Praxis is proud to contribute to meaningful progress on a variety of important issues through its corporate engagement program. Corporate engagement – also known as shareholder advocacy – means using the rights and privileges conferred by stock ownership to promote corporate change. It can take many forms, including letter writing, dialogue with company management, shareholder resolutions, and voting shares of stock.
Praxis partners with other like-minded investors to increase the breadth and depth of our advocacy reach. Together, we and our partners pursue trusting and mutually beneficial relationships with the companies we own shares in, while challenging them on issues where we believe they can do better.
Throughout 2022, we helped make incremental gains in most of our engagements, and the following successes are particularly notable:
- American Electric Power and Southern Company produced comprehensive, peer-leading Just Transition (JT) reports. The reports included an analysis of the social impact of their electric decarbonization strategy, the importance of energy justice, clear JT governance structure, including metrics for JT programs, and insight on engagements with employees in relation to retaining and redeploying their workforces.
- Duke Energy announced a goal of generating less than 5% of its electricity from coal by 2030 and a complete coal phaseout by 2035.
- NiSource’s electric utility subsidiary, NIPSCO, set a goal of 60% or more electricity generation from renewable sources by 2030.
- Praxis co-filed a shareholder proposal asking Home Depot to adopt and publicly disclose a policy that all employees accrue paid sick leave as a core benefit. Praxis withdrew the proposal in response to Home Depot’s commitment to increased transparency as well as policy considerations.
- Praxis co-filed a proposal at Amazon, calling for a racial equity audit to investigate reports of disparate racial impacts that may result from its employment practices. The proposal was withdrawn after Amazon agreed to conduct an independent audit led by former U.S. Attorney General Loretta Lynch.
While much work remains, Praxis is encouraged by the many positive outcomes achieved through corporate engagement in the past year and will continue to strive for impact.