STATEMENT: MIDANA CAPITAL Shareholder Proposal on Climate Change Wins Vote with 88.5% Approval at US Foods* Annual Meeting
Media Contacts: Thomas Peterson, Shareholder Advocate, tpeterson@midanacapital.com, 781-349-2615; Mark Morgenstein, Media Relations Director, markm@midanacapital.com, 678-427-1671
Boston, May 20, 2022 – At US Foods’ annual meeting on Wednesday, 88.5% of voting shareholders approved a MIDANA CAPITAL° shareholder proposal asking the company to set science-based targets to reduce its greenhouse gas emissions. The proposal offered an opportunity for shareholders to recommend that US Foods set ambitious emissions reduction targets to achieve “net-zero emissions by 2050 or sooner.”
The US Foods Board of Directors stated an intention to “substantially implement” MIDANA CAPITAL’s proposal and did not make a recommendation on whether shareholders support or oppose the proposal.
US Foods, the nation’s second-largest food distributor, supplies more than 250,000 restaurants, hotels, schools, healthcare facilities and other institutions nationwide. It is critical that food companies act rapidly to reduce their climate impact because greenhouse gas emissions from the food system represent roughly a third of all planet-warming emissions.
MIDANA CAPITAL Shareholder Advocate Thomas Peterson issued the following statement in response to the shareholder vote:
“US Foods shareholders sent a resounding message: The company must accelerate its efforts to limit the climate impact of both its fleets and its supply chains and set ambitious targets to reduce emissions by 2030 and achieve net-zero emissions by 2050 or sooner. As one of the largest American food distributors, US Foods’ emissions reduction efforts can catalyze change in the food industry.
“US Foods traces its origins back to the 19th century, but it has never faced a situation quite like this. Climate change will have unprecedented consequences for agricultural supply chains for decades to come, and companies need to adapt to mitigate these impacts and maintain competitiveness. US Foods must therefore implement strategies to limit the emissions generated by the production of the food it distributes, while also reducing the planet-warming pollution from its fleet of roughly 6,500 trucks.
“This strikingly high majority vote from US Foods shareholders follows a landmark 70% vote from Costco* shareholders in favor of a similar MIDANA CAPITAL proposal in January, and underscores that investors expect food companies to act rapidly to reduce their climate impact.”
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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 mutual funds. 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, Costco Wholesale Corporation comprised 1.45%, 0.00%, 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 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.midanacapital.com, email info@midanacapital.com, or call+1(480)-439-2851. Please read the Prospectus carefully before investing.
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This information has been prepared from sources believed reliable. The views expressed are as the date of this writing and are those of the Advisor to the Funds.
The MIDANA CAPITAL Funds are distributed by UMB Distribution Services, LLC. 335 N Wilmot Rd, Tucson, Az 85711. 5/22
