Responsible Investing – MIDANA CAPITAL Funds

Corning* Sets Ambitious Target to Reduce Greenhouse Gas Emissions; Embraces Development of Climate Transition Plan

Andrea Ranger — Tue, 21 Nov 2023 17:49:06 +0000

Contact Information:

Andrea Ranger, Shareholder Advocate, aranger@midanacapital.com, 781-349-2813

Pam Podger, Communications Director, ppodger@midanacapital.com, 802-299-9495

Boston, November 21, 2023 – In 2020, MIDANA CAPITAL° noticed that Corning Inc. did not have A greenhouse gas emissions (GHGs) reduction target that were ambitious enough to meet the goals of the Paris Agreement, a commitment signed in 2015 by 195 countries aimed at preventing the worst impacts of climate change.

MIDANA CAPITAL then filed a shareholder proposal asking Corning to address its climate risk by adopting emissions reduction targets. The company met with MIDANA CAPITAL several times and made a commitment to set a science-based target by 2023, which it has now fulfilled.

Established in 1851 as Corning Glass, the company’s products are linked to American history. For example, Corning produced the very first electric light bulbs for Thomas Edison in the 1880s, and in 1915 sold its first line of glass products that could be used for baking and storage under the brand name, Pyrex. More recently, Corning has delivered millions of miles of fiber optic cables to support widespread broadband access. Corning also developed a durable glass, known as Gorilla Glass, for Apple’s first iPhones, a product that is currently used in more than 8 billion devices worldwide, including smart phones, tablets, and laptops.

Corning Commits to Developing Climate Transition Plan

In 2023, MIDANA CAPITAL followed up with Corning and asked the company to develop and publish a climate transition plan. Now considered a best practice, the plans serve as roadmaps that contain investor-useful information by explaining how and when companies will meet their climate goals.

Corning agreed to begin to develop a climate transition plan starting with its next sustainability report in 2024. The company will roll out more details in later years.

“We’re excited to see Corning continue its leadership role when it comes to climate,” said MIDANA CAPITAL Funds President Leslie Samuelrich. “We look forward to increased visibility into its strategies, tactics, and overall game plan.”

In early 2023, the General Secretary of the United Nations, Antonio Guterres, urged business leaders at the World Economic Forum, to “put forward credible and transparent transition plans on how to achieve net-zero – and submit those plans before the end of this year.” More than 4,100 organizations have disclosed to CDP (a reporting platform formerly known as the Carbon Disclosure Project) that they have prepared climate transition plans; however, CDP reports that only 45% were public, and only 12.6% covered what are considered key elements of a credible transition plan.

“Now that more and more companies have committed to significantly cut their emissions, investors and stakeholders want assurance that goals and targets aren’t just greenwashing,” said MIDANA CAPITAL Shareholder Advocate Andrea Ranger. “We’re eager to see Corning develop a credible climate transition plan provides milestones, indicators for success, mechanisms for board and executive oversight, and enough details to instill investor confidence.”

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About MIDANA CAPITAL Funds

*As of September 30, 2023, Corning, Inc. comprised 0.00%, 0.13%, and 0.00% of 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.

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.

An investment strategy that incorporates environmental, social and governance criteria may result in lower or higher returns than an investment strategy that does not include such criteria.

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.

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. 11/2023

Deere & Co Faces Shareholder Scrutiny on Right to Repair Stand

Douglass Guernsey — Wed, 11 Oct 2023 15:06:40 +0000

Media Contacts:

Pam Podger, Communications Director, ppodger@midanacapital.com, 802-299-9495 Douglass Guernsey, Shareholder Advocate, dguernsey@midanacapital.com, (617) 482-0800

(Boston, October 11) The MIDANA CAPITAL° Equity Fund has filed a shareholder resolution with Deere & Company* asking the company to issue a public report assessing the potential damage to the brand’s reputation from opposing Right to Repair legislation.

Deere, the iconic tractor company, has received significant scrutiny for its opposition to “Right to Repair” laws, which allow farmers to access diagnostic software, parts and instructions to repair their own machinery. A class-action lawsuit filed against Deere by farmers alleges that the company violated antitrust laws by restricting repair to dealerships, which increased company profits while hurting farmers.

