Trillium Asset Management

This summer, Trillium’s advocacy team spent time assessing its past shareholder advocacy efforts and began crafting new campaigns to launch in the fall. This season, we’re pleased to share that our focus remains on preserving workers’ rights during union organizing, upholding human rights in the retail supply chain, and encouraging climate-supportive lobbying in the financial sector. During the quarter, we entered 144 new engagements and joined seven sign-on letters appealing for reforms at major companies. These included: • Writing a letter to L’Oreal to request a meeting about their chemical management strategy, following a class action lawsuit about the safety of its chemical hair straighteners, which have been linked to uterine cancer and used disproportionately by Black women; • Extending our engagement with American Water Works, including holding meetings with Centreville Citizens for Change, a group advocating for environmental justice and clean drinking water in Cahokia Heights, Illinois, inviting perspectives from an affected community;  • Co-filing a shareholder proposal at Nike, which received 20% of the vote at its recent annual shareholders' meeting, urging the athletic lifestyle brand to adopt human rights protections in its international supply chain; • Continuing work with Apple to successfully negotiate labor contracts with unionizing employees, including at an Apple store in Towson, Maryland, where employees secured a nearly 10% raise and equal benefits as employees at non-unionized locations; and • Entering discussions with Nestle to ensure living wages in their cocoa supply chain, and continuing dialogue about how the company can scale its income accelerator program in Côte d’Ivoire to match “living incomes” for farmers in the region.   In addition to these actions, we’re actively engaging with companies to maintain their ESG and DEI commitments, address surging electricity demands due to AI consumption, and defend our democratic institutions from further erosion. To read the latest about Trillium’s shareholder advocacy work, read the full report posted in the comments: 

This quarter brought investors weeks of whiplash, as a collision of changes across the geopolitical, monetary policy, and labor market spectrum drove high volatility throughout the period. In July, a weak debate performance saw President Joe Biden replaced by Vice President Kamala Harris on the Democratic ticket. The VP and former President Donald Trump have been entwined in an anxiously tight race ever since. Both candidates’ fiscal plans would likely raise the national deficit, though Trump’s proposed tariffs would dramatically impact trade and labor markets. As voters prepare to cast their ballots, global markets are bracing for economic headwinds regardless of who secures the presidency — especially if the election results are contested and the nation devolves into civil disorder. On the monetary policy front, sweeping mandates surprised investors domestically and overseas. The Bank of Japan issued an unexpected interest rate hike, sending shockwaves across global and equity markets, and in the US, the Fed recently cut its policy rate by 50 basis points, where equities rallied on the news. While inflation cooled, softening unemployment inspired an air of cautious optimism, even as GDP growth tracked upward. Stock leadership broadened as the Mag 7 tech stocks pared their gains and provided an opening for smaller companies to outperform. Could we be headed for a soft landing? As the world watches how the US election unfolds, we’re closely monitoring the market to seek quality in our holdings. Read about Trillium’s approach and more in our latest Economic and Market Outlook report. Link in comments.

Last month, Nike shareholders convened to cast their votes for the athletic apparel brand — but attempts to strengthen the brand’s corporate accountability were all but left on the table. Trillium Asset Management, LCC (Trillium) was among the investment firms that submitted five proposals urging Nike to address issues ranging from climate change, gender equity, and labor rights in its corporate governance. All of the proposals were rejected. It wouldn’t be the first time Nike refused shareholders’ demands. Since 1996, every proposal to reach a vote has been struck down by the sportswear giant, according to ProPublica — in no small part because of the company's dual class structure and the Knight family's disproportionate control. Speaking with the publication following the vote, Trillium Director of International Shareholder Advocacy, Lisa Hayles, called out the company for “stonewalling.” “It’s very disappointing to see this lack of response, lack of engagement from the company, coupled with what we know about the layoffs and restructuring of the staff working on sustainability,” Lisa said. “It calls into question: What is the company’s commitment?” Last year, Trillium joined Domini Impact Investments in writing to Nike to address human rights and worker protections in its supply chain, without response. At this latest meeting, we co-filed a shareholder proposal to urge Nike to explore worker-driven social responsibility programs to provide more protection than voluntary agreements. Our labor proposal received nearly 20% of the non-insider vote and was backed by one of Nike’s largest investors. Additional press coverage of our proposal could push the company to enhance worker protections and inspire change across its supply chain. At Trillium, we remain committed to using the tools of shareholder advocacy. Though none of the proposals received a majority vote, we believe they sent a strong message to Nike that workforce and environmental issues matter to investors. Read ProPublica’s wrap-up of Nike’s annual meeting. Link in comments.

We’re still buzzing with energy after joining fellow portfolio managers last week for “Stepping Outside the Echo Chamber,” a morning full of insightful conversations exploring the evolving state of investing. The live event, held in NYC, featured Trillium’s own Mitali Prasad, CFA on a special discussion panel, where she shared fresh perspectives about redefining the growth vs. value debate. While Mitali says regardless of investing style, investors should be wary about playing to the extremes. “You’re looking for growth at a reasonable price,” she said. “So, there’s a catalyst for growth, but we don’t want to be chasing momentum.” At Trillium, we believe smart investing requires a balanced approach of growth and valuation, which we then filter through our ESG-focused lens. Learn more about our investment approach on our website: https://lnkd.in/gR_CXG6r

We are thrilled to announce that Kathleen (KK) Bochman, CFA, has joined our Portfolio Management team! She brings considerable experience in portfolio management and sustainable investing to Trillium. John Quealy, our Chief Investment Officer, shared his enthusiasm: “KK’s deep expertise in sustainable investing aligns seamlessly with our collaborative approach towards managing strategies consistent with our firm values of equity, ecology, and economy. We are confident that her insights will elevate our ability to deliver investment solutions that not only drive returns but also foster a more sustainable future for our clients and the communities we serve.” KK brings a wealth of experience from her previous roles at Moderna, Fidelity Investments, and Loomis Sayles & Company. Her expertise in ESG data integration, climate transition strategies, and stewardship will be invaluable as we continue to align our investment objectives with positive societal impact. Please join us in welcoming KK to Trillium.

