March 7, 2014: Investors, concerned with the devastating impact a large scale mining operation would have on the Bristol Bay region of Alaska, welcomed the U.S. Environmental Protection Agency’s recent announcement that it will initiate a Clean Water Act 404(c) review process for the proposed project.

Bristol Bay is the home of the largest wild sockeye salmon fishery in the world, which is sustainably managed and central to the life of the Alaska Natives in the region. Protecting this national resource is important for the economy, sound resource development and the finances of companies that sell salmon.

We believe that an inclusive and scientifically based Section 404(c) process, in keeping with the Bristol Bay Assessment process we have seen thus far, can be consistent with the concerns we have articulated regarding economic growth, responsible mineral development, negative externalities, and the financial importance of ecosystem services.

We also urge Rio Tinto, a large stakeholder in the proposed mine, to re-examine its participation in the face of the growing risks and costs.

The investor group led by Trillium Asset Management LLC and Calvert Investment Management Inc, includes Christopher Reynolds Foundation, Clean Yield Asset Management, First Affirmative Financial Network, Green Century Capital Management, Inc., Investor Voice, SPC, Maryknoll Sisters, Newground Social Investment, SPC, Pax World Management LLC, Sierra Club Foundation, The Sustainability Group of Loring, Wolcott & Coolidge, Walden Asset Management, and Zevin Asset Management LLC.

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Bloomberg Businessweek recently published a story about Trillium’s shareholder resolution, co-filed with Domini Social Investments, which asks Chipotle Mexican Grille (NYSE: CMG) to:

“[I]ssue an annual sustainability report describing the company’s short- and long-term responses to ESG-related issues”.

Leslie Patton writes: “Chipotle Mexican Grill Inc. which touts its natural ingredients and humanely raised meat, is being asked to show whether it practices what it preaches…Trillium and Domini are asking that Chipotle, along with more disclosure about the company’s farming standards, give shareholders more information on its carbon footprint, such as food packaging and store water use, as well as labor practices.”

You can read the entire article here.

In February 2014, Apple, Inc. (NASDAQ: AAPL) announced that all of the tantalum smelters used by its suppliers are conflict-free.

Trillium Asset Management commends Apple’s leadership in supporting ethical sourcing of minerals and economic development in the Democratic Republic of Congo (DRC) and neighboring regions. In our view, Apple’s strategy to source clean minerals from the DRC is sound risk management.

The company’s 2014 Supplier Responsibility Report includes a comprehensive list of the smelters and refiners whose tin, tantalum, tungsten, and gold has been verified as conflict-free and which ones have not received independent verification. This information allows investors and other stakeholders to understand how Apple is managing human rights risks in its supply chains. The company has publicly committed to requiring verified tantalum sources in future manufacturing and is focusing on expanding the verified smelter base, stating:

[T]he only way to impact the human rights abuses on the ground is to have a critical mass of smelters verified as conflict-free, so that demand for the mineral supply from questionable sources is affected.

During last week’s annual meeting, Apple’s CEO Tim Cook’s reminded shareholders that “many things Apple does because they are right and just”.

In 2010, Apple was seen as lagging consumer electronics companies in responding to this material business risk. Since then it has become the first company to publicly identify the number of smelters in its supply chain and require suppliers across its product lines to use only verified tantalum smelters. In January 2014, Intel (NASDAQ: INTC) announced that it is now manufacturing and shipping its first-ever conflict-free electronics product, a microprocessor.

Trillium has been concerned about the human rights and environmental risks of sourcing from the DRC since 2008. In 2011, Trillium joined a diverse range of stakeholders including investors, human rights activists and industry representatives, convened by Responsible Sourcing Network, to provide recommendations to the U.S. Securities and Exchange Commission’s (SEC) draft rules pertaining to the procurement of four minerals tied to the deadly conflict in the DRC. Several of the multi-stakeholder group’s recommendations were incorporated in the final rules and companies are expected to file a special disclosure report on their use of conflict minerals beginning in May.

Apple’s announcement is good for business, its shareholders and the communities in the DRC and surrounding regions.

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FEBRUARY 28, 2014 // WASHINGTON, DC: The U.S. Environmental Protection Agency (EPA) is initiating a process under the Clean Water Act to identify appropriate options to protect the world’s largest sockeye salmon fishery in Bristol Bay, Alaska from the potentially destructive impacts of the proposed Pebble Mine. The Pebble Mine has the potential to be one of the largest open pit copper mines ever developed and could threaten a salmon resource rare in its quality and productivity. During this process, the U.S. Army Corps of Engineers cannot approve a permit for the mine.

This action, requested by EPA Administrator Gina McCarthy, reflects the unique nature of the Bristol Bay watershed as one of the world’s last prolific wild salmon resources and the threat posed by the Pebble deposit, a mine unprecedented in scope and scale. It does not reflect an EPA policy change in mine permitting.

“Extensive scientific study has given us ample reason to believe that the Pebble Mine would likely have significant and irreversible negative impacts on the Bristol Bay watershed and its abundant salmon fisheries,” said EPA Administrator Gina McCarthy. “It’s why EPA is taking this step forward in our effort to ensure protection for the world’s most productive salmon fishery from the risks it faces from what could be one of the largest open pit mines on earth. This process is not something the Agency does very often, but Bristol Bay is an extraordinary and unique resource.”

EPA is basing its action on available information, including data collected as a part of the agency’s Bristol Bay ecological risk assessment and mine plans submitted to the Securities and Exchange Commission. Today, Dennis McLerran, EPA Regional Administrator for EPA Region 10, sent letters to the U.S. Army Corps of Engineers, the State of Alaska, and the Pebble Partnership initiating action under EPA’s Clean Water Act Section 404(c) authorities.

“Bristol Bay is an extraordinary natural resource, home to some of the most abundant salmon producing rivers in the world. The area provides millions of dollars in jobs and food resources for Alaska Native Villages and commercial fishermen,” McLerran said. “The science EPA reviewed paints a clear picture: Large-scale copper mining of the Pebble deposit would likely result in significant and irreversible harm to the salmon and the people and industries that rely on them.”

Today’s action follows the January 2014 release of EPA’s “Assessment of Potential Mining Impacts on Salmon Ecosystems of Bristol Bay, Alaska,” a study that documents the significant ecological resources of the region and the potentially destructive impacts to salmon and other fish from potential large-scale copper mining of the Pebble Deposit. The assessment indicates that the proposed Pebble Mine would likely cause irreversible destruction of streams that support salmon and other important fish species, as well as extensive areas of wetlands, ponds and lakes.

In 2010, several Bristol Bay Alaska Native tribes requested that EPA take action under Clean Water Act Section 404(c) to protect the Bristol Bay watershed and salmon resources from development of the proposed Pebble Mine, a venture backed by Northern Dynasty Minerals. The Bristol Bay watershed is home to 31 Alaska Native Villages. Residents of the area depend on salmon as a major food resource and for their economic livelihood, with nearly all residents participating in subsistence fishing.