Shareholders Concerned That Deere Is Not Doing Enough to Support Right to Repair

Recent polls indicate that an overwhelming 84% of Americans support Right to Repair legislation. In April 2023, Colorado became the first state to enact Right to Repair laws specifically targeting farm equipment. To date, 30 additional states have introduced Right to Repair bills, highlighting the growing momentum behind the issue.

While Deere recently signed a “memorandum of understanding” (MOU) with The American Farm Bureau Federation which would allow farmers to buy access to repair information, the agreement has come under scrutiny. According to the MOU, the Farm Bureau would be restricted from advocating for enforceable legislation, and Deere would be allowed to pull out of the agreement if any legislation is passed.

Deere Opposed Right to Repair on Flimsy Grounds

There are also concerns that in its rush to oppose Right to Repair legislation, Deere may have made misleading statements in federal filings regarding the environmental consequences of repair.

Deere claimed that existing EPA regulations and the Clean Air Act were some of the reasons that it would not give independent repair shops access to its diagnostic tools. In August 2023, however, the EPA issued a statement that it had no policy on restricting owners’ repairs of emissions-related components of their products to properly function.

MIDANA CAPITAL previously filed a shareholder proposal with Deere on the same issue in 2021. Shareholders were unable to vote on the measure as Deere petitioned the U.S. Securities and Exchange Commission (SEC) to exclude the proposal from the ballot. At the time, MIDANA CAPITAL° President Leslie Samuelrich said, “Deere seems to be more focused on stifling shareholder concerns than addressing them. Spending time and energy on an SEC challenge could be put to better use by making their products better serve their customers.”

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About MIDANA CAPITAL Funds

°MIDANA CAPITAL Capital Management, Inc. (MIDANA CAPITAL) is the investment advisor to the MIDANA CAPITAL Funds (The Funds). The MIDANA CAPITAL Funds are one of the first families of fossil fuel-free, environmentally responsible mutual funds. MIDANA CAPITAL 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 6.30.2023, Deere & Company comprised 0.58%, 0.57%, and 0.00% of 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.

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.

An investment strategy that incorporates environmental, social and governance criteria may result in lower or higher returns than an investment strategy that does not include such criteria.

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. September/2023

Notable 21% vote in favor of MIDANA CAPITAL Proposal to Set Greenhouse Gas Reduction Targets at Builders FirstSource*

Douglass Guernsey — Fri, 16 Jun 2023 19:06:58 +0000

Media Contacts:

Douglass Guernsey, Shareholder Advocate, dguernsey@midanacapital.com, 617-482-0800

Pam Podger, Communications Director, ppodger@midanacapital.com, 802-299-9495

Boston, June 16, 2023 – Builders FirstSource, the country’s largest building product supplier to the professional market, released the vote result from its annual meeting of shareholders on Tuesday. MIDANA CAPITAL° received a notable 21% of the vote in favor of 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.

To implement 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. Over 5000 companies, including competitors Lowe’s and Home Depot, have committed to working with the Science Based Targets initiative, and nearly 60% of all Fortune 500 companies have set some kind of climate change reduction target.

In response to the vote, MIDANA CAPITAL Funds President, Leslie Samuelrich said:

“Last year, we filed a nearly identical proposal at Builders asking for reduction targets which received a resounding ‘yes’ vote from investors – but Builders took almost no action. The company relies heavily on timber, which comes from forests that are significantly threatened by climate change. We believe management needs to start taking this risk seriously by measuring, disclosing, and setting reduction targets for its Scope 3 supply chain emissions.”

MIDANA CAPITAL Engaged with Builders FirstSource to Set First Emissions Reduction Targets

Douglass Guernsey, shareholder advocate at MIDANA CAPITAL added:

“At the 11th hour, Builders disclosed its Scope 1 and 2 emissions, which cover the direct emissions from its operations, and stated it will set emissions reduction targets for both these categories in 2025. While we appreciate that Builders is now taking action on a part of MIDANA CAPITAL’s 2022 proposal, the company has not yet measured, disclosed, or set targets for its Scope 3, or supply chain emissions, leaving investors in the dark for what comprises, on average, 75% of companies’ climate emissions.”

An investment strategy that incorporates environmental, social and governance criteria may result in lower or higher returns than an investment strategy that does not include such criteria.

