Thanks to Sr. Ruth Schaaf, O.P. who sent this headline our way: Nun Funds: The Original Impact Investors. The article recounts the origins of what we know today as impact investing. Reading the article, one can only come away impressed with these women who have invested and multiplied the talents (Matthew 25:14–30).
When we saw a recent article (Wisconsin groups to get $12M settlement for natural gas price fixing) from the La Crosse Tribune quoting Sr. Sue Ernster, FSPA, we wanted to bring it to the attention of our SGI members. Sr. Sue adds:
FSPA participated in the lawsuit of the manipulation of natural gas pricing by multiple utilities as another way of how we live out our social justice activities and our values. We see this as an effort to help those whose voices are not represented in this and other situations. We are utilizing the resources we have at our disposal to hold those accountable who were responsible for this price manipulation.
Our hope is that participating in litigation settlements such as these, as well as filing shareholder resolutions with companies, demonstrates that people are paying attention, asking questions and holding them accountable for their actions.
The Interfaith Center for Corporate Responsibility, with signatures from SGI and 12 of its individual members, sent a letter to the leaders of Congress advocating for “Congress to allow TPS holders to remain in the country and pursue a path to naturalization.”
TPS, temporary protected status, established by Congress in the Immigration Act of 1990, is humanitarian program whose basic principle is that the United States should suspend deportations to countries that have been destabilized by war or catastrophe.
There are approximately 195,000 Salvadorans, 50,000 Haitians, and 2,550 Nicaraguans who are current beneficiaries of TPS status. In addition, there are 5,800 Syrian, 8,950 Nepali, and 57,000 Honduran TPS holders in the United States today. Of the total 10 countries with current TPS designations, approximately 330,000 people (or, adults and children) benefit from TPS. Many have resided in the U.S. for a significant period of time. For instance, more than one-half of El Salvadoran and Honduran, and 16 percent of the Haitian TPS beneficiaries have resided in the U.S. for 20 years or more.
Thanks to our members who individually signed on. May this week have fruitful in deliberations in the U.S. Senate. Again, to read the letter, please visit here.
As requested by members, we will host our next webinar on shareholder engagement in immigration on Friday, February 16th at 10 a.m. (Central time). The webinar will last 90 minutes.
- Review our values and commitments on immigration
- Assess the state of play on policy
- Highlight what some allies are doing
- Encourage deeper investor engagement with our companies around concerns on immigration (e.g., the shareholder letter to JPMorgan Chase concerning investment in private prisons and immigration detention centers)
Feel free to share this invitation with people within your network. For how to join the webinar, please, contact Christopher Cox, our associate director at firstname.lastname@example.org.
We also see many governments failing to prepare for the future, on issues ranging from retirement and infrastructure to automation and worker retraining. As a result, society increasingly is turning to the private sector and asking that companies respond to broader societal challenges. Indeed, the public expectations of your company have never been greater. Society is demanding that companies, both public and private, serve a social purpose. To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society.
In the letter, Fink calls on companies to proactively manage environmental, social, and governance matters through deeper board and investor engagement and thoughtful strategy development. Companies, Fink suggests, should act as stewards for all their stakeholders – including employees, customers, and communities.
Public response to the letter has been mixed. While some find a billionaire’s plan to combat inequality to be ironic, hypocritical, and hollow, many, including us here at SGI, hope this call-to-action will have effect.
BlackRock, the world’s largest asset manager with $5.7 trillion in assets under management as of July 2017 (or, put another way, 20% of the U.S. market), is a significant shareholder in all the largest companies, for better or worse. As Bloomberg’s Matt Levine noted:
Pick your least favorite public company — guns or tobacco or oil or opioids or Facebook or whatever you think is doing the most harm to society — and BlackRock Inc. is among the top five holders. Fink’s threat — contribute to society or you’ll lose BlackRock’s support — rings a bit hollow since BlackRock’s index funds can’t sell. (They can vote against directors, sure, but what exactly do you want a gun maker’s directors to do?)
Aside from supporting the ICCR proposal to enhance Exxon Mobile’s climate disclosures, BlackRock has avoided shareholder advocacy in the past. If BlackRock genuinely engages, it has an opportunity to dramatically move the needle in favor of corporate social responsibility.
Statement endorsed by 147 investors representing $3.7 trillion appeals to global brands to recommit to three-year extension to fulfill Accord’s mandate to remediate fire and safety violations in apparel sector.
Members of the Bangladesh Investor Initiative issued a statement today calling on companies sourcing from the Bangladesh apparel sector to renew their commitment to protect worker health and safety by endorsing the three-year extension of the Accord on Fire and Building Safety in Bangladesh (Accord).
The investors, including Seventh Generation Interfaith Coalition for Responsible Investment and its members, say additional time is needed to complete the remediation plans and worker training indicated by audits at the over 1,600 factories covered by the Accord. The statement will accompany letters being sent to the 160 companies that have not yet become signatories to the three-year extension of the Accord, urging them to participate.