Bristol Bay produces nearly 50 percent of the world’s wild sockeye salmon with runs averaging 37.5 million fish each year. The salmon runs are highly productive due in large part to the exceptional water quality in streams and wetlands, which provide valuable salmon habitat.

The Bristol Bay ecosystem generates hundreds of millions of dollars in economic activity and provides employment for over 14,000 full and part-time workers. The region supports all five species of Pacific salmon found in North America: sockeye, coho, Chinook, chum, and pink. In addition, it is home to more than 20 other fish species, 190 bird species, and more than 40 terrestrial mammal species, including bears, moose, and caribou.

Based on information provided by The Pebble Partnership and Northern Dynasty Minerals, mining the Pebble deposit may involve excavation of a pit up to one mile deep and over 2.5 miles wide — the largest open pit ever constructed in North America. Disposal of mining waste may require construction of three or more massive earthen tailings dams as high as 650 feet. The Pebble deposit is located at the headwaters of Nushagak and Kvichak rivers, which produce about half of the sockeye salmon in Bristol Bay.

The objective of the Clean Water Act is to restore and maintain the chemical, physical, and biological integrity of the nation’s waters. The Act emphasizes protecting uses of the nation’s waterways, including fishing.

The Clean Water Act generally requires a permit under Section 404 from the U.S. Army Corps of Engineers before any person places dredge or fill material into wetlands, lakes and streams. Mining operations typically involve such activities and must obtain Clean Water Act Section 404 permits. Section 404 directs EPA to develop the environmental criteria the Army Corps uses to make permit decisions. It also authorizes EPA to prohibit or restrict fill activities if EPA determines such actions would have unacceptable adverse effects on fishery areas.

The steps in the Clean Water Act Section 404(c) review process are:

Step 1 – Consultation period with U.S. Army Corps of Engineers and owners of the site, initiated today.

Step 2 – Publication of Proposed Determination, including proposed prohibitions or restrictions on mining the Pebble deposit, in Federal Register for public comment and one or more public hearings.

Step 3 – Review of public comments and development of Recommended Determination by EPA Regional Administrator to Assistant Administrator for Water at EPA Headquarters in Washington, DC.

Step 4 – Second consultation period with the Army Corps and site owners and development of Final Determination by Assistant Administrator for Water, including any final prohibitions or restrictions on mining the Pebble deposit.

Based on input EPA receives during any one of these steps, the agency could decide that further review under Section 404(c) is not necessary.

Now that the 404(c) process has been initiated, the Army Corps cannot issue a permit for fill in wetlands or streams associated with mining the Pebble deposit until EPA completes the 404(c) review process.

EPA has received over 850,000 requests from citizens, tribes, Alaska Native corporations, commercial and sport fisherman, jewelry companies, seafood processors, restaurant owners, chefs, conservation organizations, members of the faith community, sport recreation business owners, elected officials and others asking EPA to take action to protect Bristol Bay.

More information on the Clean Water Act Section 404 (c):

http://water.epa.gov/lawsregs/guidance/cwa/dredgdis/upload/404c.pdf

More information on the EPA Bristol Bay Assessment: http://www2.epa.gov/bristolbay

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Contact Information: Hanady Kader, 206-553-0454, kader.hanady@epa.gov

This press release was originally published by the U.S. Environmental Protection Agency which is solely responsible for its content.

Laura Campos, Director of Shareholder Activities for the Nathan Cummings Foundation, recently wrote an opinion piece for Philanthropy.com that highlights recent shareholder activism.

Ms. Campos writes: “Over the past year, shareholder activists racked up a list of accomplishments that would be the envy of many foundations.

They secured agreements from some of the world’s largest companies to set targets for reducing greenhouse-gas emissions. They persuaded companies to be more transparent and accountable with corporate political spending and to abandon support for controversial organizations like the American Legislative Exchange Council, also known as ALEC. They pushed companies to adopt plans to increase board diversity. And they raised questions about problematic pay practices contributing to the upward spiral of CEO pay.

They did all this by using a strategy available to most foundations but ignored by many: They exercised their rights as owners of America’s publicly traded corporations. They filed shareholder resolutions and voted their proxies…The Nathan Cummings Foundation persuaded the Mylan pharmaceuticals company to begin disclosing its political spending and worked with Trillium Asset Management to prompt AT&T to issue a report on network neutrality.”

You can read the entire piece here.

On February 24, 2014, a coalition of concerned investors, lead by Trillium Asset Management and Calvert Investment Management, sent a letter to President Obama and U.S. EPA (Environmental Protection Agency) Administrator McCarthy urging the EPA to initiate a Clean Water Act 404(c) process to provide long term protection for the Bristol Bay region of Alaska.

In January 2014, the EPA released its final assessment of Potential Mining Impacts on Salmon Ecosystems of Bristol Bay, Alaska which states that large scale mining such as the proposed Pebble Mine has “potential for significant effects on Alaska Native cultures” and “the significant loss of Chinook salmon populations” which “would have severe consequences…”.

You can read the recent investor letter here.

By Jonas Kron & Michael Connor

(Published in the Winter 2014 Issue of Investing For a Better World)

The high-stakes drama began to unfold in a Hong Kong hotel room last June. In the starring role was a 29-year-old computer whiz who had committed what TIME magazine called “the most spectacular heist in the history of spycraft.” The story has continued to develop in the months since with a steady drumbeat of news reports that have rocked the highest levels of government in the U.S. and around the world.

The computer whiz is Edward Snowden, a former contactor for the U.S. National Security Agency (NSA) who allegedly disclosed hundreds of thousands of classified files to The Guardian and The Washington Post detailing a U.S. government surveillance program which has been collecting massive amounts of data on millions of Americans – regardless of whether they are suspected of any wrongdoing.

While public opinion on Snowden is divided (some think he’s a hero; others, a traitor), his disclosures have highlighted the increasingly complex relationship between legitimate law enforcement and national security concerns and the need to protect individual privacy in the digital age. With almost ubiquitous global communications – often with mobile phones, or on social media platforms like Facebook or Twitter – law enforcement agencies at all levels, and in virtually all countries, are increasingly turning to telecommunications and Internet companies in search of confidential customer data.

And when those requests involve information belonging to everyday citizens, serious questions arise. U.S. Senator Ron Wyden (D-OR), speaking about the NSA surveillance program, said: “When law-abiding Americans call their friends, who they call, when they call, and where they call from is private information…I have to believe the civil liberties of millions of American have been violated.”

In addition to calls for legislative and regulatory reform, privacy concerns such as these have prompted shareholder initiatives – by Trillium and others – which seek greater accountability regarding those government requests for customer information.

