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Simpson Sustainability Report 2013

RESOLVED  
Shareholders request that Simpson Manufacturing issue a sustainability report describing the company’s environmental, social and governance (ESG) risks and opportunities including greenhouse gas (GHG) emissions reduction targets and goals. The report should be available by November 1, 2013, prepared at reasonable cost, omitting proprietary information.
 
SUPPORTING STATEMENT
We believe tracking and reporting on ESG business practices makes a company more responsive to a transforming global business environment characterized by finite natural resources, changing legislation, and heightened public expectations for corporate accountability. Reporting also helps companies better integrate and gain strategic value from existing sustainability efforts, identify gaps and opportunities in products and processes, develop company-wide communications, publicize innovative practices, and receive feedback. 
 
The Principles for Responsible Investment (PRI) is a United Nations initiative whose members seek the integration of ESG factors in investment decision making. Members collectively hold over $33 trillion of assets under management and request information on ESG factors to analyze fully the risks and opportunities associated with existing and potential investments. 
 
Carbon Disclosure Project (CDP), representing over 655 institutional investors globally with more than $78 trillion in assets, has for years called for disclosure from companies on their climate change management programs. Over two thirds of the S&P 500 now report to CDP.
 
Sustainability reporting is on the rise globally. In 2011, there was a 46% increase in the number of organizations worldwide using the Global Reporting Initiative’s (GRI) Guidelines for their ESG reporting according to G&A Institute. Smaller companies are proactively adopting sustainability reporting to report on progress as they grow and anticipate sustainability reporting from investors and customers. 
 
Companies such as 3M, Apple, Intel and Microsoft, among many others, increasingly require their suppliers to track and report on key environmental and social factors. A key Simpson Manufacturing customer, Home Depot, encourages sustainability improvement reporting from suppliers through its “Supplier Sustainability Program”. Competitors such as Masco Corporation and United Technologies Group publish comprehensive sustainability reports. 
 
In contrast, Simpson Manufacturing does not report on its sustainability efforts nor disclose GHG data. Climate change is one of the most financially significant environmental issues currently facing investors. Occupational safety and health, vendor and labor standards, waste and water reduction targets and product related environmental impacts are particularly important ESG considerations in Simpson Manufacturing’s sector and may have the potential to pose significant regulatory, legal, reputational and financial risks.
 
The company recognizes on its website that “the extraction and harvesting of some raw materials can have significant social and economic impact - both positive and negative” and that it “endeavors to identify and limit the materials in [our] supply chain that pose negative implications”. However, shareholders currently have no access to substantial information on how the company is managing these business factors. 
 
We recommend that the report include a company-wide review of policies, practices and metrics related to ESG performance using the GRI index and checklist as a reference.