June 16, 2021
Dear Corporate Director:
As institutional investors, State Treasurers, or as elected and appointed fiduciaries and trustees of public funds and retirement savings with assets under management of approximately $1.5 trillion, we are concerned with the erosion of political stability in the United States. A functioning democracy is foundational to a stable economy and sustainable long-term value creation. We believe that the events of January 6, 2021 and the subsequent state-level efforts to undermine voting rights and access add greater urgency to concerns and expectations regarding corporate political spending and lobbying transparency and practices. In light of reports that our company has recently been a contributor to elected officials that opposed the certification of the electoral college results, state-level elected officials supporting restrictions on voting rights, or both, we request immediate disclosure of whether and how you will be updating our company’s political spending policies to preclude any corporate political donations to legislators that back such efforts.
We are facing an existential threat to the election system in the U.S. which poses substantial systemic risk to long-term investors’ portfolios. This is not a question of partisan politics -- many Democrats and Republicans have opposed contemporary attacks on the functioning of American democracy -- but of ensuring voter participation and enfranchisement. The question for corporations is whether to continue operating under “business as usual” assumptions or recognize this threat and take action.
The nonpartisan Brennan Center for Justice has identified 361 bills in 47 states that contain provisions to restrict the right to vote as of March 24, 2021. These bills limit absentee and early voting, seek stricter voter ID requirements, make voter registration more difficult, and undermine the power of local officials to fairly administer elections. Similarly, the Voting Rights Lab, also a nonpartisan organization, has identified 405 bills in 45 states that it considers to have “anti-voter” provisions, including restrictions on absentee and early voting, voter registration, and strict voter ID laws.
Many of these voting restrictions would disproportionately affect Black voters and other communities of color, adding another chapter to a long history of voter disenfranchisement in the U.S. As long-term investors, we recognize that systemic racism creates material portfolio-wide and company-specific risks for investors. Analysis from Citigroup shows that failure to address racial wealth gaps in wages, housing, and investment cost the U.S. economy $16 trillion over the last 20 years.
We are further concerned with the substantial reputational risks companies face through their political spending policies and practices. In the wake of the murder of George Floyd last year, many companies made public statements affirming the view that Black Lives Matter and acknowledging the existence of systemic racism and pledging to address it. Company actions that contradict stated positions create substantial risks and raise concerns about the adequacy of governance and oversight of these issues. Alienating a significant portion of the company’s employees and consumer base by supporting elected officials driving legislation that would lead to mass disenfranchisement of voters of color is not a sound or sustainable business strategy.
In recent months, many companies have made public statements in support of voting rights. However, such statements alone will not mitigate the harm of voter disenfranchisement legislation or the reputational risks to the company arising from these contradictions between a company’s stated positions and its political spending practices. Civil rights and racial justice activists are increasingly calling on corporations to cease support for elected officials promoting voter suppression. In an open letter to asset managers in the Financial Times, more than 140 racial justice leaders and allies called on shareholders to fundamentally overhaul their stewardship of companies to challenge systemic racism and white supremacy in corporate governance and behavior, including in relation to political spending.
As Chair of the relevant Committee of the board, you are responsible for ensuring oversight of our company’s policy influence activities. To mitigate the systemic risks of these anti-democratic efforts and the company-specific risks of continuing to support restrictions on the right to vote, we are calling on you to, at a minimum:
Amend our company’s political contributions policy to preclude any direct or indirect contributions from the company, its subsidiaries, or affiliated Political Action Committees to any candidates, or campaign committees that support such candidates, that have attempted to restrict the right, impede access to vote, or otherwise disenfranchise or limit the civil rights of communities of color, including:
a. Federal elected officials that voted to object to the certification of the electoral college results on January 6, 2021; and
b. Sponsors and authors of legislation at the state level that seek to restrict voting rights or access, as identified by the Brennan Center for Justice or Voting Rights Lab.
- Provide full public disclosure of the recipient and amount of all direct and indirect election-related spending using corporate or treasury funds, or by corporate PACs, including donations to candidates and party committees at the state and local level, contributions to 527 political committees, ballot measure committees, independent expenditures, and payments to politically-active trade associations and politically-active tax-exempt organizations, including 501c4s.
The onus is now on the board to comprehensively reassess our company’s corporate-directed political spending policies, practices and risks. Given our concerns about the risks for our company detailed in this correspondence and our fiduciary responsibility, we are expecting to see an immediate response. Should you wish to discuss the actions you are taking with us, please contact Renaye Manley (renaye.manley@seiu.org) or Lisa Lindsley (lisa@majorityact.org).
