UNITED PARCEL SERVICE, INC. | Report risks or costs caused by state policies restricting reproductive rights at UNITED PARCEL SERVICE, INC.

Status
8.85% votes in favour
AGM date
Previous AGM date
Proposal number
9
Resolution details
Company ticker
UPS
Lead filer
Arjuna Capital
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Public health
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Industrials
Company HQ country
United States
Resolved clause
Resolved: Shareholders request that the UPS Board of Directors issue a public report prior to December 31, 2023, omitting confidential information and at reasonable expense, detailing any known and potential risks or costs to the company caused by enacted or proposed state policies severely restricting reproductive rights, and detailing any strategies beyond litigation and legal compliance that the company may deploy to minimize or mitigate these risks.
Supporting statement
Companies must navigate a patchwork of state laws with respect to the provision of reproductive health care. In recent decades, states have passed more than 600 laws restricting abortion access, and twelve states now ban most abortions. Other states have enacted legislation that protects these rights. United Parcel Service, Inc. ("UPS") employs nearly 93,000 female employees and has significant operations in states where reproductive rights are severely limited. These employees face challenges accessing reproductive healthcare, including abortion services, for themselves or family members. Employers, as well as employees, bear the cost of restricted access to reproductive health care. Women who cannot access abortion are three times more likely to leave the workforce than women who are able to access abortion when needed, and four times as likely to slip into poverty (bit.ly/37qrmMw).
The Institute for Women's Policy Research estimates that state-level abortion restrictions may annually keep more than 500,000 women aged 15 to 44 out of the workforce. These factors may harm UPS's ability to meet the diversity goals in its 2021 Global Reporting Initiative report (bit.ly/3Al0U2i), with negative consequences to performance, brand and reputation. UPS may find it more difficult to recruit employees to states that have outlawed abortion (bit.ly/3Ctj3Zl). According to a 2022 survey commissioned by Lean In, strong majorities of women under 40, regardless of political affiliation, would prefer to work for a company that supports abortion access (Forbes, 8.2.22). In addition, a 2022 Harris Poll found that in the wake of the Dobbs decision, 69 percent of employees aged 18 to 34 want more clarity and transparency about their organization's policies and benefits for reproductive healthcare (https://bit.ly/3OqENNL). Surveys have consistently shown that a majority of Americans wanted to keep the Roe v. Wade framework intact. In a 2021 survey of U.S. consumers, 64 percent said employers should ensure that employees have access to reproductive health care and 42 percent would be more likely to buy from a brand that publicly supports reproductive health care (bit.ly/3nmzd2U).

How other organisations have declared their voting intentions

Organisation name Declared voting intentions Rationale
Anima Sgr For Given that the federal protection to a right to abortion that was initially recognized in Roe v. Wade has been overturned, triggering abortion bans in various states, the likelihood that the company's workforce will be impacted has increased. Furthermore, workers' rights issues could have consequential financial implications. Given the recent turmoil in the U.S. legislative landscape, an increasing number of shareholders and other stakeholders are legitimately concerned about the potential impacts related to workers' access of reproductive health services. Firms which do not share that concern risk damaging its corporate reputation and possible backlash from its workforce. Poor workers' rights practices could also lead to litigation against the company, which can be costly and time consuming. The establishment of rigorous standards regarding its workforce practices throughout the company, coupled with sufficient oversight, can reduce exposure to related risks. For these reasons, additional information on the potential risks and costs associated with proposed or enacted state policies that restrict reproductive healthcare would allow shareholders to assess how the company is managing such risks.
VidaCaixa For
Rothschild & co Asset Management For

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