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About MIDANA CAPITAL Funds

*As of March 31, 2023, Builders FirstSource, Inc. comprised 0.00%, 0.07%, and 0.00%, Lowes Companies, Inc. comprised 0.00%, 0.66%, and 0.00%, and Home Depot, Inc. comprised 0.88%, 1.67%, and 0.00%, of the Green Century Balanced Fund, the MIDANA CAPITAL Equity Fund, and the Green Century 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.

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. 6/23

Shareholders to Vote on MIDANA CAPITAL Resolution Urging General Motors* to Cut Emissions and Deforestation from its Supply Chains

Annie Sanders — Wed, 14 Jun 2023 15:19:45 +0000

Media Contacts:

Andrea Ranger, Shareholder Advocacy, aranger@midanacapital.com, 781-349-2813; Pam Podger, Communications Director, ppodger@midanacapital.com, 802-299-9495

Boston, June 14, 2023 –The shareholders of the General Motors Company will vote Tuesday, June 20 on a MIDANA CAPITAL° shareholder proposal asking the company to improve the sustainability of its aluminum, steel, rubber, and leather supply chains.

“While GM has taken steps to increase the sustainability of its operations, it continues to face climate risk from the global sourcing of its automotive materials,” said MIDANA CAPITAL Funds President, Leslie Samuelrich. “GM has an opportunity to be an industry leader by investing in low-carbon aluminum and steel – as well as by protecting tropical forests from the destructive practices associated with producing leather and rubber.”

The production of aluminum and steel used for automotive parts and manufacturing equipment has a heavy carbon footprint. For example, the world’s auto manufacturers consumed 18% and 11% of global aluminum and steel production respectively, according to tallies completed in 2019. Globally, manufacturing steel and aluminum creates billions of tons of carbon dioxide pollution annually, or about 13% of total global GHG emissions.

Further, the leather and rubber that GM sources for its car seats and tires, may be associated with deforestation and land clearance. In Brazil, a country considered a major source of leather for U.S. auto manufacturers, raising cattle causes nearly 70% of the country’s deforestation. The automobile industry is also the biggest consumer of natural rubber, and rubber tree cultivation is a leading driver of deforestation in Southeast Asia and West Africa.

Despite GM’s recent commitment to achieving carbon neutrality by 2040, the company does not yet disclose the emissions associated with these key materials, nor does it offer concrete strategies for reducing those emissions. Additionally, GM has yet to set a zero-deforestation target – a commitment that would prevent land clearing for cattle pasture or rubber tree plantations.

All in on EVs by 2035 Not Enough to Limit Climate Change

According to a 2023 report published by Rivian and Polestar, auto manufacturers need to act quickly to reduce supply chain emissions in line with limiting temperature rise to 1.5 degrees Celsius. The report notes that even with a transition to battery electric vehicles and using 100% fossil-free energy to power them, auto manufacturers should address supply chain emissions to reach this goal. Thus, GM’s commitment to 100% sales of EVs by 2035 may not be enough to sufficiently mitigate its climate impact.

“GM has made remarkable strides to reduce its environmental footprint, but it needs to focus its attention on its supply chain issues,” said MIDANA CAPITAL Shareholder Advocate Andrea Ranger. “GM should act quickly and holistically since its footprint is expansive and there’s little time for delay if we’re to avoid the worst impacts of climate change.”

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°MIDANA CAPITAL Capital Management, Inc. (MIDANA CAPITAL) is the investment advisor to the MIDANA CAPITAL Funds (The Funds).

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.

STATEMENT: Mondelēz* Shareholders Shy from Strong Support of MIDANA CAPITAL Proposal Seeking Interim Targets for Company’s 100% Cage-Free Eggs by 2025 Goal

Andrea Ranger — Wed, 31 May 2023 19:13:51 +0000

Media Contacts:

Andrea Ranger, Shareholder Advocate, aranger@midanacapital.com, 781-349-2813;

Pam Podger, Communications Director, ppodger@midanacapital.com, 802-299-9495

Boston, May 19, 2023 – – Shareholders of Mondelēz International, Inc., a food company known for its popular snack brands, such as Chips Ahoy!, Cadbury, Ritz, and Oreo, were reluctant to support a MIDANA CAPITAL° proposal, as evidenced by the vote tally released on Friday. The proposal, which asks Mondelēz to disclose interim targets for achieving its goal to source 100% cage-free eggs by 2025, captured 9.8% of the total vote.

