During our most recent engagement, in addition to discussing human capital management, we discussed the topics raised in the shareholder proposals to be voted on at the annual meeting and the company’s oversight and management of those issues that are relevant to their business model. This included the company’s plans to improve its disclosure on food waste and food diversion management and its efforts to monitor the use of certain technologies and enforce compliance with its product policies. Amazon has demonstrated a commitment to adopting best practices in corporate governance (e.g. 90% board independence, 50% board gender diversity, and balanced board tenure). As a result of past engagements, the company has agreed to enhance its governance policies, as noted by management’s proposal to lower the threshold for shareholders to request a special meeting.
- Create an alternative report on gender/racial pay
After thorough review of the company’s existing disclosures, along with insights gleaned from multiple engagements, BlackRock determined that Amazon is actively addressing those material issues raised by the various shareholder proposals. Some of the proposals were too prescriptive in their request for additional information, such as requesting an alternative report on gender/racial pay in addition to the one the company already publishes and a specific supply chain report format beyond the report currently available on the company’s website specifically addressing human rights.