Eversource Energy: Disclosure on Plans and Policies Aligned with Achieving Racial Equality as Informed by As You Sow Scorecard
WHEREAS: Following George Floyd’s murder by police officers on May 25, 2020, a majority of Russell 1000 corporations made public statements expressing their plans to address racial justice, thereby taking the first step to becoming antiracist organizations. Antiracism is the practice of identifying, challenging, and changing the values, structures, and behaviors perpetuating systemic racism. While Eversource Energy released a statement, shareholders have not seen material progress from the Company on racial equity issues. The Company may risk removal from Impact Shares’ NACP ETF, due to its low score on a recent Racial Justice Scorecard.
Eversource’s -3% score is below peers Dominion Energy and FirstEnergy which scored 20% and 17%, respectively. Eversource’s low score is due to a lack of publicly accessible diversity, equity, and inclusion targets, and lack of disclosed data concerning recruitment, retention, and promotion rates of people of color within the Company. Given heightened awareness around racism, failing to act and disclose policies and quantifiable data raises the material risk of revenue loss and reduced brand value.
A McKinsey study cites material corporate benefits associated with corporate policies promoting racial justice:
Companies with the strongest racial and ethnic diversity are 35% more likely to outperform their industry medians for earnings before interest and tax
Companies with the most ethnically/ culturally diverse boards are 43% more likely to earn higher profits
For every 10% increase in racial and ethnic diversity among senior executives, EBIT rises 0.8.
Yet, inequities in the workplace continue:
People of Color comprise 33% of entry level positions, but 13% of the C-suite
Among the Russell 3000, in 2019 Black individuals accounted for 4.1% of board members versus 13.4% of the U.S. population.
Eversource can play a critical role in ending systemic racism by promoting racial justice.
BE IT RESOLVED: Shareholders request that Eversource publish a report, at reasonable expense and excluding proprietary information, disclosing the Company's plan to promote racial justice.
SUPPORTING STATEMENT: Investors seek quantitative, comparable data to understand if and how the Company is promoting a commitment to Racial Justice. Proponents suggest the report include:
Potential policies the company could adopt to promote Racial Justice in its corporate workplaces and operations;
Detailed quantitative information on diversity, equity, and inclusion, including recruitment, retention, and promotion rates and policies
Any plans to address key performance indicators on the above referenced Racial Justice scorecard
Resolution Details
Company: Eversource Energy
Lead Filers:
As You Sow
Year: 2022
Filing Date:
November 2021
Initiative(s): Racial Justice
Status: Resolution Withdrawn, Agreement Reached