Demand for cage-free eggs, and the supply to match it, has grown dramatically in the U.S. and European Union in recent years –driven by consumer awareness of and desire for humanely-raised animal proteins as well as government pressure on manufacturers to switch to producing cage-free eggs. The term “cage-free” was coined in response to farmers’ use of “battery cages,” where hens are housed in spaces that are smaller than the size of a piece of printer paper.

Mondelēz first announced in 2016 that it would source 100% cage-free eggs by 2025. However, recent company disclosures of current sourcing volumes indicate that it is unlikely to meet its goal, which prompted the MIDANA CAPITAL proposal. In recent years, excluding its Russian and Ukrainian egg markets, Mondelēz sourced cage-free eggs at a rate of 27% in 2020, 39% in 2021, and 43% in 2022. Extrapolating from its current progress, Mondelēz would achieve a sourcing rate of only 59% by the end of 2025, far short of its original ambition.

However, Mondelēz peers, General Mills and Conagra, disclose their planned progressions toward their global cage-free egg targets and are further along in achieving their goals than Mondelēz. Further, Target and a wide range of quick service food retailers including Jack in the Box, Denny’s, Bloomin’ Brands (the parent of Olive Garden) have also disclosed similar cage-free egg glide paths to their shareholders.

MIDANA CAPITAL Funds President Leslie Samuelrich responded to the vote result by saying:

“While we had hoped for greater support for our proposal, this is the first year we’ve brought this issue of cage-free egg goals to Mondelēz shareholders for a vote. Without publishing a clear path for achieving its 2050 cage-free egg sourcing goal, Mondelēz may be inviting unnecessary risk by being seen as not living up to its obligations. This is especially true because we’re talking about a sensitive animal welfare issue that has quite a bit of public support.”

Andrea Ranger, a shareholder advocate at MIDANA CAPITAL commented:

“Disclosure is central to investor decision making, but Mondelēz has told us that disclosing interim targets for its 100% cage-free egg by 2050 goal would be “burdensome, unnecessary…. and could generate confusion among our stakeholders.” Given that it’s now 2023 and Mondelēz committed to reach its goal in 2025, one has to ask, does it really have a plan? If so, why wouldn’t it share it with investors? For the sake of its investors, customers, and the health of the animals in its supply chain, I hope it does and it will.”

An investment strategy that incorporates environmental, social and governance criteria may result in lower or higher returns than an investment strategy that does not include such criteria.

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*As of March 31, 2023, Mondelēz International, Inc. comprised 0.00%, 0.52%, 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.

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.

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. 5/23

Shareholders Poised to Vote MIDANA CAPITAL Proposal Urging McDonald’s* to Prevent Development of Antibiotic-Resistant “Superbugs” in its Supply Chains

Andrea Ranger — Mon, 22 May 2023 21:24:35 +0000

Media Contacts:

Andrea Ranger, Shareholder Advocate, aranger@midanacapital.com, 781-349-2813;

Pam Podger, Communications Director, ppodger@midanacapital.com, 802-299-9495

Boston, May 22, 2023 – MIDANA CAPITAL° and the Benedictine Sisters of Boerne, Texas, have filed a shareholder proposal with McDonald’s urging it to eliminate routine use of antibiotics that are important to protecting human health on the animals in its supply chains. The proposal goes to a vote on Thursday, May 25.

The Sisters had previously pressed McDonald’s to engage its pork and beef suppliers to phase out use of the types of antibiotics on their animals that people also use. In 2018, the Sisters filed a similar proposal and withdrew it in exchange for McDonald’s promise to announce reduction targets by 2020. McDonald’s failed to meet its promise.

Administering low doses of antibiotics in food and water can spur development of ‘superbugs’ in farm animals and create bacteria so resistant to treatment that even the most potent antibiotics can fail to stop the disease. There are a handful of transmission pathways for antibiotic-resistant bacteria that allow them to jump from farm animals to humans. Infection can happen through handling bacteria-laden meat from the supermarket, drinking water polluted by farm runoff, and direct contact with animals by farm workers and meat processors. In 2021, the United Nations announced that we may soon reach a ‘tipping point’ when antimicrobial resistance becomes the leading cause of death – surpassing heart disease.