Need for Transparency

Customer trust is critical for any business, but especially so for the major Internet and telecommunications companies – which routinely gather massive amounts of personal data concerning and affecting the lives of hundreds of millions of people in the U.S. and around the world. Failure to persuade customers of a genuine and long-term commitment to privacy rights could present companies with serious financial, legal and reputational risks.

In fact, there is evidence that reports of government surveillance may already be hurting the U.S. economy. The Information Technology and Innovation Foundation has estimated that disclosures regarding surveillance programs could cost the cloud computing industry $21 – $35 billion in business over the next three years if foreign customers decide the risks of storing data with a U.S. company outweigh the benefits.

Privacy is also a fundamental tenet of democracy and free expression. If people around the world come to mistrust their communications networks, they’re less likely to speak out on critical issues. And society suffers as a result.

One way for companies to develop trust is to tell customers and investors how they’re dealing with government requests for confidential customer information. Even as companies are sometimes subject to strict legal gag orders regarding national security requests, they can still provide data on a broader pool of law enforcement data requests, which often come from local law enforcement, and from governments outside the U.S.

Internet companies – such as Google, Microsoft, LinkedIn, Twitter, Yahoo and Facebook – have begun to publish that data on an annual or semi-annual basis in what are called Transparency Reports or Law Enforcement Request Reports. These companies have also begun to lobby and press the U.S. government for permission to disclose more detail about national security-related requests. A large coalition of Internet companies recently published and endorsed principles calling for world governments to reform surveillance law, including an end to bulk collection of Internet communications, judicial authorization of surveillance and transparency.

Exceptional Behavior

Until recently, two of America’s largest communications carriers – AT&T and Verizon Communications – which also allegedly play major roles in U.S. government surveillance programs – have steadfastly refused to disclose any information regarding government requests for customer data, or to take a stand on the underlying issues of free expression and privacy. The companies’ refusal stood in stark contrast to their own privacy policies and corporate codes of conduct, which state that privacy and customer trust are critical to the success of their businesses.

The telecommunications companies are familiar with some of these issues from past experience. In December 2005, for example, media organizations reported that AT&T and other carriers had agreements with the federal government, dating back to 2001, to systematically gather information flowing on the Internet through the company’s network. Following those reports, more than 40 lawsuits were filed against communications carriers collectively seeking hundreds of billions of dollars in damages. It took an act of Congress (the FISA Amendments Act of 2008) to provide retroactive immunity to the communications carriers.

More recently, The New York Times disclosed that for at least six years, law enforcement officials working on a counternarcotics program have had routine access, using subpoenas, to an enormous AT&T database that contains the records of decades of Americans’ phone calls — parallel to but covering a far longer time than the NSA’s collection of phone call logs. The initiative, called the Hemisphere Project, covers every call that passes through an AT&T switch, not just those made by AT&T customers, and include calls dating back 26 years. It is estimated that four billion “call detail records” are added to the database – every day.

Both AT&T and Verizon are highly regulated by the government, and both are major contractors for the federal government. Verizon CEO Lowell McAdam, discussing subpoenas and company legal obligations, reportedly told an audience at Cornell University (his alma mater), We are the largest telecommunications provider to the United States government, and you have to do what your customer tells you.”

Taking Action

To address these issues, investors in AT&T and Verizon filed shareholder proposals in the fall of 2013 calling on the companies to publish semi-annual reports detailing how often they have shared information with U.S. or foreign governments and what type of customer information has been shared.

The prime sponsor of the AT&T proposal was the $160.7 billion New York State Common Retirement Fund, which manages assets on behalf of more than one million State employees and retirees. Trillium was the lead proponent of the Verizon proposal. Other investment firms and organizations – including the American Civil Liberties Union of Northern California – co-filed at one or both of the companies.

On December 19, 2013, in a significant breakthrough after a long period of silence, Verizon announced that in January it would publish transparency reports comparable to those published by Internet companies. Verizon’s announcement was followed a day later by a similar announcement by AT&T.

While we are gratified that the companies have apparently embraced our position, we are continuing to push for the reports to be as robust as possible. We are urging the companies to provide data about their compliance rates and specific information about how they are protecting customer privacy – e.g., what they require of government agencies that request user information. Finally, we also believe that the companies should urge the U.S. Department of Justice and the Foreign Intelligence Service Court to allow them to provide more granular information about how many National Security Letters and FISA Orders they receive.

Publication of transparency reports such as these in many ways represents a watershed moment in the effort to curb excessive government surveillance. We’re delighted at the important progress that’s been made and encouraged by the momentum that has developed. However, these reports are just first steps in a long-term effort to press AT&T, Verizon and other companies to be genuine guardians of privacy.

In 2014, we’ll continue to work toward achieving our immediate goal – to bring the rest of the telecom industry on board with transparency reporting – while also highlighting the much broader need for companies of all types to embrace privacy rights which are beneficial to our economy and democracy.

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Jonas Kron is Senior Vice President and Director of Shareholder Advocacy for Trillium. Michael Connor is Executive Director of Open MIC, an organization that has worked with Trillium and other institutional investors to promote a vibrant, diverse media ecosystem through market-based solutions, including shareholder activism.

February 18, 2014 // Boston, MA: Investors today announced the filing of shareholder resolutions at 48 corporations as part of a 2014 proxy season initiative asking companies to annually report their federal and state lobbying. That includes any payments to trade associations used for lobbying as well as support for tax-exempt organizations that write and endorse model legislation.

The lobbying disclosure initiative is a natural extension of ongoing shareholder efforts seeking greater corporate political spending transparency and accountability. Specifically, enhanced lobbying disclosure will enable shareholders to better evaluate whether a company’s lobbying expenditures and actions advance the company’s interests and do not present risks to company value.

A 2014 report by Glass Lewis found that 2013 resolutions relating to political spending of a company were the most common shareholder proposal put forth during the proxy season for the third consecutive year.[1] Reflecting investors’ interest in enhanced disclosure, a rulemaking petition at the Securities and Exchange Commission (SEC) requiring public companies to disclose their political spending to shareholders attracted a record level of support for SEC rulemaking, with more than 700,000 comment letters submitted – the vast majority in support.

While the U.S. Supreme Court’s Citizens United decision and the unprecedented amount of political spending in the 2012 elections attracted a great deal of media attention, company expenditures on federal lobbying far exceed political election contributions, often by more than a 10-to-1 ratio. For example, a 2013 Stanford study found that during the 2010 election, $3.6 billion was spent on federal elections while $7.5 billion was spent on federal lobbying, out of which corporations spent $246 million on federal campaign expenditures but spent at least $5.1 billion on federal lobbying. During the same period, the Chamber of Commerce spent $33 million on political contributions and $302 million on lobbying.[2] These figures do not include state level lobbying expenditures by companies, where there is incomplete disclosure and yearly spending exceeds $1 billion.

