How Humans Can Help the Oceans Better Than Mermaids Can
Values-aligned investing, shareholder activism, and their role in creating a healthier world.
In recent years, my passion for the underwater world has blossomed through the captivating experience of snorkeling in the Caribbean Sea. As I float weightlessly amidst the azure waters, mesmerized by the kaleidoscopic diversity of coral, fish, turtles, rays and crustaceans, a whimsical thought often crosses my mind – if I could, I would gladly embrace the life of a mermaid. However, this fanciful notion is swiftly tempered by the harsh reality that the coral reefs, the very essence of this underwater paradise, are visibly suffering and dying at an alarming rate.
It is a sobering realization that fills me with heartbreak, for these vibrant ecosystems are not only a source of immense beauty but also vital to the health of our oceans and the planet as a whole. In the face of this environmental crisis, I find myself reflecting on the passionate goals of Ariel, the beloved Little Mermaid from the classic Disney tale. Her aspirations to marry Prince Eric, a human of means and influence, takes on a profound significance, as she could potentially leverage her position to drive positive change and preserve the wonders of the deep – something that a mermaid alone cannot achieve.
One powerful tool at Ariel's disposal as a human would be shareholder activism targeted at promoting ocean conservation and clean-up efforts. Organizations like As You Sow have demonstrated the impact of this approach, using their influence as shareholders to push corporations to adopt more sustainable practices that protect marine ecosystems[1].
A notable example is As You Sow's campaign against the consumer goods giant Procter & Gamble (P&G). In 2020, As You Sow filed a shareholder resolution calling on P&G to report on its efforts to reduce plastic pollution, including its contribution to ocean plastic waste. The resolution highlighted the significant environmental impact of plastic pollution, particularly on marine ecosystems. Despite P&G's initial opposition, the resolution received strong support from shareholders, with over 60% voting in favor. As a result, P&G agreed to enhance its disclosures and set ambitious goals to reduce its plastic footprint, including a commitment to make all its packaging recyclable or reusable by 2030[2].
Another example of shareholder activism targeting ocean health is the campaign led by the non-profit Green Century Funds to protect the North Atlantic right whale. With fewer than 360 individuals remaining, the species is on the brink of extinction, primarily due to threats from vessel strikes and fishing gear entanglements. In 2021, Green Century Funds filed a shareholder resolution with Costco, urging the company to adopt measures to mitigate the risk of ship strikes on these endangered whales. The resolution received significant support from shareholders, leading Costco to commit to evaluating and adopting measures to protect the whales[3].
It is worth noting that Environmental, Social, and Governance (ESG) investing, also known as Impact investing, has gained significant traction in recent years, with investors increasingly recognizing the importance of considering non-financial factors in their investment decisions. Non-financial factors, such as a company’s policies around pollution, often have future financial repercussions. Investors make decisions based on predictions about future trends, and shareholder activism allows us to architect the future world we would like to live in. In a recent testimony before the U.S. House of Representatives, Andy Behar, CEO of As You Sow, highlighted the benefits of ESG portfolios, stating that they can outperform traditional portfolios while also promoting positive social and environmental outcomes[4]. This further reinforces the notion that sustainable investing and shareholder activism can be powerful tools for driving positive change while also generating financial returns.
As we confront the harsh realities of climate change and the deterioration of our oceans, Ariel's aspirations to marry Prince Eric take on a profound significance. By strategically investing in companies that prioritize the health of marine ecosystems and by leveraging her shareholder rights, she could drive meaningful change and hold corporations accountable for their ecological impact.
If you are inspired to make a positive impact on the oceans through sustainable investing and shareholder activism, we invite you to explore Centered Wealth's approach to portfolio management that specializes in values-aligned investing strategies. By aligning your investments with your values, you can contribute to the preservation of our planet's precious ecosystems while also generating financial returns. Together, we can create a ripple effect of positive change, ensuring that future generations can continue to enjoy the wonders of the deep.
[1] https://www.asyousow.org/our-work/environmental-health/oceans
[2] https://www.asyousow.org/our-work/circular-economy/plastic-pollution
[3] https://www.greencentury.com/shareholder-advocate/
[4] https://asyousow.org/speeches/andy-behar-testimony-on-esg-issues-2022https://www.fisheries.noaa.gov/endangered-species-conservation/north-atlantic-right-whale-recovery-under-inflation-reduction-act
https://environmentamerica.org/center/articles/save-the-whales/