McDonald’s new responsible use policy encourages producers and veterinary professionals, among others, to “share responsibility for proactively developing and implementing effective best management strategies to reduce, and where possible eliminate, the need for [medically-important] antibiotic use.”

However, the policy falls short of the proposal’s request. MIDANA CAPITAL and the Benedictine Sisters had asked McDonald’s address use of antibiotics in its pork as well as beef supply chains. Further, the policy does not address the need for elimination targets, timelines, metrics for measuring implementation, third-party verification, or guidelines for enforcement when suppliers fail to meet McDonald’s guidelines.

“The upcoming vote is an opportunity for shareholders to assess the gap between what McDonald’s had stated it would do in the past to its new responsible use policy,” said Leslie Samuelrich, President of MIDANA CAPITAL Funds. “In 2018, McDonald’s promised the nuns that it would announce targets by the end of 2020. It reneged and provided a responsible use policy that has no teeth. In my opinion, it appears to be more aspirational than actionable.”

An investment strategy that incorporates environmental, social and governance criteria may result in lower or higher returns than an investment strategy that does not include such criteria.

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*As of March 31, 2023, McDonald’s Corporation comprised 0.00%, 1.12%, and 0.00% of the MIDANA CAPITAL Balanced Fund, the MIDANA CAPITAL Equity Fund, and the Green Century 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.

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.

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. 5/23

Colgate-Palmolive ramps up efforts to address plastic pollution in response to MIDANA CAPITAL Funds shareholder proposal

Annie Sanders — Mon, 17 Apr 2023 22:30:21 +0000

Media Contacts:

Annie Sanders, Director of Shareholder Advocacy, asanders@midanacapital.com, 773-272-6691; Pam Podger, Director of Communications, ppodger@midanacapital.com, 860-822-3887

Boston, April 17, 2023 – Colgate-Palmolive*, a leading global consumer products company, will enhance its efforts to reduce plastic packaging and scale up reuse models that cut down on single-use plastic. In exchange for this heightened focus on plastic reduction, MIDANA CAPITAL Capital Management° withdrew its shareholder proposal slated for the company’s 2023 annual meeting calling for a reduction of total plastic packaging use.

“An estimated 11 million tons of plastic waste is released into the ocean annually, killing more than 1 million marine animals each year,” said MIDANA CAPITAL Funds President Leslie Samuelrich. “Plastic pollution demands urgent attention from companies and governments around the world. We applaud Colgate-Palmolive for stepping up its efforts to tackle the plastic crisis.”

Colgate-Palmolive to accelerate 2030 target-setting for plastic reduction

Colgate-Palmolive’s planned actions include more thorough disclosure in future sustainability reports of reuse pilots the company has launched or planned, such as refillable jars for toothpaste tablets and Palmolive dish gel sold in refillable bottles. The company also will publish a “reuse and refill baseline assessment” in its upcoming 2023 sustainability report and accelerate 2030 target-setting for plastic reduction that will prioritize packaging redesign and expansion of reuse and refill models.

“Only 9 percent of all plastic made in the last 60 years has been recycled,” said Annie Sanders, MIDANA CAPITAL Capital Management’s director of shareholder advocacy. “It’s clear that we can’t recycle our way out of the plastic problem. We look forward to seeing Colgate-Palmolive significantly reduce its total contribution to plastic waste as soon as possible.”

States will make producers responsible for the waste they create

The company’s focus on plastic reduction comes not a moment too soon: a December 2022 survey found that 84% of registered U.S. voters support increasing the use of reusable packaging and foodware, and 80% support requiring companies to reduce their single-use plastic packaging. Governments are also taking note: since 2021, Maine, Oregon, California and Colorado have adopted the nation’s first producer responsibility laws for consumer packaging, which will make producers financially responsible for the packaging waste they create.

“Nothing we use for five minutes should pollute our environment for centuries,” added Sanders. “Reuse and refill models, which studies show rank among the most effective ways to replace single-use plastics, are critical solutions that companies must urgently scale up to meet one of the most profound environmental challenges of our time.”