Moreover, lobbying by trade associations is supported by corporate contributions that are substantial and largely unreported. For example the Chamber of Commerce spent more than $1 billion on lobbying since 1998, making it the country’s largest lobbying spender. The majority of companies do not disclose the portions of their trade association payments used for lobbying. These payments can create reputational risks for companies. Lobbying disclosure proponents believe companies need to manage these risks by assessing whether their memberships in and lobbying through trade associations accurately represent their corporate interests and policy positions, and that shareholders need to understand their companies’ expenditures for trade association lobbying and the risks they can represent.

The resolutions also ask companies to disclose payments to and membership in tax-exempt organizations that write and endorse model legislation, which includes the American Legislative Exchange Council (ALEC). ALEC approved model legislation based on Florida’s Stand Your Ground law that gained national attention after the tragic killing of teenager Trayvon Martin. In response to investor and grassroots pressure, more than 70 companies, including Amgen, Bristol-Myers Squibb, Coca-Cola, Darden Restaurants, Endo Health Solutions, General Electric, Johnson & Johnson, Kraft, Pepsi, Sallie Mae, Unilever, Visa, Walgreens and Yum! Brands, evaluated the risk to their corporate reputations, compared to the benefits of continuing membership, and made the decision to leave ALEC.

New York State Comptroller Thomas P. DiNapoli, an active proponent of corporate disclosure of both political spending and lobbying, stated, “Transparency is fundamental to strong corporate governance and key to the New York State Common Retirement Fund’s engagement with our portfolio companies.”  DiNapoli’s office oversees the $160.7 billion state fund.  “We need sunlight on lobbying operations so we can evaluate potential risks to our investments. Any political spending, including lobbying, made with shareholder dollars should be disclosed.”

Lee Saunders, president of AFSCME and chair of the AFSCME Employees Pension Plan’s Pension Committee, stated, “Lobbying disclosure is in both companies’ and shareholders’ best interests and will help ensure corporate assets are used in the best interest of the company and its shareholders. There’s a saying that if you’re ashamed to talk about it, then maybe you shouldn’t be doing it. Companies already have this lobbying information so disclosure wouldn’t be difficult.”

Timothy Smith, director of environmental, social and governance (ESG) shareowner engagement at Walden Asset Management and one of the coordinators of this initiative, stated, “Over the last 10 years, investors increasingly have urged companies to disclose their spending aimed at influencing elections. This year, investors have once again taken a logical next step and asked companies to disclose their direct and indirect lobbying activities. Whether the issue is environmental impact, consumer protection, financial reform or shareholder rights, it is important for investors to understand how company dollars are spent to influence our laws and regulations by lobbying activities. While many companies have modest government affairs budgets, others spend tens of millions of dollars annually on lobbying directly and through trade associations. In addition, many companies work through lobbying organizations like the American Legislative Exchange Council (ALEC) to influence legislation and regulation at the state level such as their attack on renewable energy regulation. We believe it is timely and appropriate for companies to be much more transparent.”

This is the fourth year proposals asking for lobbying disclosure were filed by investors. In 2013, 70 proponents filed 50 proposals, and the 40 that went to vote averaged 26 percent support. For 2012, 46 proponents filed 38 proposals, and the 20 that went to vote averaged 24 percent. And in 2011, the AFSCME Employees Pension Plan filed six proposals and the five that went to vote averaged 24 percent. The proposals led many companies to improve their lobbying disclosure, leading to settlements and improved disclosure at more than 25 companies, including 3M, Accenture, Amgen, Bristol-Myers Squibb, Endo Health Solutions and St. Jude Medical.

Sixty investors joined in filing and co-filing the resolution seeking comprehensive disclosure of corporate lobbying. This unique investor network is organized by the AFSCME Employees Pension Plan and Walden Asset Management, a division of Boston Trust & Investment Management Company.

Specifically, the resolution asks for disclosure of:

1. Company policy and procedures governing lobbying, including that done on the company’s behalf by trade associations.
2. Payments used for lobbying and grassroots lobbying communications.
3. Membership in and payments to any tax-exempt organization that writes and endorses model legislation.
4. Decision-making processes and oversight by management and the board.

Among companies receiving lobbying disclosure resolutions for 2014 are:

Abbott Laboratories (ABT)

Accenture (ACN)

Alliant Techsystems (ATK)

Allstate (ALL)

Altria Group (MO)

Ameren (AEE)

Amgen (AMGN)

AT&T (T)

Bank of America (BAC)

BlackRock (BLK)

Boeing (BA)

Celgene (CELG)

Chevron (CVX)

Citigroup (C)

Comcast (CMCSA)

ConocoPhillips (COP)

CVS Caremark Corporation (CVS)

Devon Energy (DVN)

Dominion Resources Services (D)

EBay Inc. (EBAY)

Emerson Electric (EMR)

ExxonMobil Corporation (XOM)

Facebook (FB)

FirstEnergy (FE)

General Dynamics (GD)

Google (GOOG)

Honeywell (HON)

IBM (IBM)

JPMorgan Chase (JPM)

Lorillard (LO)

Marathon Oil Company (MRO)

Marathon Petroleum (MPC)

Morgan Stanley (MS)

Norfolk Southern (NSC)

Peabody Energy (BTU)

Philip Morris International (PM)

Raytheon (RTN)

Reynolds American (RAI)

Sallie Mae (SLM Corporation)(SLM)

Time Warner Cable (TWC)

United Parcel Service (UPS)

United Technologies (UTX)

UnitedHealth Group (UNH)

Verizon Communications (VZ)

VISA U.S.A. Inc. (V)

Wal-Mart (WMT)

Yahoo (YHOO)

Filers of Lobbying Disclosure Resolutions

Public Pension Funds

State of Connecticut Treasurer’s Office

New York State Common Retirement Fund

Labor Pension Plans and Organizations

AFSCME Employees Pension Plan

AFL-CIO

CTW Investment Group

United Steelworkers

Asset Management Companies

Boston Common Asset Management

Domini Social Investments

First Affirmative Financial Network

Green Century Funds

Rockefeller and Co.

