Page 22 - Riverwater 2020 Sustainability Report
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 2020 SUSTAINABILITY REPORT
APPENDIX D: COLLABORATION EFFORTS IN DETAIL
APPENDIX B
COLLABORATIONS FOCUSING ON PUBLIC POLICY
MARCH 2020: SECURITIES AND EXCHANGE COMMISSION
Riverwater wrote a letter to the SEC asking that it reconsider its proposed rule changes (S7-23-19 Procedural Requirements and Resubmission Thresholds under Exchange Act Rule 14a-8) that would raise the threshold for ownership (shares and time period) required to file a shareholder resolution and to refile a resolution in subsequent years, believing that small shareholders bring important matters for consideration that can mitigate potential risk. Despite significant shareholder opposition to Rule 14a-8, it was passed. As of March 2021, Congress is considering reversing this legislation.
JULY 2020: DEPARTMENT OF LABOR
Riverwater wrote a letter encouraging the Department of Labor to reconsider its proposed Financial Factors in Selecting Plan Investments Proposed Regulation (RIN 1210-AB95) that would impose significant analytical and documentation burdens on fiduciaries of benefit plans governed by the Employee Retirement Income Security Act (“ERISA”) wishing to select (or allow individual account holders to select) investments that use ESG factors in investment analysis or that provide ESG benefits.*
SEPTEMBER 2020: SECURITIES AND EXCHANGE COMMISSION
Riverwater wrote a letter to the SEC expressing our strong opposition to the DOL’s proposed rule, “Fiduciary Duties Regarding Proxy Voting and Shareholder Rights” (RIN 1210-AB91) (the “Proposal”). The Proposed Rule would impose significant analytical and documentation burdens on fiduciaries of benefit plans governed by the Employee Retirement Income Security Act (“ERISA”) as they exercise their proxy voting right, one of the most visible and verifiable ways in which investors can practice responsible ownership. A key element of this right is to allow shareholders the opportunity to raise issues before a crisis that erodes shareholder value arises.*
*UPDATE: March 2021 Announcement: “Until it publishes further guidance, the Department of Labor will not enforce either of these two final rules or otherwise pursue enforcement actions against any plan fiduciary based on a failure to comply with those final rules with respect to an investment, including a Qualified Default Investment Alternative, or investment course of action or with respect to an exercise of shareholder rights. This enforcement statement does not preclude the Department from enforcing any statutory requirement under ERISA, including the statutory duties of prudence and loyalty in section 404 of ERISA.”
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