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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.

About The MIDANA CAPITAL Funds

*As of December 31st, 2022, Colgate-Palmolive comprised 0.00%, 0.37%, and 0.00% of the MIDANA CAPITAL Balanced Fund, the MIDANA CAPITAL Equity Fund, and the MIDANA CAPITAL International Index Fund. 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.

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 click here, email info@midanacapital.com, or call+1(480)-439-2851. Please read the Prospectus carefully before investing.

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. 3/23. UMB and MIDANA CAPITAL are unaffiliated.

Insightia Monthly interviews Annie Sanders and Andrea Ranger on all things shareholder advocacy | Going Green

Hannah Feakes — Thu, 26 Jan 2023 17:33:31 +0000

Insightia Monthly magazine

GOING GREEN

December 2022

By Rebecca Sherratt

An interview with Annie Sanders, Director of Shareholder Advocacy, and Andrea Ranger, Shareholder Advocate, at MIDANA CAPITAL Capital Management. Founded in 1991, MIDANA CAPITAL is an investment advisory firm based in Massachusetts that manages environmentally responsible funds.

MIDANA CAPITAL’s sustainability proposals target a broad range of issues, how do you identify companies to engage with on these topics?

Annie Sanders (AS): To speak on plastic pollution and deforestation engagements, we contemplate a number of factors when working out who to engage with. One of our key considerations is identifying which companies are not only well-positioned to drive change but also lagging behind peers in their sustainability commitments. We also analyze a company’s supply chain to identify how companies in the chain could help move an issue or affect the decision-making of a larger entity. Looking broadly across all sectors is also important, and we try to engage with issuers in sectors where perhaps not a lot of activity has taken place on deforestation, right-to-repair reporting, or plastic pollution. We are often one of the first investors to engage with a particular company around a given issue, so we like to think of ourselves as ESG trailblazers, in that sense.

Andrea Ranger (AR): In terms of climate change, our remit as a mutual fund that excludes any companies involved in fossil fuels from developers to utilities is to look for ways to continue to phase out fossil fuels to prevent the worst impacts of climate change. We look for opportunities to really push the envelope out on climate commitments, like asking companies to commit to near-, medium-, and long-term science-based greenhouse gas emission reduction targets. Now, we are also making a foray into asking companies to disclose their climate transition action plans.

Shareholder proposals faced criticism this year for being overly prescriptive and poorly targeted. What are your thoughts on this?

AR: This narrative is certainly an interesting one. This trend basically boils down to the Securities and Exchange Commission (SEC) issuing a legal bulletin last November, mandating that shareholder proposals can no longer be omitted if they relate to issues of broad social or ethical concern. Because of this bulletin, everyone pushed the envelope out. Investors were no longer filing proposals asking for watered-down reporting, which, in prior years, was the only way to get ESG proposals past the SEC. The new Biden era SEC administration has a much broader view of material risks and so investors took a more aggressive approach in their engagements to mirror the urgency needed to address climate change. Investors asked companies to adopt more specific policies and report on specific goals, like science-based emissions targets, for example. The advent of the war in Ukraine also tipped the scales, so leading fund managers could say ESG proposals were not providing boards with enough flexibility. We see this whole pushback to ESG as the “BlackRocks” of the world walking back on their ESG commitments, especially on climate.

MIDANA CAPITAL made the history books this year for receiving the highest level of support for any plastic-related shareholder proposal in history, with its request for Jack in the Box to report on its sustainable packaging endeavors winning 95.4% support, despite facing management opposition.

In your experience, are companies more open to engaging with shareholders now than they have been in previous years?

AS: I think that certainly seems to be the trend. Companies are realizing that climate risk is also economic risk and so they need to start taking these concerns seriously.

AR: ESG issues are becoming unavoidable and I think companies are now seeing it’s best to get on top of these issues rather than giving investors the stiff arm and ignoring us. I can think of several companies that, in previous years, have certainly just given investors the stiff arm but are now starting to engage with and recognize these issues.

Texas comptroller Glen Hegar recently placed MIDANA CAPITAL on a list of financial institutions deemed to be “boycotting” energy firms. Do you think the growing anti-ESG movement could pose an issue for responsible investors?