Sustainability Group, Loring, Wolcott & Coolidge

Trillium Asset Management

Walden Asset Management

Zevin Asset Management

Foundations

Brainerd Foundation

Center for Community Change

Christopher Reynolds Foundation

Edward W. Hazen Foundation

Haymarket People’s Fund

Lemmon Foundation

Max and Anna Levinson Foundation

Merck Family Fund

Needmor Fund

Oneida Tribe of Indians Trust Fund

Russell Family Foundation

Tides Foundation

Non-Profit Institutional Investors

Manhattan Country School

Religious Filers

Benedictine Sisters Charitable Trust, Boerne, TX

Benedictine Sisters of Baltimore – Emmanuel Monastery

Benedictine Sisters of Mount St. Scholastica

Catholic Health East

Community Church of New York

Congregation of Divine Providence, San Antonio, TX

Congregation of Divine Providence, San Antonio, TX

Congregation of Sisters of St. Agnes

Congregation of the Sisters of the Holy Cross

Congregation of the Sisters St. Joseph of Brighton

Dignity Health

Episcopal Church

First Parish Unitarian Universalist, Cambridge, MA

First Unitarian Congregational Society in Brooklyn

Friends Fiduciary Corporation

Glenmary Home Missioners

Marianist Province of the United States

Maryknoll Fathers and Brothers

Mercy Investment Services

Missionary Oblates of Mary Immaculate

Monasterio Pan de Vida

Providence Trust

Province of St. Joseph of the Capuchin Order

Sisters of Charity of the Blessed Virgin Mary

Sisters of Notre Dame

Sisters of Notre Dame de Namur, Boston

Sisters of the Holy Family, CA

Sisters of the Holy Spirit and Mary Immaculate

Unitarian Universalist Association

Individuals

Gun Denhart

Gwendolen Noyes

Ronald Trimmer

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Contact: Timothy Smith, Walden Asset Management, (617) 726-7155, tsmith@bostontrust.com

Charles Jurgonis, AFSCME Employees Pension Plan, (202) 429-1007

This release was originally published by AFCME (American Federation of State, County and Municipal Employees) and Walden Asset Management who are solely responsible for its content.

February 10, 2014 / / BOSTON, MA: Ceres released a new report on Securities & Exchange Commission actions to improve corporate disclosure of material climate risks and opportunities, finding that the SEC has not prioritized this issue. The report, Cool Response: The SEC and Corporate Climate Change Reporting, surveyed SEC comment letters sent to companies since 2010, when the SEC recognized the financial impacts of climate change by issuing Interpretive Guidance on climate disclosure. It found that only three comment letters related to climate change were issued in 2012 and 2013, and 49 in 2010 and 2011, following the issuance of the guidelines. In addition, the report analyzed S&P 500 climate reporting, finding that a majority of disclosure was brief and largely superficial.

“The fact that the SEC is slipping backward rather than driving progress on climate risk disclosure is troubling, especially since a large number of companies failed to say anything at all about climate change in their annual filings last year,” said Maryland State Treasurer Nancy Kopp. “Climate risks and opportunities are greater than ever before, yet it seems the Commission is paying less attention than when formal guidance was issued. It is my hope that the Commission will once again demonstrate leadership on this critical issue.”

The report calls on the SEC to prioritize climate reporting, by issuing more comment letters to companies in key sectors facing material risks and opportunities. It also recommends that the SEC create a federal interagency working group focused on the business risk of climate change and an SEC task force to focus on reviewing climate change disclosures. Ceres will be organizing investor meetings with SEC staff and commissioners to discuss the findings.

For more information: Contact Jim Coburn at (617) 247-0700 or coburn@ceres.org

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This press release was originally published by Ceres which is solely responsible for its content.

Trillium Asset Management, LLC is the oldest investment advisor exclusively focused on sustainable and responsible investing (SRI).We believe that environmental, social, and governance (ESG) factors play an integral role in the investment process, which can lower portfolio risk and help identify the best-managed companies. Our firm manages multiple investment strategies, including All Cap Core, Fossil Fuel Free, Growth and Income, Large Cap Core, SMID Cap Core, and Sustainable Opportunities.

Research Analyst responsible for the Information Technology and Telecom sectors

Principal Responsibilities

• Research, analyze, and recommend publicly traded, alpha generating investments in the Information Technology and Telecom sectors to Trillium’s Portfolio Managers

• Continually analyze the business strategy, operating, financial management, and ESG performance of Info Tech and Telecom companies on internal approved company list

• Determine, monitor, and integrate material ESG opportunities and risks into industry and company analyses and recommendations

• Assign ratings to all stocks responsible for on internal approved company list

• Communicate sector/industry/company views to internal Investment Management Committee members, particularly providing updates on companies in existing investment strategies and making stock position change recommendations for investment strategies

• Maintain regular, two-way dialogue with Trillium Advocacy team members on ESG issues

• Contribute to projects that help enhance the team’s contributions to the firm’s investment process and productivity

• Participate in firm business development opportunities and meetings with existing clients

Competencies for Success/Requirements

• CFA or CFA Level 3 candidate and/or MBA/MSF

• Minimum of three years research analysis experience in financial services industry

• Ability to identify cyclical, secular, and structural changes in Info Tech and Telecom sectors

• Demonstrate knowledge of ESG issues in Info Tech and Telecom sectors’ various industries

• Productive and efficient employee in past professional financial industry work experience

• Thorough knowledge of and fluency in various valuation techniques, including DCFs

• Proficient in MS Excel, Word, and PowerPoint and working experience with Factset

• Solid communication skills, including writing and presentation skills

• Attention to detail and ability to multi-task and set priorities

• Strong work ethic, high integrity, and strong values

Willingness to travel to attend sector, industry, and company research oriented events

Position is located in the firm’s Boston office

To apply please send your resume and cover letter to: Michelle McDonough, mmcdonough@trilliuminvest.com. Please include examples of research analysis, investment recommendations (including valuation work), and interest in SRI. Please do not call.

Trillium provides equal employment opportunities (EEO) to all employees and applicants for employment without regard to race, color, religion, gender, sexual orientation, gender identity or expression, national origin, age, disability, genetic information, marital status, amnesty, or status as a covered veteran in accordance with applicable federal, state and local laws.

February 6, 2014: New York State Comptroller Thomas P. DiNapoli, as trustee of the $160.7 billion New York State Common Retirement Fund, along with New York City Comptroller Scott Stringer and a coalition of 19 investors, released letters written to four major corporate sponsors of the upcoming Winter Olympic Games in Sochi, Russia that failed to respond to an earlier request they use their influence to ensure the protection of the human rights of Russian citizens, as well as athletes and visitors to the Olympics.

The letters follow an initial outreach to ten companies in December regarding Russia’s recently enacted laws restricting the rights of its lesbian, gay, bisexual and transgender (LGBT) citizens to free speech and freedom to assemble. Of the ten, six companies responded: McDonalds, Visa, General Electric, Dow Chemical, Coca-Cola and Omega (Swatch). Letters sent to Panasonic, Proctor & Gamble, Samsung and AtoS were not answered.

“Corporate sponsors of the 2014 Sochi games have already been targeted with high-profile protests and calls to boycott their products and services,” DiNapoli said. “Because of the recently enacted discriminatory laws in Russia, Olympic sponsorship may end up tarnishing the sponsors’ brands and reputations and negatively impacting company value. As shareholders we cannot sit idly by and let that happen. Corporate sponsors should stand up for human rights and the respect and equality symbolized in the Olympic movement.”

