For this proxy season, shareholders filed about 117 sustainability resolutions thus far.
This proxy season shareholders have one thing on their minds: sustainability.
As the reputational and financial risks that businesses face continue to expand, shareholders have decided to sharpen their focus on improved sustainability initiatives.
A new report, Six growing tends in corporate sustainability, produced by Ernst &Young (EY) and research company GreenBiz Group, says the chief financial officer’s role in sustainability management is on the rise and there has been an uptick in shareholder concerns about sustainability-related issues. About 66 percent of corporate sustainability leaders have seen an increase in inquiries from shareholders about sustainability efforts over the past 12 months. This is a clear indication that shareholders have a better understanding of the material impact of sustainability on corporate culture and business performance. 
For this proxy season, shareholders filed about 117 sustainability resolutions thus far, according to another study, Proxy Preview 2012 published by the advocacy organizations: As You Sow, Sustainable Investments Institute (Si2), and Proxy Impact. Many of those resolutions touched on natural resource management, such as coal and fracking.
‘These resolutions are too important to ignore,’ says Heidi Welsh, Si2's executive director and the report's co-author. ‘Many corporations recognize that shareholder proposals can be red flags for hard issues they have to tackle, sooner or later. Engagement with shareholder proponents can help them better manage risks to their brands and business, which helps everybody.’
As CFOs are now rolling up their sleeves and getting personally involved in the measurement and reporting of a company’s CSR activities, the EY report also points out that 76 percent of survey respondents anticipate that natural resource shortages will affect their core business objectives over the next three to five years. Due to this, more than half of those polled say they have a water footprint reduction goal.
‘Sustainability continues to grow as a strategy for many of the world's largest companies,’ says Joel Makower, chairman and executive editor of GreenBiz Group. ‘But as these findings show, companies still have a long way to go in order to harness its full value, such as improved efficiencies, reduced risk, and being seen as an employer of choice.’