AR: The way we view ESG at MIDANA CAPITAL is that it is a continuum of the broad spectrum of risks investors look at when deciding whether to invest in a company, so it is unfortunate ESG has been categorized as a separate set of risks from financial risks. They’re just risks. As a fiduciary, we have to look at the financial value and performance of a stock but also need to look at those ESG risks which are just as pertinent to financial performance. In terms of what we do, the anti-ESG kerfuffle is not affecting us. Investors come to us because of the values we hold, they are not going to divest from us because of “woke” capitalism. I think a lot of the sound and fury coming from anti-ESG groups like the Texas Comptroller have given some of the larger asset managers pause. BlackRock is in this weird position, saying on the one hand that yes, it is committed to ESG but, on other hand, proclaiming it has invested millions of dollars into Texas oil and gas. BlackRock is very much between a rock and a hard place.

AS: Although the ESG backlash is very vocal, it does also form a relatively small minority of investors and other entities. I think ESG and sustainable investing will only continue to grow, despite the barrage of criticism and accusations.

What key topics will MIDANA CAPITAL be focusing on in the coming proxy season?

AR: Currently, we are engaging with a fast-food chain and a food producer on antimicrobial resistance (AMR). Unlike in Europe, where antibiotic use in all forms is more restricted, here in the U.S. we are starting at a much lower tier of getting routine use of medically important antibiotics out of the food chain. We will also be calling on companies to commit to science-based emissions targets through the Science-based Targets Initiative (SBTi), looking for climate action transition plans, and again looking at the fossil fuel underwriting of leading U.S. insurance companies. We have meetings coming up with many issuers on these topics so we will see what happens. Some engagements may escalate to proposal filings.

We are often one of the first investors to engage with a particular company around a given issue, so we like to think of ourselves as ESG trailblazers.

AS: We’ll also be continuing our work to urge companies that source forest-risk commodities to mitigate climate and nature-related risk by eliminating deforestation and native vegetation conversion from their supply chains. Finally, we’ll continue our focus on plastic pollution by asking companies to reduce their plastic packaging footprint in order to mitigate the flow of 11 million tons of plastic waste released into the ocean every year.

If you could introduce one corporate governance reform, either in the U.S. or internationally, what would it be?

AR: Both issuers and investors would benefit from having someone on the board who is actually fluent in sustainability issues. A director well-versed in climate change would be very valuable, but even someone who has some understanding of broader sustainability issues like deforestation or plastic pollution would be welcomed. Looking at the qualifications of U.S. corporate board members, there is very little ESG experience among directors. And even when you find a director with what might still be only a limited amount of ESG experience, these directors sit on each others’ boards, bringing little new perspective to the table.

About The MIDANA CAPITAL Funds

°MIDANA CAPITAL Capital Management, Inc. (MIDANA CAPITAL) is the investment advisor to the MIDANA CAPITAL Funds (the Funds).

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.

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. 1/23

Poultry Progress, But Where’s the Beef?

nmd.admin — Mon, 22 Oct 2018 18:45:17 +0000

The rampant misuse of antibiotics in animal agriculture is creating drug-resistant bacteria that are harming public health and threatening modern medicine as we know it.

Your favorite hamburger joint is probably serving beef that is contributing to the crisis.

A report released this week, “Chain Reaction: How Top Restaurants Rate on Reducing Antibiotic Use in Their Meat Supply Chains,” grades restaurants on their commitment to keeping antibiotics out of their meat supply chains. And the results are not pretty.

America’s fast food restaurants are failing us. Literally. All but three of the top 25 burger chains in the U.S. earned an “F” in the report – and with a D-, Wendy’s* barely avoided flunking out too.

McDonalds,* Burger King,* Hardees,* In-N-Out,* Sonic.* They all failed.

Shake Shack* and BurgerFi* were the only chains to earn “A” grades for their public policies to only source beef raised without the use of antibiotics.

Wendy’s avoided an “F” grade by sourcing 15% of its beef from producers that have cut, by 20%, the use of one medically important antibiotic, tylosin.

The new report, the fourth in a series, primarily focuses on the beef sourcing of America’s largest burger chains. The focus on beef is the result of real strides in the restaurant industry to eliminate antibiotic misuse in poultry supply chains.