“With the Olympics starting Thursday, the eyes of the world will be on Sochi and its corporate sponsors,” said Stringer, investment advisor to the nearly $150 billion New York City pension funds. “It is long past time these sponsors take a stand and condemn these discriminatory laws. We want our portfolio companies to protect their reputations and shareholder value. There’s no excuse for being silent on these issues.”

The letters cite the reputational risk to the Olympic sponsors if they fail to send a strong message that recently enacted laws that target the rights of LGBT people are not acceptable. The obligation for these companies to strive toward responsible and sustainable social policies and practices to protect shareholder value is at the heart of the recently promulgated United Nations Guiding Principles on Business and Human Rights.

The U.N. principles state that companies have an obligation to respect human rights and remedy abuses where they affect their business operations.

The 21 investors, with a combined $327 billion of assets under management, again urged the Olympic corporate sponsors to:

• Ensure their nondiscrimination policies are strong, inclusive and enforced globally, especially in regard to employees stationed or on location in Russia;
• Call on the leaders of the Russian Federation to rescind the laws that deprive members of Russia’s LGBT community of freedom of speech and freedom of assembly, and declare their commitment to equality irrespective of sexual orientation or gender identity; and
• Call on the International Olympic Committee to obtain firm and express commitments from the Russian government that ensure the safety and human rights of all athletes and attendees of the Winter Games and visitors to the Games’ venues.

Signatories to the letter include Clean Yield Asset Management, Zevin Asset Management, Arjuna Capital, Harrington Investments, Oneida Tribe of Wisconsin, Christopher Reynolds Foundation, Newground Social Investment, Pax World, First Affirmative Financial Network, Sisters of St. Francis of Philadelphia, Unitarian Universalist Association, Domini Social Investments, Trillium Asset Management Corporation, As You Sow Foundation, The Tides Foundation, Nathan Cummings Foundation, The Sustainability Group at Loring, Wolcott & Coolidge, Northstar Asset Management and Calvert Group.

“Corporate sponsors have significant influence over the International Olympic Committee and host countries,” said Shelley Alpern, director of Social Research and Shareholder Advocacy at Clean Yield Management. “There is simply no justification for silence and inaction on the part of Olympic corporate sponsors on this important issue.”

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Copies of the new letters can be found at: http://www.osc.state.ny.us/press/releases/feb14/Sochi_Olympics_Letter.pdf

This press release was originally published by The Office of the New York State Comptroller, which is solely responsible for its content.

Every investment across every asset class has social and environmental impacts—positive and negative. That goes as much for investments that fail to take environmental, social or governance issues into consideration as to those that explicitly pursue sustainability, corporate responsibility, or positive social and environmental impact.

A well-diversified portfolio holds investments diversified across several asset classes, including (but not necessarily limited to) equity (stock), fixed income (bonds) and cash. Investments within each asset class are expected to behave similarly with respect to such economic variables as changing interest rates, rates of economic growth, and rates of inflation. Typically, a fixed income allocation is used in a portfolio to provide income and to reduce portfolio volatility, compared with an equity allocation. In times of recession, bonds offer greater security than equities because debtors (such as corporations and Federal, state or local governments) are obligated to pay interest and to repay debt before making any distributions to equity holders. During the 2008 market downturn, nearly every market-based investment declined – except U.S. Treasury bonds, as investors sought the assurance that they would get their investment returned at maturity. However, when interest rates rise significantly, bonds holdings can drop in value.

Investors can increase their positive Environmental, Social and Governance (ESG) impact with fixed income holding by re-allocating funds into municipal and corporate bonds or bond funds that finance projects with social or environmental impacts that align with their values.

For example, the World Bank has issued almost sixty green bonds since 2008, with an estimated total value of over $4 billion. A World Bank green bond has the same credit quality as any other World Bank bond, but the proceeds are specifically designated by the World Bank for climate-related projects. These bonds are triple-A rated, secured by the full faith and credit of the World Bank, and not linked to the performance of the projects, so investors do not take any project or country risk, according to the offering documents.[1]

The World Bank Green bonds are “Use of Proceeds” bonds. While investors do not know in advance the specific projects that will be funded with their money, the Bank earmarks the funds for projects which address one or both of two categories: Climate mitigation and climate adaptation.

World Bank Green Bonds were among the first fixed-income investments to allow the investor to be confident that funding would be directed to carbon footprint reduction and improved energy efficiency. The bonds have provided debt financing for large-scale projects, including rapid transit systems in Colombia, China, Mexico and India as well as infrastructure projects in Jamaica, Turkey, and the Ukraine that reduce the energy consumed and associated greenhouse gas emissions in medium-sized and large industrial enterprises. Coal and nuclear power generation projects are explicitly excluded from consideration.

After the ground-breaking work of the World Bank, other supranational issuers have followed suit. For example, in the fall of 2013, the African Development Bank (AfDB) launched its inaugural Green Bond transaction. The $500 million offering was placed with three dozen investors, including Trillium Asset Management.

“This first Green Bond of the African Development Bank is part of its quest to use public-private partnerships to meet the challenges of development in Africa. It is another opportunity for private capital to earn market rates of return, while supporting sustainable and low-carbon growth in the continent,” says Donald Kaberuka, President, African Development Bank Group.

The proceeds of the AfDB Bond support the financing of low carbon and climate resilient projects in line with AfDB’s long term strategy which focuses on inclusive and green growth. Projects to be financed include those in renewable energy generation, energy efficiency, vehicle energy efficiency fleet retrofit or urban transport modal change, biosphere conversation projects, solid waste management, fugitive emissions and carbon capture, urban development, and water supply and access.[2]

The Green Bond market is developing rapidly. Additional issuers during 2013 include the Commonwealth of Massachusetts, the first municipality to issue a Green Bond, and Bank of America, which inaugurated a corporate Green Bond issue in November.

Trillium clients have also invested fixed income assets with Community Capital Management (CCM), which specializes in managing impact investments. CCM’s CRA Qualified Investment Fund Retail Shares (Ticker: CRATX) were created for individual investors and their advisors interested in the Fund’s impact investing strategy, which had been designed to meet the Community Reinvestment Act funding requirements for banks. In this share class, individual investors have the opportunity to invest in a mutual fund that proactively screens for investments that support community development such as affordable housing, job creation, small business development, and environmentally sustainable initiatives.[3]

Another interesting concept under development is the social impact bond. This new financing model is under development, with the goal of accelerating social innovation and improving government performance by combining performance-based payments and market discipline. Advocates for the approach believe it has the potential to improve results, overcome barriers to social innovation, and encourage investment in cost-saving preventive services.

Under the social impact bond model, a government contracts with a private-sector financing intermediary to obtain social services. The contract specifies explicit performance targets. The bond issuer acquires capital by issuing bonds to private investors in exchange for a share of government payments that become available if the performance targets are met. [4] The bond issuer uses these operating funds to contract with service providers to deliver the services necessary to meet the performance targets.

