NYSE Top 5 - New initiative will combine CEDA / USEEIO emissions factors, Tumelo notes increase in passthrough voting
Week ending August 8, 2025
Recommendations from the American Academy of Dermatology:
-Apply sunscreen 15 minutes before going outdoors
-Set 2-hour reminders to reapply
-Use at least 1 ounce of suntan lotion to cover the entire body
One additional tip from the NYSE Top 5 - a complete application for full protection will take approximately two minutes - allowing for multitasking, starting right…now.
(Note that we’ll be putting these tips to work ourselves next week on a long-awaited vacation - see you on August 22).
-Brian Matt, CFA, Head of Sustainability Advisory, NYSE
1 - New Cornerstone initiative will take over sunsetting EPA USEEIO emissions factors dataset
Sidley Austin has the background from Thursday here, noting that the EPA eliminated the positions and group responsible for maintaining one of the most commonly-used federal emissions factor data sets, after 13 years of operation. Note that the most current US Environmentally-Extended Input-Output data set is the third-most accessed data set on the roster of federal databases (here). A press release this morning from Watershed, which currently operates the CEDA emissions factor database, states that an organization called Cornerstone will take over the maintenance of this data set going forward, and will involve contributions from the individuals involved. (Watershed mentions that 65% of global Scope 3 corporate carbon measurements use either the USEEIO or CEDA factors). Sidley reminds that, with Scope 3 included in the upcoming California CARB requirements, you may want to verify your data sources for everything you’ll need for compliance well in advance.
2 - Ecovadis 9th annual index shows progress on supply chain sustainability evaluation
For those that either use or take part in the Ecovadis evaluation, this annual report (free reg req’d) can serve as the benchmark for either you or your suppliers, and it has breakdowns by country and sector as well as the typical scoring increase year-on-year for each consecutive participation (Page 10). As with any reporting based entirely on scores, we tend to look for progress in externally-measurable items (39% of participants are now buyers/producers of clean energy, up from 32% in 2023, Page 24, and 37% of companies have measures to protect third-party data, up from 33% in 2023). Your procurement team may find some of the benchmarks on Page 39 valuable, including integration of E&S clauses into supplier contracts, currently at 50% of large companies and 25% across the network.
3 - Diligent, EY, Cooley proxy season lookbacks show increase in proposals withdrawn, increased AI oversight
We’re about a month removed from proxy season, so it’s a good time to review vote totals. Some interesting angles:
-Cooley notes that proposal withdrawals hit 150 this year, up from just 66 last year, and suggesting a lot more negotiation between companies and proponents. Note that some proponents publish the full record of their proposal outcomes (whether negotiated, excluded, or voted - As You Sow’s is here) - we think it’s a good idea to know the end results of any activity in your sector.
-EY points out that the number of S&P 500 companies noting that they’ve designated a board committee with AI oversight responsibilities tripled in 2025, and 13% of S&P 500 companies now have a technology committee of the board.
-Diligent’s year-end wrap (here, free reg req’d) notes that proponents may be engaging more with asset owners directly as proposal support drops off, as well as shifting tactics to target smaller / lesser-known companies.
Remember, Form N-PX reports that show how each of your mutual fund holders voted this year will be filed throughout the month, with an 8/31 deadline - you should start seeing a picture of your most recent proxy in the next few weeks…
4 - Tumelo notes sharp increase in passthrough voting
…but don’t be surprised if you see more “split voting” taking place within firms as they respond to asset owners. Net Zero Investor quotes stewardship services provider Tumelo as seeing a 175% increase in asset owners using passthrough voting in the 2025 compared to the 2024 season. The article quotes conversations with asset owners that are even looking at ways to have their beneficiaries express voting preferences directly. (Note that Tumelo was a presenter in the SEC’s recent roundtable looking at passthrough voting and voting choice, covered in Top 5 #188, as the SEC reviews potential changes to the proxy plumbing process). The result for companies may mean a need to have a direct relationship with your asset owners (such as state or local pension plans), as well as a larger “error term” on your vote projections for firms with passthrough structures.
5 - UNPRI: Asset managers wrestle with data to manage portfolios to transition
Similar to what NYSE does with our listed company sustainability teams, UNPRI gathers its asset manager and asset owner members in Chatham House roundtable format throughout the year and publishes the results - the latest from UNPRI is here and makes our thinkpiece slot this week with viewpoints that are relevant to issuers. Two worth mentioning:
-Many investors struggle with the right denominator to evaluate corporate decarbonization - EVIC (Enterprise Value Including Cash) is a common measure, but can be volatile based on changes to the capital structure that have nothing to do with a company’s transition plan.
-Data lag often means a backwards look that has little to do with the company’s current progress.
Good beach read, but also something that may affect how you talk about your decarbonization plan to your shareholders; as with anything done for investor relations purposes, we think the goal should be to build trust.
Get the Top 5 in your inbox each week - here.