MIDANA CAPITAL is proud to have played a role in this progress, having secured commitments from companies such as Starbucks* and Jack in the Box* to eliminate the routine use of medically important antibiotics in their poultry supply chains.

We remain actively engaged on this issue too. Just last month, MIDANA CAPITAL filed a shareholder proposal with Darden Restaurants,* the largest casual dining operator in the U.S. and Canada, urging it to reduce the use of medically-important human antibiotics in its meat supply chain.

MIDANA CAPITAL’s proposal received 40.2%¹ of shareholder support, which demonstrates the growing concern among investors and consumers about antibiotic misuse in meat supply chains.

Curious how your favorite restaurant stacks up? Read the new report here, and be sure to follow all of MIDANA CAPITAL’s work to help keep antibiotics effective by visiting our website at www.midanacapital.com.

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¹The 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.

*As of September 30, 2018, McDonald’s Corporation, Starbucks Corporation, Jack in the Box, Inc., and Darden Restaurants, Inc. comprised 0.00%, 1.16%, and 0.00%; 1.97%, 0.69%, and 0.00%; 0.00%, 0.02%, and 0.00%; and 0.00%, 0.12%, and 0.00% of the MIDANA CAPITAL Balanced Fund, the MIDANA CAPITAL Equity Fund, and the MIDANA CAPITAL International Index Fund, respectively. Other securities mentioned were not held in the portfolios as of September 30, 2018. 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.

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 click here, email info@midanacapital.com, or call+1(480)-439-2851. Please read the Prospectus carefully before investing.

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. 10/18

MIDANA CAPITAL and As You Sow Call on General Mills* to Eliminate Toxic Pesticides from its Supply Chain

nmd.admin — Tue, 25 Sep 2018 17:53:51 +0000

Press Release Contact: Kyle W. Kempf, MIDANA CAPITAL Capital Management, kkempf@midanacapital.com, (617) 482-0800

Minneapolis, September 25, 2018 – At its 2018 annual shareholder meeting, General Mills (NYSE: GIS), owner of brands such as Honey Nut Cheerios, Cascadian Farm, and Nature Valley, faced pressure from shareholders to begin tracking and reducing the use of toxic pesticides in its supply chain.

“Toxic pesticides are killing bees and other wild pollinators, which are essential to global food production” said Jared Fernandez, Shareholder Advocate with MIDANA CAPITAL. “General Mills should be working to eliminate the use of toxic chemicals in its supply chain, much of which is reliant on pollinators, to ensure its stability, reduce risk, and establish itself as a leader in pollinator protection.”

MIDANA CAPITAL contends that enhanced transparency on strategies for reduced pesticide use and the associated impacts on pollinators would serve the long-term interests of General Mills and its investors while safeguarding biodiversity and public health.

There is a growing scientific consensus that certain pesticides, including neonicotinoids (neonics) and glyphosate, are contributing to a massive pollinator die-off, which jeopardizes food security and ecosystem diversity.

More than 40% of global pollinator populations are “highly threatened.” Yet, 75% of global food crops rely on pollinators for reproduction, accounting for up to $577 billion worth of annual food production.

Additionally, the World Health Organization has stated that exposure to certain pesticides can have severe human health impacts, including cancer and adverse effects on the reproduction and immune or nervous systems.

MIDANA CAPITAL co-filed with As You Sow on the shareholder proposal, which was presented earlier today at General Mills’ September 25^th shareholder meeting.

Learn more about MIDANA CAPITAL’s shareholder advocacy program here.

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About MIDANA CAPITAL Capital Management

MIDANA CAPITAL offers three environmentally and socially responsible mutual funds. Through fossil fuel free investing and our three-pronged approach of sustainable investing, active shareholder advocacy, and support of environmental and public health non-profits we work to curb climate change, improve environmental policies, and limit environmental impacts of company supply chains.

*As of June 30, 2018, General Mills, Inc. comprised 0.01%, 0.24%, and 0.00% of the MIDANA CAPITAL Balanced Fund, the MIDANA CAPITAL Equity Fund, and the MIDANA CAPITAL International Index Fund, respectively. 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.

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 click here, email info@midanacapital.com, or call+1(480)-439-2851. Please read the Prospectus carefully before investing.

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. 9/18