here.

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Trillium engages companies on environmental, social, and governance (ESG) issues and encourages them to establish policies and goals that are consistent with long-term company and shareholder interests.

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Boston, MA // September 16, 2016

Trillium is proud to support the riders and more than 150 beneficiaries who are making an impact in sustainability, renewable energy, and similar environmental causes.  For thirty-four years, Trillium’s shareholder advocacy group has been a leader on climate change. Through direct dialogue with senior company leadership, filing and co-filing shareholder proposals, and speaking publicly about issues of concern, Trillium uses shareholder advocacy to make an impact on company policies and practices.  Joining Team Ceres demonstrates Trillium’s commitment to creating dialogue around key environmental issues. Brianna states:

It was an honor to join Team Ceres for this year’s Climate Ride.  My hope is to continue raising awareness around the defining issue of our time and to engage others to take action on climate change.

What is Climate Ride? Climate Ride is a 501(c)(3) nonprofit organization that organizes life-changing charitable events to raise awareness and support sustainability initiatives and environmental causes through popular outdoor activities including multi-day bike rides and hikes.

Who are the beneficiaries?  Notable names include B Corp, Rainforest Alliance, Sierra Club, Ceres and the Environmental Defense Fund (EDF). This is an exciting opportunity to raise awareness for organizations that engage the public on significant critical environmental issues.

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Boston, MA // September 9, 2016

Produced by the PRI Integration Sub-Committee, the report utilizes insights and case studies to demonstrate how asset owners and investment managers can integrate ESG research into fundamental, quantitative, and smart beta investment strategies. The sub-committee is comprised of asset owners and fund managers in the SRI field who demonstrate leadership in ESG integration.

Jeremy Cote, a member of the Integration Sub-Committee since 2015, presented our use of an adjusted discount rate in the valuation of eBay’s corporate governance. After discovering potential for improvement in its corporate governance through greater gender diversity on its board, we used a discounted cash flow valuation model to demonstrate the change in equity value if the company improved the number of female board members. Greater board diversity is essential to corporate governance and long-term financial performance. Jeremy states:

Assessing gender diversity at the board level is a fundamental aspect of our governance related research. This is a great example of the kind of ESG integration work we engage in as part of the investment research process. In the case of eBay, a discount rate adjustment was made as part of the valuation analysis to reflect lower company specific risk.

The report provides a framework that will help investors integrate ESG factors into analysis and facilitate dialogue about the increasing relevance of environmental, social, and corporate governance issues into investment practices.

Read the complete report here.

About Principles for Responsible Investment (PRI)

Principles for Responsible Investment (PRI) is an international network of investors who work to understand the implications of environmental, social, and corporate governance (ESG) issues as it relates to investment and ownership decisions of its signatories. After the PRI launched in 2006, Trillium joined in 2007, becoming one of the earliest U.S. signatories.

The information provided in this material should not be considered a recommendation to buy or sell the security mentioned. It should not be assumed that investments in such security has been or will be profitable. To the extent a specific security is mentioned, it was selected by the authors on an objective basis to illustrate views expressed in the commentary and it does not represent all of the securities purchased, sold or recommended for advisory clients. The information contained herein has been prepared from sources believed reliable but is not guaranteed as to its timeliness or accuracy, and is not a complete summary or statement of all available data. This piece is for informational purposes and should not be construed as a research report.

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Boston, MA // September 2, 2016

The conference panel, “Shareowner Advocacy in the Global Struggle for Full LGBTQ Rights”, will address how shareholders can take action and engage companies on achieving equality for the LGBT community. In the Unites States, 28 of the 50 states lack state-level employment non-discrimination laws covering sexual orientation and gender identity.[1] Globally, over 76 countries have laws that criminalize and/or persecute LGBT people.[2] Matt Patsky, CEO of Trillium Asset Management states:

There’s still much work to be done on this issue. LGBT individuals continue to have no legal protection from discrimination in employment and housing in much of the United States.

The panel will be moderated by Matt Patsky and include participation from: Shelley Alpern, Director of Social Research and Shareholder Advocacy at Clean Yield Asset Management; Tim Gill, founder of Gill Foundation; and Kevin Jennings, Executive Director of Arcus Foundation.

In 1995, Trillium became the first investment management firm to sponsor a shareholder proposal asking a company to add ‘sexual orientation’ to its non-discrimination policy. Since then, the firm has encouraged dozens of Fortune 500 corporations to implement non-discrimination policies for employees.  We are pleased to participate on this panel alongside three organizations leading the conversation in this space and encouraging fellow investors to pursue opportunities for positive impact on LGBT rights.

Read FAFN’s full press release here.

SRI Conference Information

The 2016 SRI Conference will take place from November 9-11, 2016 at the Hyatt Regency Downtown in Denver, Colorado. The conference is a gathering of investors and investment professionals in the ESG, Shareowner Advocacy, and Impact Investing space focused on creating a more environmentally sustainable future.

[1] http://www.lgbtmap.org/equality-maps/non_discrimination_laws

[2] http://www.hrc.org/blog/un-human-rights-office-releases-report-detailing-violence-and-discrimi

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Boston, MA// August 26, 2016:

Under the new law, Senate Bill 32, legislation requires reducing greenhouse gas emissions to 40% below 1990 levels by 2030, extending the current climate law, Assembly Bill 32 (AB 32), which requires the state to reach 1990 levels by 2020. “Today’s action reinforces California’s leadership and commitment to a low-carbon economy and sends a powerful signal to the rest of the country and the world that they should do the same,” stated Ana Zacapa, Ceres California Program Director. Jonas Kron, Trillium’s Director of Shareholder Advocacy, says:

California is showing that moving forward with intelligent climate policy can be beneficial to the environment and the economy at the same time. Climate polluting emissions are being cut while growing the economy. Last year the state posted a 3.29% growth rate and created 483,000 jobs, the most of any state by far while at the same time the most recent data show California is just three percent above its old 2020 goal of reducing emissions to 1990 levels.

On August 3, Trillium joined Ceres and approximately twelve other companies and investors in Sacramento to express support for the climate bill. Organized by Ceres, representatives from Levi Strauss & Co., Sierra Nevada, Dignity Health, BYD, Novozymes, and Xylem and several other businesses met with Assembly Speaker Anthony Rendon and Governor Jerry Brown’s staff over the course of 18 in-person meetings.

Trillium is confident that these types of changes will encourage other states and nations to adopt more low-carbon initiatives. As a firm that uses advocacy to positively impact legislation and policy, we were delighted to share our perspective with legislators and commend California’s state assembly for taking such a positive leadership role on clean energy and climate change.

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The information provided is not a recommendation to buy or sell the securities mentioned.  The securities were selected on an objective basis for illustrative purposes and does not represent all of the securities purchased, sold or recommended.  It should not be assumed that investments in the securities has been or will be profitable.

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