The government payments to the intermediary are contingent upon achieving performance targets. If the outlined social outcome isn’t met by the agreed upon date—while also meeting the monetary performance target, the government pays nothing back to investors.

For example, the Massachusetts Juvenile Justice Social Innovation Financing Project has recently launched a 5 year pilot program that is focused on reducing incarceration rates among high-risk young men that were formerly involved in the justice system. The project’s goal is a 45% reduction in incarcerations (248 incarcerations / 224,205 days of incarceration) among the targeted population, resulting in better social and fiscal outcomes while also generating long-term cost savings for the state.[5]

If the project achieves its goal, then the government pays investors back with a financial return. And, of course, the potential monetary reward is in addition to the positive social impact.

The tools and impact investment options may be different in each asset class, and those available for fixed income investors are less well known than the options for either public or private equity investors. However, there is no question that there are opportunities to leverage all aspects of a portfolio for positive impact.

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Editor’s Note: This article appeared in the Winter 2014 issue of Trillium’s newsletter, Investing For a Better World.

[1] http://treasury.worldbank.org/cmd/htm/USD550MillionGreenBonds.html

[2] http://www.afdb.org/en/news-and-events/article/afdb-launches-3-year-usd-500-million-inaugural-green-bond-12359/

[3] http://www.crafund.com/general.php?category=Retail-Investors

[4] http://www.americanprogress.org/issues/2011/02/pdf/social_impact_bonds.pdf

[5] http://rocainc.org/what-we-do/pay-for-success/

February 4, 2014: Trillium Asset Management is pleased to announce that we have successfully withdrawn a shareholder proposal at Valmont Industries, Inc. (NYSE: VMI) following commitments from the company to improve disclosures of measurement around greenhouse gas reduction initiatives.

The company has agreed to establish and report an emissions baseline for its coatings division by December 31, 2015. Valmont will also provide more contextual information on its goals to improve energy efficiency and reduce emissions as reported in their Global Reporting Initiative (GRI) report. These commitments focus on the company’s coatings operations – their most carbon intensive business segment.

Trillium commends Valmont for addressing this important issue and for providing more transparency as they move toward greater energy efficiency.

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For more information please contact Randy Rice at rrice@trilliuminvest.com or (617) 532-6680.

By Pam McMichael, Executive Director, Highlander Center

“Highlander has been an anchor for almost every major social justice movement in this country. From labor rights to civil rights, from environmental justice to immigrant justice, Highlander has been at the forefront of social justice work for 75 years.” - The Honorable John Lewis, United States Representative

The Highlander Research and Education Center serves as a beacon for progressive community organizing and grassroots leadership development — across race and generations. We work with communities in the South and across the nation to connect people, and develop skills and organizing strategies to increase the movement for justice, equality and sustainability.

Founded in 1932 in Monteagle, TN, Highlander seeks to address the systemic problems of poverty and injustice in the South, using the philosophy that those affected most by an injustice can and should lead efforts to solve it. It is a philosophy that guides our work to this day.

Noted civil rights activist Septima Clark came to Highlander in 1954; first as a participant in an integration workshop and later becoming Highlander’s Director of Education. “Knowledge,” she said, “could empower marginalized groups in ways that formal legal equality couldn’t.”

Among the first places in the south that brought people together, crossing historical racial divides, Highlander has inspired, connected and trained generations of leaders. From its founding — to the movements of the present day — Highlander is an indispensable resource for the social justice community, a vital center for incubating strategies, best practices, research and movement building.

Highlander is now engaged in a capital campaign to ensure our capacity to provide these critical resources for the next century of leaders in the movement for social, economic and environmental justice. Through our Generations to Come Capital Campaign we are also improving our facilities to become models of equitable sustainability and accessibility. We are working to ensure that Highlander’s work on the intersection of labor, immigration, race, land and food justice, regionally, nationally and internationally, will continue for decades. To date, we have raised half of the campaign’s $3.2 million goal.

We believe that Socially Responsible Investing is a critical part of our work and our board was eager to work with an investment firm that integrates Environment, Social and Governance factors, as well as active shareholder engagement, into their investment process.

Extreme right-wing strategies count on holding the Southern electoral bloc by repressing civic participation and deepening economic and racial divides. Ecosystems from Appalachia to the Gulf Coast have been ravaged by extraction, while climate change and pollution of natural resources threaten communities regionally and across the globe. Efforts to disenfranchise voters are sweeping the South, and the rights of people of color, women, immigrants, workers, the poor and LGBTQ people are still under attack. The current political map reinforces the pivotal role of the South, and if the political landscape of the South is not changed substantially, it is questionable whether national progressive gains can be sustained, the country governed effectively, or democracy thrive.

Yet, there are herculean efforts to exercise democratic rights, strong efforts for just immigration, and worker organizing is moving into more expansive kinds of community partnerships. Communities across the South are working to improve education, decriminalize youth, hold government accountable, fight corporate interference in democracy, and develop alternative economic systems that sustain people instead of exploit them. Highlander makes key contributions to each of these efforts and brings its legacy, vision, credibility, methods, skills, creativity, resources, political education and analysis to effect lasting impact.

This is the work we believe crucial to achieving a socially just, sustainable economy and a national progressive movement—the work, as Septima Clark said, of “broadening the scope of democracy to include everyone and deepening the concept to include every relationship.”

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Editor’s Note: This article appeared in the Winter 2014 issue of Trillium’s newsletter, Investing For a Better World. To learn more about or engage with the work of the Highlander Research & Education Center visit www.highlandercenter.org.

The New York Times recently published an article about the increased attention that foundations are giving their fossil fuel investments.

Diane Caldwell writes:

“Seventeen foundations controlling nearly $1.8 billion in investments have united to commit to pulling their money out of companies that do business in fossil fuels, the group plans to announce on Thursday.

The move is a victory for a developing divestiture campaign that has found success largely among small colleges and environmentally conscious cities, but has not yet won over the wealthiest institutions like Harvard, Brown and Swarthmore.

But the participation of the foundations, including the Russell Family Foundation, the Educational Foundation of America and the John Merck Fund, is the largest commitment to the effort, and stems in part from a push among philanthropies to bring their investing in line with their missions.”

You can read the entire article here.

Reuters recently published an article about Trillium’s successful withdrawal of our shareholder resolution with Verizon Communications.

Ross Kerber writes:

“Verizon Communications Inc shareholders said on Tuesday they have withdrawn a resolution asking the company to disclose details of customer information that it shares with law enforcement, saying the company had already met key requests.

Jonas Kron, senior vice president of resolution sponsor Trillium Asset Management, said the filers withdrew the measure after the company disclosed more details this month of its information-sharing with government agencies.

