SEC Rejects Deere’s Attempt to Block Shareholder Resolution Addressing Company’s Rollback of Diversity Policies
Amalgamated Bank seeks report on the effectiveness of Deere’s efforts to create a merit-based workplace focused on financial metrics and shareholder value
FOR IMMEDIATE RELEASE
MEDIA CONTACT: Ryon Harms, [email protected], (310) 579-2188
BERKELEY, CA—January 8, 2025—The U.S. Securities and Exchange Commission (SEC) ruled against Deere & Co’s “no-action” request to exclude a shareholder proposal filed by As You Sow on behalf of shareholder Amalgamated Bank, asking the company to address the effectiveness of the Company’s policies in creating a meritocratic workplace, especially in the face of Deere’s recent diversity policy rollbacks.
“Deere & Co created significant risk for shareholders when it walked back diversity efforts in response to a social media influencer,” said Andrew Behar, CEO, As You Sow. “Well-implemented diversity policies and practices have been shown to increase company’s financial outperformance on at least eight key measures.”
Deere challenged the resolution as a “Duplicate Proposal,” arguing that the resolution from As You Sow “substantially duplicates another proposal” filed by the NLPC, a right-wing political think tank attempting to end corporate diversity initiatives. The SEC did not concur with Deere & Co’s position that the conservative NLPC proposal was duplicative.
Shareholders have shown they understand the difference between resolutions focused on efforts to increase financial outperformance and those filed to make a political point. Anti-ESG resolutions, of which anti-diversity proposals predominate, received an average of only 1.9% of total shareholder votes in 2024, while ESG resolutions consistently earn more than 30% and at times have earned majority votes. Only four out of 81 anti-ESG resolutions have met the 5% resubmission threshold.
“However well-funded anti-ESG think tanks may be,” added Behar, “shareholders have not been successful in promoting resolutions meant to make a political point at the expense of financial performance.”
Unlike Deere & Co, companies like Costco are actively fighting the political pressure to roll back diversity programs. In a recent article on CNN, Costco noted that: “[a]mong other things, a diverse group of employees helps bring originality and creativity to our merchandise offerings, promoting the ‘treasure hunt’ that our customers value. . . . We believe (and member feedback shows) that many of our members like to see themselves reflected in the people in our warehouses with whom they interact.”
About As You Sow
As You Sow is the nation’s leading shareholder representative, with a 30-year track record promoting environmental and social corporate responsibility. Its focus areas include climate change, ocean plastics, toxins in the food system, the Rights of Nature, racial justice, and workplace diversity. Click here to view As You Sow’s shareholder resolution tracker.