Investors have rescinded over a dozen reproductive-health related proposals so far this year
(Bloomberg) — Abortion was all set to be a hot topic at this year’s annual shareholder meetings. Activist investors had filed an estimated 30 proxy proposals asking companies to clarify reproductive health-related policies in light of the drastically changed legal landscape in the US.
But going into the yearly gatherings, investors have so far rescinded about half of those, according to a tally by Rhia Ventures, a corporate advisory firm focused on reproductive health.
Instead of having a public vote, many firms are choosing to settle the activists’ questions and concerns out of the spotlight, said Shelley Alpern, director of corporate engagement at Rhia Ventures. “They’re trying to minimize any controversy and do things quietly,” she said.
Trillium Asset Management, for example, had a planned to bring a proposal to TJX Cos. — which owns discount retailers TJ Maxx and Marshalls — asking it to release a report on the risks to the company’s 329,000 workers who live in states with extreme abortion restrictions. At last year’s meeting, which took place before the US Supreme Court overturned longstanding precedent granting constitutional protections for abortion, roughly a third of investors supported a similar measure.
But this year, before it could go to a vote, the company met with activists and convinced them to withdraw it.
Jonas Kron, chief advocacy officer at Trillium, said it pulled the proposal after the retailer shared that in 2022 it had added an employee benefit to pay for travel expenses to get an abortion and also agreed to speak with its insurance provider about better contraceptive coverage.
TJX confirmed in a statement that the company had engaged with the investors. “We are proud of the benefits that we offer to eligible Associates related to reproductive health, which includes support across various reproductive services and care,” Andrew Mastrangelo, a spokesperson for TJX, wrote in an emailed statement.
AT&T Inc., Lowe’s Cos Inc., and Ulta Beauty Inc. also all had abortion-related proposals withdrawn by investors before their annual meetings.
Ulta’s leadership engaged in discussions with shareholders outlining its reproductive-health benefits, the company confirmed in a statement. Investor As You Sow said the group withdrew a proposal asking AT&T to better explain political contributions to abortion opponents after the telecommunications giant agreed to be more transparent about its spending in the future. The company had no comment. Alpern said a proposal at Lowe’s was withdrawn after a mutual agreement related to the company’s family planning benefits. The retailer did not respond to a request for comment.
Since the US Supreme Court overturned Roe v. Wade last June, investors have pushed companies to clarify their policies and stances on abortion, as its legality and availability across the country continues to change. The number of investor proposals on reproductive-health related topics doubled from last year.
Companies have mostly tried to keep quiet on the issue. Immediately following the Supreme Court decision, some said they would offer travel benefits for workers who needed to leave their home states for abortion. Since then, however, companies haven’t said much — even in light of major changes, including this week’s legal back-and-forth of the abortion pill.
“Companies, with few exceptions, have been largely quiet,” said Rhia’s Alpern. “For the most part, they are trying not to poke the beast.”
Investors still have questions. Proposals at Coca-Cola Co. and PepsiCo Inc. want to know how the soft-drink giants are mitigating risks for workers who can’t legally get abortions where they live. American Express Co. has a proxy proposal on the docket asking about their data-collection policies and if they plan on sharing anything with law enforcement to prosecute people seeking abortions. At Walmart Inc., Home Depot Inc., Pfizer Inc. and Coca-Cola investors want companies to explain why they’re donating to political candidates who oppose abortion.
Coca-Cola declined to comment on the proposal and none of the other companies responded to requests for comment. In proxy statements, Coca-Cola, Home Depot and Pfizer said that their political spending is already transparent and that their approach is bipartisan. PepsiCo in a proxy filing said it offers comprehensive medical care, including reproductive-health care, as did Coca-Cola. American Express said in its proxy filing that it doesn’t collect enough details on transactions to know what products or services customers are specifically purchasing. It also said it must comply with proper law-enforcement requests.
Shareholder proposals are non-binding, and even when a majority of investors vote in favor, companies can still disregard the outcome. BlackRock Inc. has, however, found that once a vote exceeds 30% support, firms are much more likely to engage and settle the issue.
As the abortion debate and laws continue to evolve, the issue will continue to present a risk to companies whether they acknowledge it or not, Rhia’s Alpern said. “We’ll find out this spring to what extent institutional investors and the proxy advisory firms are asleep at the wheel,” she said.
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