Constellation Energy Corporation | DEI ROI Oversight at Constellation Energy Corporation

Status
Filed
AGM date
Previous AGM date
Proposal number
4
Resolution details
Company ticker
NASDAQ: CEG
Lead filer
National Center for Public Policy
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Diversity, equity & inclusion (DEI)
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Energy
Company HQ country
United States
Resolved clause
Shareholders request the Board of Directors of Constellation Energy Corporation conduct an evaluation and issue a report within the next year, at reasonable cost and excluding confidential information, assessing whether the Company’s diversity, equity, and inclusion (DEI) initiatives have been and are authorized and maintained on the basis of net-present-value and return-on investment calculations, including opportunity costs and risks of litigation and backlash for perceived and/or actual discrimination in the name of equity and inclusion. Rebranding DEI initiatives with labels, such as “respect, belonging, diversity, and inclusion,” will in no way alter the scope of the report.
Supporting statement
DEI initiatives must be subject to rigorous financial and risk oversight to protect shareholder value. The requested report will allow shareholders to properly value their shares and better assess the myriad risks associated with socially significant DEI, including potential litigation and reputational backlash. This proposal is driven by specific concerns about Constellation’s current DEI practices and their potential risks: 1. High-Risk Rating: Constellation has been rated as a “High Risk” company by the 1792 Exchange, an organization that assesses corporate policies for potential bias or discriminatory practices. This rating signals heightened exposure to reputational and legal risks stemming from DEI initiatives that may prioritize ideological goals over meritocratic principles or f inancial prudence.1 2. Perfect Score on Human Rights Campaign’s Corporate Equality Index (CEI): Constellation’s 100% score on the CEI may reflect policies that prioritize external validation over measurable business outcomes, potentially leading to inefficiencies or misaligned resource allocation.2 3. Employee Resource Groups (ERGs) Based on Race: Constellation maintains ERGs that explicitly categorize employees by race. This structure risks fostering division rather than unity and may expose the company to legal challenges for discriminatory practices.3 4. Opaque “Journey to Belonging” Training: Constellation’s “Journey to Belonging” training apparently lacks transparent public disclosure of its content. Without clear insight into the materials or their objectives, shareholders cannot assess whether these initiatives deliver tangible value or inadvertently contribute to workplace polarization, legal risks, or reputational harm.4 The requested report will help ensure that all such programs are evaluated for their financial impact and risk exposure. This includes assessing opportunity costs and potential liabilities from litigation or public backlash due to perceived or actual discrimination under the guise of inclusion. The scope of the report also includes potentially superficial rebranding (e.g., using terms like “respect” or “belonging”) from evading scrutiny, ensuring consistent accountability. This proposal does require elimination of DEI initiatives but rather seeks to ensure they are aligned with Constellation’s fiduciary duties. Rigorous oversight will ensure that investments in DEI are justified by measurable benefits and mitigate risks of legal or reputational harm. We urge shareholders to support this proposal to safeguard Constellation’s financial stability and reputation. 1 https://1792exchange.com/pdf/?c_id=35159 2 https://www.hrc.org/resources/corporations/constellation-energy-corporation 3 https://jobs.constellationenergy.com/Our-Culture-of-Respect-Belonging-Diversity-Inclusion 4 https://www.constellationenergy.com/our-company/what-we-stand-for/our-people-our-culture-our-communities.html

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