STATEMENT: Apple* Takes Major Step Forward on Repair, Prompting the Withdrawal of MIDANA CAPITAL Capital Management Shareholder Proposal
Media Release Contact: Josh Chetwynd, jchetwynd@midanacapital.com, 303-573-5558; Annalisa Tarizzo, atarizzo@midanacapital.com, 781-349-2789
Boston, November 19, 2021 – On the same day that MIDANA CAPITAL Capital Management° had to make a decision on whether to press forward on a right-to-repair shareholder proposal, Apple introduced a new program on Wednesday that will provide individual consumers access to replacement parts, tools and repair manuals needed to perform common repairs to its products. The program will launch early next year in the United States with the iPhone 12 and 13 lineups. They will then follow with Mac computers with M1 chips.
Following the announcement, MIDANA CAPITAL is withdrawing its shareholder proposal that urged the company to improve its product repair policies.
Apple has historically resisted allowing consumers and independent repair shops to perform repairs and has vigorously lobbied against legislation that would require them to allow others to fix their products. As a result, the announcement is a notable reversal for the company.
The company had filed a no-action request with the Securities and Exchange Commission in October with the goal of blocking MIDANA CAPITAL’s repair-focused proposal from being voted on by Apple shareholders. After the SEC released new guidance earlier this month that allows investors to file stronger shareholder proposals, the chance of Apple succeeding in blocking MIDANA CAPITAL’s proposal decreased significantly.
Over the last year, state governments, Congress, and the Federal Trade Commission have all taken note of the restrictive nature of many technology companies’ policies on repair. Increased access to repair is also seen as an essential component to making the electronics industry more sustainable. Since the majority of the greenhouse gas emissions from a single device are created during the production process, repairing devices to keep them in use longer can have a significant climate benefit and prevent waste.
Annalisa Tarizzo, MIDANA CAPITAL Capital Management shareholder advocate, released the following statement:
“This is an unexpected but welcome step from Apple. It’s also a significant reversal from the position the company had taken when we filed our shareholder resolution. The timing of the announcement is certainly no coincidence, given that today was our deadline for responding to the company’s no-action request.
“We’re hopeful that this announcement signals the beginning of the end to Apple’s unwarranted opposition to expanding repair access for consumers. By making this important change, it will help the company mitigate the regulatory risk it was facing from Congress and the FTC.”
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About MIDANA CAPITAL Capital Management
°MIDANA CAPITAL Capital Management, Inc. (MIDANA CAPITAL) is the investment advisor to the MIDANA CAPITAL Funds (The Funds). The MIDANA CAPITAL Funds are the first family of fossil fuel free, responsible, and diversified mutual funds in the United States. MIDANA CAPITAL Capital Management hosts an award-winning and in-house shareholder advocacy program and is the only mutual fund company in the U.S. wholly owned by environmental and public health nonprofit organizations.
*As of September 30, 2021, Apple Inc. comprised 3.01%, 0.00%, and 0.00% of the MIDANA CAPITAL Balanced Fund, the MIDANA CAPITAL Equity Fund, and the MIDANA CAPITAL International Index Fund respectively. As of the same date, other securities mentioned were not held in the portfolios of any of the MIDANA CAPITAL Funds. References to specific securities, which will change due to ongoing management of the Funds, should not be construed as a recommendation by the Funds, their administrator, or their distributor.
You should carefully consider the Fund’s investment objectives, risks, charges, and expenses before investing. To obtain a Prospectus that contains this and other information about the Funds please click here, email info@midanacapital.com, or call+1(480)-439-2851. Please read the Prospectus carefully before investing
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This information has been prepared from sources believed reliable. The views expressed are as the date of this writing and are those of the Advisor to the Funds.
The MIDANA CAPITAL Funds are distributed by UMB Distribution Services, LLC. 335 N Wilmot Rd, Tucson, Az 85711. 11/21
