NiSource Inc: 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. NiSource Inc. released a racial justice statement, but has limited disclosure related to diversity, equity and inclusion.
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.
NiSource is falling behind peers in its racial justice policies. NiSource scored a low 12 percent on a recent Racial Justice Scorecard. NiSource’s score ranks significantly below that of peer companies Duke Energy and Dominion Energy which scored 21% and 20%, respectively. NiSource’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 on racial justice and disclose related policies and quantifiable data raises the material risk of reduced brand value. NiSource can reduce this risk and begin playing an important role in ending systemic racism by promoting racial justice within our firm.
BE IT RESOLVED: Shareholders request that NiSource publish a report, at reasonable expense and excluding proprietary information, improving the Company’s reporting on the racial justice actions and targets, if any, it has put in place and the data reflecting its actions in promoting and improving racial justice outcomes at the Company.
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:
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 for people of color within the Company
Any plans to improve disclosures on the performance indicators that underlie the Company’s low scores compared to its peers on the above referenced Racial Justice scorecard
Resolution Details
Company: NiSource Inc
Lead Filers:
As You Sow
Year: 2022
Filing Date:
December 2021
Initiative(s): Racial Justice
Status: Resolution Withdrawn, Agreement Reached