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Mission
The Sustainable Investment Institute (Si2), a non-profit
organization based in Washington, D.C., conducts impartial research and
publishes reports on organized efforts to influence corporate behavior
on social and environmental issues.
Si2 closely follows shareholder resolutions proposed by investor activists,
analyzing changing reform campaigns and identifying key points of contention
in reports that enable institutional investors to make informed, independent
decisions about their votes and views on these proposals. In addition
to educational proxy research materials for members, SI2 publishes reports
for the interested public on related emerging issues.
Si2 seeks to elevate the debate on investor responsibility and expand
the market for robust, impartial analysis of corporate sustainability
concerns. Much of the extant research on socially responsible investing
and corporate performance is gathered and maintained in proprietary databases
by financial service firms, which limits the ability of academic researchers
and the public at large to independently and accurately assess corporate
behavior. By conducting original research on these issues and making reports
more readily available, Si2 will enrich civil society’s knowledge
and understanding. It will both inform investors and spur dialogue between
key stakeholders and corporations, helping to identify solutions that
benefit the world.
Founding members believe that a public interest research institute best
realizes the organization’s intended mission; establishment as an
independent institute differentiates Si2 from other companies, activists
and research firms in the field. We avoid conflicts of interest by not
taking a position on the issues we cover.
 
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NEW CORPORATE POLITICAL SPENDING REPORT RELEASED: On November 10, Si2 and the IRRC Institute released ”Corporate Governance of Political Expenditures: 2011 Benchmark Report on S&P 500 Companies.” The report finds that corporate accountability and disclosure of political expenditures is on the upswing, with the boards of 31 percent of S&P 500 companies now explicitly overseeing such spending, compared to 23 percent in 2010. However, this increased oversight and transparency does not necessarily translate into less spending, as companies with board oversight of political expenditures spent about 30 percent more in 2010 than those without such explicit policies.
The full report is available on Si2’s blog here .
OTHER RESEARCH PROJECTS: Si2 also is working on two other special reports:
With support from the IRRC Institute, in early 2012 we will publish an assessment of key investor risks and opportunities posed by hydraulic fracturing, including comparative company profiles.
We also plan to release soon a report that examines human rights and environmental investor risks faced by oil and gas companies operating in the Niger Delta.
Si2’s Mid-Year Review of proxy season became available to members in August. The report notes that the 2011 proxy season marks a tipping point for social & environmental shareholder proposals:
The overall average support level cracked 20 percent, an historic first;
Five (nearly six) proposals received majority support from investors; and ;
Twenty resolutions garnered more than 40 percent support, another new record.
The season was noteworthy for a big leap in proposals on corporate political spending—which edged out labor and human rights to become the second-most popular issue, behind the environment. Continuing previous trends, even more investors told companies they want corporate policies that protect LGBT rights and more disclosure on sustainability, the environment and corporate political spending. A diverse array of proponents also expressed new concerns about banks’ foreclosure risk disclosures and saw the proposals supported with substantial votes. The total number of proposals filed and voted on is about the same as in 2010, as is the proportion excluded from proxy statements after company challenges at the Securities and Exchange Commission (SEC).
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JANUARY 5: The first two votes of the 2012 proxy season are approaching. On Jan. 24, Monsanto investors will consider a new resolution from Harrington Investments that asks for a more detailed report on how the company is managing risks related to its genetically modified seeds. On Feb. 7, Emerson Electric shareholders will vote on a resolution asking for a sustainability report; the proposal received nearly 34 percent support last year.
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