STATEMENT: At Builders FirstSource* Annual Meeting, MIDANA CAPITAL Wins Majority Vote on Climate Change Proposal
Media Contacts: Andrea Ranger, Shareholder Advocate, aranger@midanacapital.com, 781-349-2813; Mark Morgenstein, Media Relations Director, mmorgenstein@midanacapital.com, 678-427-1671
Boston, June 15, 2022 – At the Builders FirstSource annual meeting of shareholders on Tuesday, MIDANA CAPITAL° received a majority vote of 87.6% on its shareholder proposal, which asks the company to adopt science-based greenhouse gas emissions reduction targets. The proposal additionally asks the company to set goals for sourcing more renewable energy, increasing energy efficiency in its operations, and procuring zero emission vehicles.
In May, Builders FirstSource’s board took the unusual step of withholding a recommendation on whether shareholders should vote for or against the proposal. It reasoned that the company already had plans to “substantially comply with the goals of the proposal” but noted that proposal’s disclosures and timelines would be “overly burdensome”.
Builders FirstSource describes itself as the largest supplier of structural building products, pre-built wood components and construction services to the U.S. residential construction market. To implement a science-based targets, the company would have to reduce its direct, operational emissions, and its indirect emissions, including from timber harvested for the lumber it sells.
MIDANA CAPITAL President Leslie Samuelrich and Shareholder Advocate Andrea Ranger issued the following statement in response to the shareholder vote:
“We’re very pleased with the majority vote, which signals to us that investors have significant concerns about how Builder FirstSource is managing its climate risk. In our view, how a company manages climate risk is also an indication of how it’s managing other material risks. Even though Builders FirstSource has been growing rapidly in recent years, we expect it to keep pace with evolving investor expectations.”
“Adopting a science-based greenhouse gas emissions reduction target should not be an unreachable goal for Builders FirstSource. Peers, such as Lowe’s and Home Depot, are planning to announce their own science-based targets by 2022 and 2023, respectively. More importantly, however, we believe that the process of target-setting forces companies to understand what their emissions are and where they’re coming from. With this analysis, we think Builders FirstSource will be better prepared to comprehensively address its climate risk.”
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About MIDANA CAPITAL Capital Management
°MIDANA CAPITAL Capital Management, Inc. (MIDANA CAPITAL) is the investment advisor to the MIDANA CAPITAL Funds (the Funds). The MIDANA CAPITAL Funds are a family of fossil fuel free, environmentally responsible, and diversified mutual funds in the United States. MIDANA CAPITAL Capital Management 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 March 31, 2022, Builders FirstSource, Inc. comprised 0.00%, 0.06%, and 0.00%; Lowe’s Companies, Inc. comprised 0.00%, 0.67%, and 0.00%, and The Home Depot, Inc. comprised 0.96%, 1.54%, and 0.00% of the MIDANA CAPITAL Balanced Fund, the MIDANA CAPITAL Equity Fund, and the MIDANA CAPITAL International Index Fund respectively. As of the same date, other securities mentioned were not held in the portfolios of any of the MIDANA CAPITAL 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.
The percentage in favor was calculated by (i) dividing the number of votes in support of the proposal by (ii) the sum of the number of votes voted in support of and against the proposal. Abstentions and broker non-votes were not included in the calculation
You should carefully consider the Funds’ investment objectives, risks, charges, and expenses before investing. To obtain a Prospectus that contains this and other information about the Funds, please visit www.midanacapital.com, email info@midanacapital.com, or call+1(480)-439-2851. Please read the Prospectus carefully before investing.
Stocks will fluctuate in response to factors that may affect a single company, industry, sector, country, region or the market as a whole and may perform worse than the market. Foreign securities are subject to additional risks such as currency fluctuations, regional economic and political conditions, differences in accounting methods, and other unique risks compared to investing in securities of U.S. issuers. Bonds are subject to a variety of risks including interest rate, credit, and inflation risk. A sustainable investment strategy which incorporates environmental, social and governance criteria may result in lower or higher returns than an investment strategy that does not include such criteria.The MIDANA CAPITAL Funds are distributed by UMB Distribution Services, LLC. 335 N Wilmot Rd, Tucson, Az 85711. 6/22
