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How did you vote on big banks’ shareholder ballots about financing fossil fuel projects?

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May 26, 2023

Image by Fas Khan

Proxy voting season is upon us, and it's time for shareholders to have their voices heard on important issues that affect the companies in which they invest. One such issue is fossil fuel financing, which has come under increased scrutiny in recent years due to the pressing need to address climate change. Bank of America, Citibank, and Wells Fargo are among the major financial institutions that have faced shareholder proposals on this topic.

As a responsible investor, it's important to understand how your investment fund managers are voting on your behalf. Are they supporting proposals that would encourage these banks to stop financing fossil fuel development projects, or are they voting against them? The answer to this question can have a significant impact on the future of our planet and our economy.

At Sphere, we believe in using our voices as shareholders to create positive change at the biggest companies in our economy. We voted for these big banks to stop financing fossil fuel development projects because we believe that this is the responsible thing to do, and because we believe it sets up the banks for long-term financial success. New fossil fuel projects are likely to return far less than their calculations admit, as climate change accelerates and global policies reduce demand for fossil fuels. By voting for these proposals, we can help to mitigate the devastating effects of climate change and set up our financial portfolios for success.

Why Fossil Fuel Financing is a Problem

Fossil fuel financing has become a major issue in recent years due to the impact of climate change. Burning fossil fuels releases greenhouse gasses into the atmosphere, which contribute to global warming and climate change. The effects of climate change are already being felt around the world, from rising sea levels and more frequent and intense natural disasters to food and water shortages and the displacement of millions of people.

Despite the urgent need to transition to a more sustainable, low-carbon economy, many banks continue to finance fossil fuel development projects. This not only perpetuates our dependence on fossil fuels but also puts billions of dollars of investments at risk as the world moves toward renewable energy sources.

By voting for proposals that would encourage these banks to stop financing fossil fuel development projects, we can help to shift the financial industry toward a more sustainable future. This will not only benefit our planet but also our economy and our communities.

The Importance of Proxy Voting

Proxy voting is a crucial part of the shareholder engagement process. As a shareholder, you have a say in how the company in which you invest operates. Proxy voting allows you to use your voice to influence the decisions that these companies make.

Unfortunately, many investors are unaware of their proxy voting rights or don't take advantage of them. This means that their investment fund managers may be voting in ways that don't align with their values or best interests.

At Sphere, we believe in empowering investors to take an active role in the companies in which they invest. By voting on behalf of our members, we can help to ensure that these companies are held accountable and that their actions align with our values and the financial interests of our investors.

How Sphere Voted

At Sphere, we voted for proposals that would encourage Bank of America, Citibank, and Wells Fargo to stop financing fossil fuel development projects. This is in line with our commitment to protecting shareholder value and our belief that responsible investing means taking action to address the urgent issue of climate change.

We believe that these banks have a responsibility to act in the best interests of their shareholders and the planet. By shifting their investments away from fossil fuels and toward renewable energy sources, they can help to mitigate the devastating effects of climate change and create a more sustainable future for all.

Join Sphere in Making a Difference

As an investor, you have the power to create positive change in the companies in which you invest. By using your voice to vote for proposals that align with your values and best interests, you can help to shape the future of our planet and our economy.

At Sphere, we're committed to empowering investors to make a difference.

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