Shareholders Miss Second Chance to Vote on Right to Repair at Deere
SEC blocks Green Century° shareholder proposal on Right to Repair at Deere & Company*
Contact Information:
Douglass Guernsey, Shareholder Advocate, dguernsey@greencentury.com, 617-747-4447
Pam Podger, Communications Director, ppodger@greencentury.com, 802-299-9495
(Boston, MA) Shareholders will not get to vote on Deere & Company’s opposition to Right to Repair at the company’s Annual General Meeting this year after the SEC granted Deere’s no action request.
This is the second time shareholders of the tractor company have been denied a vote on a Green Century proposal because of an SEC no-action request.
“It is disappointing that Deere doesn’t want to allow shareholders to vote on this issue,” said Leslie Samuelrich, President of Green Century Funds. “Allowing farmers the right to repair their own equipment is common sense, and Deere’s opposition presents reputational risks to the brand. In the end, this may hurt investors.”
Green Century submitted a shareholder proposal asking Deere to issue a public report on the benefits and drawbacks of opposing Right to Repair regulation and the financial and reputational risk associated with opposition in Q4 of 2023.
Deere’s opposition was based on the argument that Green Century’s shareholder proposal would directly and negatively impact the Company’s ongoing “litigation strategy”.
Deere is currently the subject of a class action lawsuit from farmers who allege that Deere and its authorized dealerships have “attempted monopolization, exclusionary conduct and restraint in the repair service market for John Deere brand agricultural equipment.”
Regulatory Pressure and Broad Bipartisan Support Continues to Grow for Right to Repair
Bipartisan Right to Repair legislation, like that passed in Colorado which allows farmers and wheelchair users access to fix their own equipment, has been gaining momentum in the United States and in Europe.
Multiple bills have been introduced in Congress that would give consumers broader access to repair.
President Biden has indicated supporting consumer’s right to repair, stating that too often “if you own a product, from a smartphone to a tractor, you don’t have the freedom to choose how or where the repair that item you purchased.”
In addition to reducing costs and downtime, access to repair helps spur competition.
Deere has opposed allowing independent repair shops and farmers to fix equipment sold by Deere, citing emissions control concerns. The EPA has rejected these concerns, and advocates point out that if farmers are limited in their repair options, they face increased costs and may miss critical harvesting deadlines.
Last November, a U.S. District Judge in Illinois stated that Deere must face claims that it had conspired to restrict repairs.
“Green Century will continue to advocate for the right to repair,” said Douglass Guernsey, a shareholder advocate working on the issue. “Access to repair not only benefits consumers and the economy, but it is a critical environmental issue. Extending the lifespan of our equipment is one of the largest environmental contributions someone can make as an individual.”
About Green Century Funds
°Green Century Capital Management, Inc. (Green Century) is the investment advisor to the Green Century Funds (The Funds). The Green Century Funds are one of the first families of fossil fuel-free, environmentally responsible mutual funds. Green Century hosts an award-winning and in-house shareholder advocacy program and is the only mutual fund company in the U.S. wholly owned by environmental and public health nonprofit organizations.
*As of September 30, 2023, Deere & Company comprised 0.58%, 0.55%, and 0.00% of Green Century Balanced Fund, the Green Century Equity Fund, and the Green Century International Index Fund,. As of the same date, other securities mentioned were not held in the portfolios of any of the Green Century Funds. References to specific securities, which will change due to ongoing management of the Funds, should not be construed as a recommendation by the Funds, their administrator, or their distributor.
You should carefully consider the Fund’s investment objectives, risks, charges, and expenses before investing. To obtain a Prospectus that contains this and other information about the Funds please visit www.greencentury.com, email info@greencentury.com, or call 1-800-934-7336. Please read the Prospectus carefully before investing.
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The Green Century Funds are distributed by UMB Distribution Services, LLC. 235 W Galena Street, Milwaukee, WI 53212. 1/2024
