Palo Alto Networks Inc. (PANW) is facing a shareholder proposal urging the company to report on how it is managing systemic climate risks within its retirement plan options. The proposal, submitted by the advocacy group As You Sow, is set to be voted on at the annual meeting on December 10, 2024. It highlights the potential financial risks to retirement savings from investments in high-carbon industries, particularly for employees with longer investment horizons. As You Sow's analysis suggests that Palo Alto Networks' 401(k) Plan, with significant investments in high-carbon and deforestation-risk industries, could be jeopardizing the financial future of its beneficiaries and the company's ability to attract and retain talent. The proposal calls for the company to...Show More

Palo Alto Networks Inc. (PANW) is facing a shareholder proposal urging the company to report on how it is managing systemic climate risks within its retirement plan options. The proposal, submitted by the advocacy group As You Sow, is set to be voted on at the annual meeting on December 10, 2024. It highlights the potential financial risks to retirement savings from investments in high-carbon industries, particularly for employees with longer investment horizons. As You Sow's analysis suggests that Palo Alto Networks' 401(k) Plan, with significant investments in high-carbon and deforestation-risk industries, could be jeopardizing the financial future of its beneficiaries and the company's ability to attract and retain talent. The proposal calls for the company to demonstrate active consideration and management of climate risks in line with its fiduciary duties. The Board of Directors has opposed the proposal, stating that the 401(k) plan offers a diverse array of investment options and that fiduciaries must select investments based on economic factors, not to promote unrelated goals. However, As You Sow argues that climate risk is a material economic factor that must be considered to safeguard employees' retirement savings and the company's long-term value.