With the Supreme Court’s decision to overturn Roe v. Wade, widespread abortion bans or restrictions are putting women’s health equity at risk.  Women make up half the population, and while the connection between investors and reproductive rights may seem unclear to some, underprioritizing their needs could potentially lead to adverse economic outcomes.   On Wednesday, Oct. 9, Trillium will join RHIA Ventures and the Global Reporting Initiative in Toronto for a critical discussion to underscore the link between “Investors & Reproductive and Maternal Health Care.” Lisa Hayles, Director of International Shareholder Advocacy, will represent Trillium as a panelist. At Trillium, we believe that reproductive health care access is a fundamental right. We have strongly encouraged investee companies to ensure that employers provide access to healthcare for US-based employees, regardless of the state they reside in. Please join Lisa and our fellow investor panelists for this urgent and important conversation. Register by email at: [email protected].

Over 250 years ago, the Industrial Revolution ushered in a new era of productivity, radically improving our quality of life. Today, we are on the verge of yet another economic transformation: the AI Revolution. Similar to the industrial progress charted in the past, the promise of AI has the potential to greatly enhance the human experience, but its growing prevalence also brings forth significant challenges for our planet and society. Powering AI technology requires massive amounts of energy. This strain on our natural resources will exacerbate the current climate and biodiversity crises we face today. The International Energy Agency (IEA) estimates that total global electricity demand from data centers, crypto, and AI will reach 6% by 2026, a number equivalent to the size of Sweden. Outside of environmental impacts, AI presents social risks around justice, data integrity, and safety. At Trillium, we believe achieving community sustainability requires striking a balance between equity, ecology, and economy. While no company or investment will perfectly achieve our goals, this philosophy is integral to how we assess the opportunities and risks of AI, including monitoring: ● Electricity and water impacts ● Sustainable opportunities and infrastructure ● AI-related social impacts As AI capabilities evolve, we are working closely with our partners to better understand this powerful technology and its potential impacts. We will continue advocating for transparency and responsible AI governance through the lens of economic advancement, environmental sustainability, and social justice. Learn about our investment teams approach AI in the link below. 

Walter Bagehot, a Victorian-era banker and early editor of The Economist, is famously quoted as saying: “The purse strings tie us to your kind.” But what implications does this hold for the people who are holding them? Within the asset management industry, who controls capital matters. Despite decades of DEI progress, the percentage of the asset management workforce from underrepresented communities remains fuzzy at best. And the firms that control more than $100 trillion and exert great influence over global economics, often adhere to an antiquated viewpoint that they must choose between diversity and performance.  In an Op-Ed for the Boston Business Journal, Trillium Asset Management CEO, Matt Patsky, argued that it’s time for asset managers to ditch the status quo when it comes to embracing diversity. Matt points out that just 17% of assets were managed by gender-diverse teams, yet numerous studies including from Vanguard found that mixed-gender teams outperformed the benchmark by 47 basis points per year. Diversity is essential for fostering healthy discussions and generating multiple ideas, which ultimately leads to better business decisions, he added. Creating a team that includes women and minorities can open the doors to new circles, differentiate deal flows, and diversify portfolios. Omitting these groups from the decision-making ultimately leaves both money and talent on the table. To keep progress moving forward, Matt is calling on asset managers to promote transparency at the fund level. “If the purse ties us to our kind, then the onus is on us to give more of the power to diverse hands so we can create a future that is brighter for every kind.” Read Matt’s call for diversity in the asset management industry here: https://lnkd.in/eMG9NtVQ

Trillium Asset Management is now hiring a Portfolio Associate – Private Client, based in Boston, MA. Learn more about the position and apply here: https://lnkd.in/eCgQbsSd Please reach out with any questions: [email protected]

As millions of Americans celebrate #LaborDay weekend soaking up the last rays of the summer season, we invite everyone to remember the driving force that made the holiday possible: labor unions. Labor Day is a tribute to the power of worker solidarity and the unions that organized for numerous societal benefits that make our economy stronger and more just. During the 19th century, American workers began forming labor unions to demand safer working conditions, fair wages, anti-discrimination laws, and an eight-hour workday. Today, this critically important work continues. Unions are experiencing a resurgence amid soaring corporate profits and greater income equality. Companies such as Starbucks, Amazon, and Apple have made headlines for their responses to union activity and Trillium has been a leader pressing companies to live up to their commitments to labor rights Firms with a union presence can experience: ●     Greater worker productivity ●     Worker health and safety improvements ●     Increased worker satisfaction and decreased turnover ●     Decreased gender & racial pay gaps At Trillium, we believe sustainable economic growth cannot be built on abuses of power or the exploitation of workers, and profits should not supersede basic human rights. For a healthy society — and a healthy economy — there must be a balance of power and that is why we support the Protecting the Right to Organize (PRO) Act which supports the right of workers to freely and fairly form a union and bargain together for changes in the workplace. Promoting laborers' rights to organize and collectively bargain provides positive social and economic good, from which both workers and investors benefit. Read our whitepaper. https://bit.ly/4cGiPkg