Costco Shareholders Reject Reproductive Rights Proposal
Proposal sought disclosure on risks of restricting reproductive rights
A series of companies have faced similar proposals
By Clara Hudson, January 19, 2023
Costco Wholesale Corp. shareholders voted against a proposal on Thursday seeking more information on the risks reproductive rights restrictions will have on the company’s business.
The company didn’t give a precise count during its annual meeting, but said the proposal secured less than 15% of shareholder votes. The proposal, submitted by Arjuna Capital, sought a public report within six months detailing the potential risks and costs to the company prompted by state policies restricting reproductive rights. The company said results will be updated once additional votes that were made at the company’s annual meeting are counted.
Tony James, Costco’s board chair, told shareholders that “imposing special reporting obligations on the company is not necessary and would be a significant added expense.” James also said he recognizes that “the topic of reproductive rights can be divisive.”
There have been a flurry of shareholder actions pressing blue-chip companies to respond to the Supreme Court’s Dobbs v. Jackson Women’s Health Organization ruling in June, which overturned Roe v Wade. Lowe’s Companies Inc. and Walmart faced such proposals, which secured 32.2% and 12.9% of shareholder votes, respectively, last summer.
At the meeting, Julia Cedarholm, a senior associate at Arjuna Capital, noted that new risks have arisen because “the legal environment post-Dobbs is profoundly different.”
Cedarholm said Costco should “proactively work to protect its female workforce” in states where abortion restrictions have been imposed. She highlighted that studies show women who cannot access abortion are more likely to leave the workforce.
“Employers, as well as employees, bear the cost of restricted access to reproductive health care,” the proposal said.
“Today’s vote shines a light on a new risk to investors—the risk that reproductive health restrictions will negatively impact companies’ workforces,” said Natasha Lamb, managing partner at Arjuna Capital.
Costco said in its proxy statement: “We will continue to monitor developments so that we remain responsive to their concerns.” The company decline to comment on the vote.
Click here to read the article.