Chemed Corporation | Sustainability Reporting

AGM date
Previous AGM date
Resolution details
Company ticker
Resolution ask
Report on or disclose
ESG theme
  • Environment
  • Social
  • Governance
ESG sub-theme
  • Other
Type of vote
Shareholder proposal
Filer type
Company sector
Health Care
Company HQ country
United States
Resolved clause
Shareholders request Chemed Corporation issue a report describing the practices, goals, and metrics it utilizes to assess performance managing potentially material environmental, social, and governance (ESG) risks and opportunities. The report should be updated annually, prepared at reasonable cost, and omit proprietary information.
Whereas clause
Regardless of company size or industry, public sustainability reporting on material ESG risks and opportunities can contribute to long-term business success and creation of shareholder value by helping companies better recognize operational efficiencies, enhance competitiveness, and identify new revenue generating opportunities. It can also help companies attract and retain talent, build brand and reputational value, and better manage an evolving regulatory landscape.

Although Chemed Corporation (“Chemed”, or the “Company”) includes high-level policies on its website related to topics such as human rights, business ethics, and environmental impacts, it lacks further transparency regarding the implementation, monitoring practices, and outcomes of such policies. Neither the VITAS nor Roto-Rooter operating businesses publish relevant sustainability disclosures.

The lack of enterprise-wide ESG disclosure at Chemed hinders the ability of investors to enhance the risk-adjusted returns of portfolios through integration of financially material ESG performance data. Although the Company’s annual report touches upon the importance to the business of topics such as human capital, cybersecurity, and ethical business practices, the discussion is at a high level and lacks decision-useful data points to understand the effectiveness of risk management policies and practices.

The need for enhanced disclosure of ESG risk and opportunity management is underscored by recent events:
 In 2022, Chemed completed a five-year Corporate Integrity Agreement (CIA) connected with a $75,000,000 settlement to resolve False Claims Act litigation brought by the US Department of Justice in 2017. Despite 95% of the VITAS segment revenues consist of payments from Medicare and Medicaid, Chemed has yet to comprehensively detail its strategy to avoid future regulatory penalties related to fraud.
 The turnover rate for clinical healthcare workers spiked during the onset of the coronavirus pandemic. VITAS has sought to stem turnover by implementing a hiring and retention bonus program at an estimated cost of $23,800,000 in 2023 yet lacks associated turnover data to enable investors to understand the efficacy of such investments.

Within the health care delivery industry, peers such as Acadia Healthcare, Amedisys Inc., DaVita Inc., HCA Healthcare, and Tenet Healthcare Corp have all responded to evolving investor expectations by regularly reporting on sustainability risks, opportunities, and associated metrics.
Supporting statement
In determining relevant content for the report, we recommend, at management’s discretion, consideration of the following:
• Utilization of recognized frameworks, such as SASB Standards, to ensure consistent, comparable, and decision-useful disclosures,
• Quantitative, timebound goals for improvement against baseline performance, and
• Discussion of how sustainability considerations are integrated into business strategies and operational decisions.

DISCLAIMER: By including a shareholder resolution or management proposal in this database, neither the PRI nor the sponsor of the resolution or proposal is seeking authority to act as proxy for any shareholder; shareholders should vote their proxies in accordance with their own policies and requirements.

Any voting recommendations set forth in the descriptions of the resolutions and management proposals included in this database are made by the sponsors of those resolutions and proposals, and do not represent the views of the PRI.

Information on the shareholder resolutions, management proposals and votes in this database have been obtained from sources that are believed to be reliable, but the PRI does not represent that it is accurate, complete, or up-to-date, including information relating to resolutions and management proposals, other signatories’ vote pre-declarations (including voting rationales), or the current status of a resolution or proposal. You should consult companies’ proxy statements for complete information on all matters to be voted on at a meeting.