Money Talks. This is what Thomas DiNapoli, Comptroller of the State of New York, is counting on when it comes to LGBTQ+ protection in the workplace.
DiNapoli’s New York State Common Retirement Fund, which manages $260 billion in assets, appears to be the first step of its kind and is pushing for more details about companies’ human capital management strategy work related to LGBTQ+ employees.
Proxy statements released this month total $45 billion Lennar Corp. and $13.5 billion International paper corresponding shareholder proposals from the pension fund are disclosed. The proposals are supported by a supporting statement He explains that changing demographics show that 20.8% of Generation Z identify as LGBTQ+, which is double the 10.5% of Millennials who identify this way. Aside from that, A third of people who identify as LGBTQ+ come forward have experienced harassment or discrimination in the past few years, and almost half (45.5%) say they have faced discrimination at some point in their lives.
Lennar and International Paper have recommended investors vote against both proposals.
Expand focus
The proposal is a new step in some investors’ push to obtain more comprehensive data on company diversity, and similar efforts have proven successful in achieving a more detailed representation of policies related to gender, race and ethnicity. Now investors are expanding their focus on LGBTQ+ employees. Investors have used more detailed reporting in recent years to hold boards and C-suite teams accountable for public diversity pledges in investments, senior leadership promotions and recruiting new employees.
Accordingly, companies should tell investors whether they have fair employee benefits, nondiscrimination policies and employee support groups, the New York fund wrote in the statement. In the proposals from both Lennar and International Paper, New York, they pointed to the companies’ own disclosures about workforce inclusion, respect for diverse backgrounds, and their general statements about fostering high-performing workplace cultures through their diversity efforts. New York holds about $15.8 million in International Paper shares and $33 million in Lennar shares. according to the fund’s asset list for 2023.
Both suggestions cited a 2019 report from the US Chamber of Commerce Foundation, Business success and growth through LGBT-inclusive culture. “Companies that adopt LGBT-inclusive practices tend to improve their financial health and perform better than companies that do not adopt them. Additionally, employees, regardless of their sexual orientation or gender identity, demonstrate greater job satisfaction in companies that employ these practices.”
Home builder headquartered in Miami Lennar’s board wrote that the company is “built on a culture of inclusivity” and brings together the best talent to drive the success of the “Lennar family”. The board said its Everyone’s Included initiative represents an evolution of that focus, including an advisory board that brings together diverse cross-representations. Its Code of Ethics and Business Conduct already explicitly prohibits discrimination and harassment based on “race color, religion, sex, sexual orientation, gender identity or expression, national origin, age, disability, veteran status, genetic information, or any other status protected by law.” “said the board. “The preparation of the proposed report is unnecessary and inefficient.”
International Paper board members said the annual report would discuss diversity and inclusion initiatives as well as long-term goals. “The key objectives of the company’s Vision 2030 include promoting employee well-being by providing safe, caring and….” included to create jobs and strengthen the resilience of its communities,” the board said (emphasis in original).
The company also has a global diversity and inclusion council and employee networking groups. “Requiring the company to produce an additional report that is limited to a portion of its overall diversity, equity and inclusion efforts would prove unduly burdensome to the company, waste management’s time and attention, and result in unreasonable costs.” while the whole thing adds little value given the company’s robust diversity, equity and inclusion initiatives, culture and disclosure practices, including around LGBTQ+ matters,” the IP executive said.
The proposals represent an evolution of the fund’s efforts last year, which included writing letters to 55 portfolio companies that signed the Human Rights Campaign and Freedom for All American Business statement on anti-LGBTQ+ legislation have. The campaign sparked new discussions about workplace policies. the state said in an annual report.