The investors are part of the Bangladesh Investor Initiative organized by the Interfaith Center on Corporate Responsibility to press brands and retailers sourcing in Bangladesh to join the Accord and remediate human rights risks in their supply chains. The statement was endorsed by 147 institutional investors that collectively represent $3.7 trillion in managed assets.
Said Henrike Kulmann of Allianz Global Investors GmbH, “The new agreement between global trade unions and companies ensures that the industry continues to remediate safety issues found in garment factories and build effective worker safety committees. They are an important component to mitigating risks to workers and supply chain disruption as well as reputational risks to global brands sourcing in Bangladesh. We call on all companies sourcing from Bangladesh to become Accord signatories to mitigate these serious human rights and business risks.”
For the 1,600 factories have been inspected under the Accord, 82 percent of the identified safety issues have been fixed, the majority of them electrical. “Investors have been particularly pleased to see that, in addition to fixing specific problems, the Accord has worked to address the systemic issues that led to disasters like Rana Plaza,” said Lauren Compere of Boston Common Asset Management, “It is critical to ensure that future safety problems are detected before they become life-threatening events. The detailed comprehensive work achieved by the Accord is a positive signal to investors that safety risks are being carefully and sustainably managed.”
The investor statement recommends brands undertake the following:
- Accord companies, who have yet to sign the 2018 Accord, do so during the first Quarter of this year.
- Companies that were part of the Alliance, which is disbanding in 2018, join the Accord and therefore maximize collective leverage to complete safety reforms and strengthen action to build the capacity of the Bangladesh government’s oversight of worker safety by 2021.
- Brands and retailers sourcing in the garment sector expand safety inspections to knitting, spinning & weaving; washing, dyeing & printing facilities; embroidery & accessories; home textiles; leather and footwear.
- Brands, retailers and other stakeholders strengthen the National Tripartite Plan of Action on Fire Safety and Structural Integrity in Bangladesh’s garment sector to ensure an integrated approach to promoting fire safety and building integrity, and to provide a platform for stakeholders engaged in fire safety initiatives.
“To date, only 60 of the 220 signatories of the Accord have signed the new agreement to extend the program until May 2021,” stated David Schilling, senior program director of ICCR. “While much has been achieved in making garment factories in Bangladesh safer, there is more to be done, including the establishment of worker safety committees in each factory. The success of the Accord to date is built on the unprecedented collective action of brands and trade unions. Continued solidarity is needed to finish the job and prevent hard-earned gains from disappearing.”
In a new series of posts, SGI will offer reviews and suggestions of books related to our work in shareholder advocacy.
For those who want an inspirational primer about shareholder advocacy, Andrew Behar’s The Shareholder Action Guide: Unleash Your Hidden Powers to Hold Corporations Accountable fits the bill. Replete with anecdotes and advice, coupled with references to on-line resources, this book explains the tools and strategies available to empower shareholders. Further, this handbook may well inspire new activist shareholders to demand corporate accountability.
The author leads As You Sow, a nonprofit organization that focuses on environmental and social corporate responsibility. As You Sow focuses on climate change, sustainability, human rights, and environmental health, and it engages, among others, companies like ExxonMobil, Chevron, Southern, FirstEnergy, Duke, Dow, DuPont, Monsanto, HP, Dell, Apple, Proctor & Gamble, and Coca-Cola.
In 15 brief chapters, Behar takes readers through the basics. The first seven chapters include: shareholder responsibilities, how shareholders began to use their power with General Motors in South Africa, defining some limits on shareholder actions, explaining proxy votes, influencing fund managers, and corporate engagements and filing shareholder resolutions. Chapter 8 of The Shareholder Action Guide also tells the story of many campaigns in shareholder advocacy from across the past forty years. It profiles leaders in shareholder advocacy, including a testament to the work of SGI’s founder, the late Fr. Mike Crosby, for his efforts in tobacco. Those involved with SGI will recognize the names of numerous allies referenced in the book, including Tim Smith and Sr. Nora Nash, O.S.F. Subsequent chapters contemporary strategies in shareholder advocacy .
Behar explores how corporations are the most powerful entities on the planet. Sadly, many have had a long record of failing to care for creation, exploiting vulnerable people, and hiding boardroom decision-making. Since, by law, corporations are beholden to their shareholders, some philanthropic trusts, pension funds, and other institutional investors have used shareholder advocacy to press for changes in corporate policy. Behar also underscores the opportunity to engage individual investors, who have largely been silent, mistakenly thinking themselves powerless. The Shareholder Action Guide is designed to inform, inspire, and instruct investors in how to exercise their power to effect meaningful change on critical issues including environmental justice, food sustainability, executive compensation, and worker’s rights. Owners of as little as $2,000 worth of stock in a publicly traded corporation have the power to be heard. This book is a call to action designed to build a movement of active investors. Behar illustrates how investors can stop abdicating their power and act to make a better world.