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Newsmakers

New York Pensions Settle Environmental Activism Lawsuit Against Aerospace Company

Multi-billion-dollar company argues greenhouse gas proposals go against its ‘ordinary business.’

By Elijah Owens

New York City’s five public pension funds recently settled a lawsuit against TransDigm Group, an aerospace company, to win the right to include a shareholder proposal concerning the company’s environmental impact on their upcoming proxy vote.

The pension funds issued a shareholder proposal to TransDigm on September 19 to adopt a policy with “time-bound, quantitative, company-wide goals for managing greenhouse gas (GHG) emissions.” The funds argued that climate change is a critical issue that the multi-billion dollar company should take into account, noting that the World Bank stated that a 4 degrees Celsius increase in average global temperatures could have devastating effects.

Together, the five retirement systems own 59,729 shares in TransDigm with a market value aggregating to over $22 million.

TransDigm attempted to “illegitimately block” the shareholder proposal, despite climate change awareness evolving to “a practice that is an industry norm,” according to a statement from the funds.

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The proposal did not specify emissions limits, leaving that to be determined by the company if the policy were adopted. The document noted that many of TransDigm’s peers in the aerospace industry, such as Boeing, Lockheed Martin, and Northrop Grumman, have all adopted GHG emissions standards.

The pensions filed the lawsuit in December on the issue. As a result of the settlement, the proposal will be added to TransDigm’s proxy ballot so that all investors can voice their opinion on whether the company should examine and address its role in climate change.

“TransDigm unlawfully blocked the funds from weighing on one of the most important environmental issues facing our society today,” corporation counsel Zachary W. Carter said in a statement. The company initially argued that the fund’s proposal influenced the “ordinary business” of the company.

The lawsuit marks the first environmentally focused shareholder proposal conducted by the funds. The most recent shareholder proposal litigation was conducted in 2008 against Apache Corp., regarding a proposal to prohibit discrimination based on sexual orientation and gender identity.

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Home > News > Newsmakers > Citigroup Launches Green Bonds
Newsmakers

Citigroup Launches Green Bonds

Bank looks to keep 2015 promises on renewable energy, water quality, and other Paris Agreement goals.

By Chris Butera

Banking giant Citigroup ($1.82 trillion) has issued its first green bond, continuing its sustainability goals.

The firm has put out €1 billion ($1,13 billion) for three-year fixed rate notes, which will fund renewable energy, water quality and conservations, green building projects, and other environmentally friendly missions. The bonds are financed as part of Citi’s $100 billion environmental finance goal.

The green initiative was launched in 2015 to finance and facilitate $100 billion within 10 years to speed up the global transition to a low-carbon economy, keeping in line with the Paris Agreement.

Citi also wants to have all of its global energy needs sourced by renewable power by 2020.

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Both the environmental finance goal and the 2020 plans are part of Citi’s push to meet the United Nations’ Sustainable Development Goals. The 17 development goals are part of the organization’s agenda to achieve a sustainable future by 2030. The bank is dedicating more time to seven of those goals: partnerships; gender equality; climate action; sustainable cities and communities; industry, innovation, and infrastructure; decent work and economic growth; and affordable and clean energy.

“Since we co-founded the Green Bond Principles in 2014, Citi has played a leading role in the development of the green bond market, and we look forward to maintaining our commitment as this market continues to grow,” said Michael Verdeschi, Citi’s treasurer.

The green bond principles were devised by a consortium of investment banks which included Citi, JPMorgan Chase, Goldman Sachs, Morgan Stanley, Deutsche Bank, and others. The principles are the blueprint for each bank’s launch of a green bond.

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