Trillium Asset Management

On the heels of the US presidential election results, investors anticipate that the next administration’s policies are expected to reshape key areas like the environment, social policy, and the real estate sector. How will investors navigate these shifts under the new administration? On November 19 at 11 a.m. EST, Trillium will join Equities.com in a special post-election virtual event: “Investment Strategies Under a Trump Administration.” Our CEO, Matt Patsky, will represent Trillium on an expert panel to explore how changes in areas such as corporate governance, workplace diversity, and social justice could impact different sectors and industries. The event will also feature peers from Morningstar, Gitterman Asset Management, Calvert, First Trust, Impax Asset Management, and others. We are honored to participate in this conversation at such a pivotal moment, as we strive to help investors prepare for potential policy changes — and embrace new opportunities — as this new investment climate takes shape. Registration link in comments.

For more than 40 years, throughout the Reagan Administration, the Biden Administration, and all administrations in between, Trillium has supported our investors in activating their capital to advance humankind toward a global sustainable economy, a just society, and a better world. While the direction of the political winds may change, requiring us to course correct, our commitment to being active and vocal shareholder advocates remains unwavering. We must acknowledge that the rhetoric and policy prescriptions asserted by Donald Trump and his allies disproportionately impact marginalized communities, including people of color and members of the LGBTQ+ community, and are rooted in systems of oppression that we are actively working to dismantle each day with the work we do at Trillium. We must center the voices and experiences of these communities in our work. We will continue to show that there is a better way forward, and support companies in fulfilling their environmental and social commitments to employees, customers, partners, communities, and shareholders. As we face the challenges ahead, we are immensely grateful for the steadfast support of our partners in this work.?

On this Election Day, we encourage all Americans to head to the polls and cast their vote. As our fellow citizens participate in this critical process, we are reminded that the great democratic experiment should never be taken lightly. We owe it to the generations of Americans who fought diligently to dismantle barriers to the ballot box and secure access to the right to vote, from the Women’s Suffrage Movement to the Voting Rights Act and the National Voter Registration Act.? Over the past decade, as equal voting rights have come under siege once again, we cannot forget how essential it is to stand up for democracy and vote. As stated in our post honoring Independence Day, Trillium Asset Management strongly believes a robust democracy is the cornerstone of a flourishing society where freedom, equality, and justice can prevail.

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 C?te 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.?