At a time when we tend to look at our screens more than into other people’s eyes, shareholder advocacy is a reminder of the power of building relationships face to face. I was recently reminded of this power when I attended the annual general meeting of a top sportswear brand, Under Armour.
As investors, Green Century’s shareholder advocates can secure meetings with senior management at a wide variety of companies. Much like accepting a friend request on social media may lead to a direct message, holding shares in a company opens the door to speaking directly with its key decision-makers. Yet, the advent of technology combined with the COVID-19 pandemic moved much of this communication online.
Virtual meetings have their perks. Remote work has helped me hold more meetings that result in productive dialogues and new environmental victories. Green Century shareholder advocates led 102 company meetings in 2024, a number that would not be possible without the ease of virtual meetings.
Nevertheless, convenience can come at a cost. Research published on the Harvard Law School Forum on Corporate Governance found that online meetings shorten the average discussion time and enable companies to dodge shareholder questions. I am convinced that certain conversations are best had in the same room. So, when I saw Under Armour’s meeting was at its new global headquarters in Baltimore, I knew I had to take the opportunity to champion environmental action head on.
Getting in the Room
Annual general meetings play a critical role in holding companies accountable to their shareholders. At these meetings, public companies present financial results, elect leadership, and make critical business decisions. All interested investors can attend.
Participating in an annual general meeting, however, requires buying in on a more serious level. An investor must demonstrate that they have owned a certain number of shares for a particular amount of time to present a shareholder proposal, which is then voted upon by fellow investors. The shareholder proposal is a key tool for Green Century’s advocacy, and it has resulted in numerous positive policy changes and environmental wins.
Green Century asks Under Armour to step up to the plate
I was presenting a proposal calling upon Under Armour to increase details of its plans to cut emissions. Competitors such as Nike, Adidas, and Puma have led the way by setting climate emissions reduction targets and publishing plans to achieve them. Without specifics on Under Armour’s climate game plan, the company was not being a team player in the effort to address the consequences of a warming planet.
Green Century’s demand for Under Armour to do better became even more critical following the company’s recent decision to renege on its 2021 pledge to “tackle climate change”. The annual meeting was my chance to bring environmental concerns in front of investors and up to the CEO while this decision was still relatively fresh.
My moment at the mic
I presented Green Century’s proposal in the allotted two minutes. The real power of presenting comes with the conversations it sparks afterwards. When we reached the time for questions, I looked CEO Kevin Plank in the eye and asked what Under Armour’s plan was to get back on track with climate action.
The response from Mr. Plank and his fellow board members was genuine.
After praising the beauty of the new net-zero emissions corporate headquarters, they moved into the substance of their sustainability commitments. Executives made comments on how Under Armour’s new goal to drive business performance with innovation is intertwined with the retailoring of its emissions reduction strategy.
While the goal of the new headquarters was to have visitors “immediately grasp what Under Armour believes in” from the outside, it is critical that these beliefs translate to action inside the building.
Following up and following through
In the post meeting shuffle, several directors thanked me for sharing Green Century’s perspective. The head of the company’s sustainability committee praised the attention our proposal brought to the importance of emissions reductions. Smiles and handshakes represented the outcome of thoughtful conversations on how to align the interests of the company, shareholders, and the environment.
Going forward, I plan to work alongside Under Armour to ensure that they are effectively cutting their contribution to climate change. Only then will the company truly be keeping athletes safe from extreme weather its HeatGear® is built to protect them from. Time is of the essence, and each day without a strategy to decrease climate emissions heightens temperatures and the need for even more serious measures.
Green Century views our proposals not as the conclusion of an engagement but a starting point for ongoing dialogue and accountability. Attending annual general meetings is one example of the relationship building shareholder advocates like me pursue with all the companies we meet with to advance crucial environmental progress.
— Giovanna Eichner, shareholder advocate at Green Century