“Publication of these reports makes strong business sense and will facilitate the critical and long-term conversation about government surveillance programs that is so desperately needed,” Kron said in an e-mailed statement.”

You can read the entire article here.

JANUARY 28, 2014 // BOSTON, MA: A coalition of investors, which had requested that Verizon Communications Inc. (NYSE: VZ) publish regular reports on government and law enforcement requests for confidential customer data, today commended the company for publishing its first report and made recommendations for improving future reports.

The coalition was led by Trillium Asset Management (Trillium), which filed a shareholder resolution on behalf of Park Foundation, in close partnership with Open MIC, a non-profit organization that works to foster more open and democratic media.

The investors’ announcement follows yesterday’s news that the Obama Administration will permit more detailed disclosures about the number of national security orders and requests issued to communications providers, and the number of customer accounts targeted under those orders and requests.

“We are gratified that Verizon has embraced the position which shareholders set out in a proposal filed in November – that transparency reports which provide greater clarity about relationships between the company and governments are important steps in rebuilding trust,” said Jonas Kron, Trillium’s Senior Vice President and Director of Shareholder Advocacy. “Publication of these reports makes strong business sense and will facilitate the critical and long-term conversation about government surveillance programs that is so desperately needed.”

Michael Connor, Executive Director of Open MIC, commended Verizon for reporting information about the types of U.S. government requests it receives, including those in the form of National Security Letters. “We also appreciate that Verizon has articulated support for continuing and robust reporting by all governments of their activities,” Connor said.

Jon Jensen, Executive Director of the Park Foundation, said, “As a shareholder in Verizon, the Foundation appreciates management’s and the Board’s willingness to respond to shareholder concerns on such an important public policy issue.”

The shareholders said that while they would have preferred that Verizon’s initial report provide information regarding the company’s rate of compliance with government requests, they are pleased that the company agreed to do so in the future and has subscribed to the need for this information.

Recommendations for making the Transparency Report more useful for investors include:

• Information about the number of national security orders and requests the company has received as permitted by the Department of Justice;
• Information about the number of accounts/users that have been impacted;
• A meaningful and robust discussion of how Verizon is protecting user privacy rights;
• Greater detail on the information provided to foreign governments.

“In issuing this report Verizon has taken an important first step and we have accomplished our initial goal of helping to establishing transparency reports as best practice in the telecommunications industry,” said Trillium’s Kron. “The challenge now is for Verizon – and other companies – to publish reports that are substantive and meaningful.”

In view of Verizon’s actions, Kron said, this year’s shareholder proposal regarding Transparency Reports has been withdrawn.

Filers of the Verizon proposal were Trillium Asset Management LLC, American Civil Liberties Union of Northern California and Park Foundation.

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For more information:

Michael Connor, Open MIC; 212-875-9381; mconnor@openmic.org
Jonas Kron, Trillium Asset Management, 503-894-7551; jkron@trilliuminvest.com

About Trillium: Trillium Asset Management, LLC is the oldest independent investment advisor devoted exclusively to sustainable and responsible investing. With over $1.4 billion in assets under management, Trillium has been managing equity and fixed income investments for high net worth individuals, foundations, endowments, religious institutions, and other nonprofits, since 1982. A leader in shareholder advocacy and public policy work, Trillium’s goal is to deliver both impact and performance to its investors.

About Open MIC: Open MIC – the Open Media and Information Companies Initiative – is a non-profit organization that works with institutional investors to promote a vibrant, diverse media ecosystem through market-based solutions, including shareholder activism.

About Park Foundation: The Foundation is dedicated to the aid and support of education, public broadcasting, environment, and other selected areas of interest to the Park family.

The views expressed are those of the authors as of the date referenced and are subject to change at any time based on market or other conditions. These views are not intended to be a forecast of future events or a guarantee of future results. These views may not be relied upon as investment advice. The information provided in this material should not be considered a recommendation to buy or sell any of the securities mentioned. It should not be assumed that investments in such securities have been or will be profitable. To the extent specific securities are mentioned, they have been selected by the authors on an objective basis to illustrate views expressed in the commentary and do 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 by us 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.

January 28, 2014: Fifth Third Bank (NASDAQ: FITB) recently announced that it will no longer enroll customers in its ‘Early Access’ deposit advance service after January 31, 2014 and the bank will phase out the service to existing customers by year-end.

This announcement comes following ongoing pressure from Trillium Asset Management (Trillium), along with other investors and the Center for Responsible Lending.

In 2012 Trillium filed a shareholder proposal, with the bank asking it to address “the adequacy of the company’s direct deposit advance lending policies in addressing the social and financial impacts” of “extending high-cost direct deposit advances that resemble payday loans”.

In that shareholder proposal Trillium reiterated that the FDIC has stated that “providing high-cost, short-term credit on a recurring basis to customers with long-term credit needs is not responsible lending, increases institutions’ credit, legal, reputational, and compliance risks; and can create a serious financial hardship for the customer.”

Trillium is pleased that Fifth Third has made the decision to phase out its deposit advance product. This product also posed regulatory, legal, and reputational risks to the company.

In April 2013 the Federal Reserve issued a supervisory statement emphasizing the “significant consumer risks” the deposit advance product poses and highlighted some earlier Consumer Finance Protection Bureau (CFPB) findings regarding concerns over sustained and harmful repeat usage. The CFPB advised that examiners thoroughly review bank payday products for compliance with laws prohibiting unfair and deceptive practices.

We have been concerned about this product for years as research has long shown that the cycle of debt created by these kinds of loans may cause serious financial harm to borrowers, including increased likelihood of bankruptcy, paying credit card debts and other bills late, delayed medical care, and loss of basic banking privileges because of repeated overdrafts.

We are mindful that predatory lending practices have cost households billions in fees and catalyzed instability in both the housing and financial markets. Payday lending can perpetuate this instability, draining productive resources from the economy as a whole.

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For more information, please contact Randy Rice at rrice@trilliuminvest.com or (617) 515-6889

The Associated Press recently published an article on fossil fuel-free investing, which ran in the Washington Post, Boston Globe and a dozen other media outlets.

Jonathan Fahey writes:

“[W]hile student groups around the country are calling for college endowments to stop investing in fossil fuel companies, and some religious groups have done already so, it’s much trickier for individual investors.

Matt Patsky, chief executive of Trillium Asset Management, an investment adviser in Boston that has long helped endowments, religious organizations and wealthy families invest in socially-responsible ways, says that about a decade ago clients started asking the firm to create investment strategies that left out fossil fuel companies.

The firm, which manages $1.4 billion, now strips out investments in oil and gas companies, coal companies and utilities that generate electricity with mostly fossil fuels for these clients. The firm then adds shares of other companies that attempt to mirror the performance of these traditional energy companies. He says the firm has been able to generate returns as good or better than the broad market, though he says it is not possible to generate dividends quite as high as the total market.”

You can read the entire article here.