We look forward to receiving your response.
Sincerely,
Signers
Renee Morgan, Adasina Social Capital
Fabian Willskytt, Align Impact
Ambassador Doug Hickey, Hickey Gryphon Equity Partners*
Jeffrey Haggray, American Baptist Home Mission Society
Patricia Bauman, Bauman Foundation
Lauren Compere, Boston Common Asset Management
Betty Francisco, Boston Impact Initiative Fund
State Controller, Betty Yee, California State Controller’s Office
Ramon Rubalcava, CalPERS*
Theresa Taylor, CalPERS*
Dorrit Lowsen, Change Finance
Dan Kirslis, Chicory Wealth
Gary Kidwell, Christian Church Foundation
Molly Betournay, Clean Yield Asset Management
Dave Young, Colorado State Treasurer*
Michaela Cocchi, Comitato Lady Lawyer Village
Rob Fohr, Committee on Mission Responsibility Through Investment of the Presbyterian Church
Shawn Wooden, Connecticut State Treasurer
James McRitchie, CorpGov.net
Robert Wotypka, Corporate Responsibility Agent, Province of Saint Joseph of the Capuchin Order
Sister Teresa George, Daughters of Charity Ministries, Inc.
Colleen Davis, Delaware State Treasurer*
Corey Klemmer, Domini Impact Investments
Mary Brigid Clingman, Dominican Sisters of Grand Rapids, MI
Eileen Gannon, Dominican Sisters of Sparkill, NY
Steve Zielinski, Dominican Sisters of Springfield, IL
Sarah Green, Farm Girl Capital, LLC
Lisette Cooper, Fiduciary Trust International*
Ahmed Aljuboori, Figure 8 Investment strategies
Sister Gloria Oehl, Franciscan Sisters of Allegany, NY
Sue Ernster, Franciscan Sisters of Perpetual Adoration*
Riley Talford, Fresno County Employees Retirement Association*
Amy Carr, Friends Fiduciary Corporation
Keith Beverly, GRID 202 Partners
John Harrington, Harrington Investments, Inc.
Theodosia Hamilton Ferguson, Healing Living Systems, Inc.
Gregory Simpson, Hudson River Presbytery*
Susan Ozawa Perez, Impact Investors
Joseph Keefe, Impax Asset Management, LLC
Josh Zinner, Interfaith Center on Corporate Responsibility
Mary Beth Gallagher, Investor Advocates for Social Justice
Samer Yousif, Investors of Color Network
Janet Peterworth, Ursuline Sisters of Louisville, KY*
Mary Baudouin, Jesuits of the US Central and Southern Province
Julie Hammerman, JLens
Andrew Shapiro, Lawndale Capital Management
Margaret Chapman, Leadership Council of IHM Sisters
Elizabeth Greenwood, Los Angeles County Employees Retirement Association (LACERA)*
Vivian Gray, Los Angeles County Employees Retirement Association (LACERA)*
David Green, Los Angeles County Employees Retirement Association (LACERA)*
Herman Santos, Los Angeles County Employees Retirement Association (LACERA)*
Henry Beck, Maine State Treasurer*
Carmen Rojas, Marguerite Casey Foundation
Reverend Joseph La Mar, Maryknoll Fathers and Brothers
Cathy Rowan, Maryknoll Sisters
Douglas Prouty, Maryland State Retirement and Pension System*
Theresa McGoldrick, Mass PRIM*
Luan Jenifer, Miller/Howard Investments, Inc.
Susanna Gibbons, Minnesota State Board of Investment*
Seamus Finn, Missionary Oblates/OIP TRUST
Verna Thompson, Municipal Employees' Annuity and Benefit Fund of Chicago*
Laura Campos, Nathan Cummings Foundation
Michael Kramer, Natural Investments
Michaela Gregory, NEI Investments
Bruce Herbert, Newground Social Investment
Mari Schwartzer, NorthStar Asset Management, Inc.
Judy Byron, Northwest Coalition for Responsible Investment
Carole Nugent, Nugent Properties*
Michael Kraft, NYC Board of Education Retirement Systems (BERS)*
ThomasSheppard, NYC Board of Education Retirement Systems (BERS)*
John Russell, Oregon Investment Council*
Irit Tamir, Oxfam America
Reverend Dr. Todd Adams, Pension Fund of the Christian Church
Michael Passoff, Proxy Impact
Michael Kimmel, Reform Pension Board
Jo Marie Chrosniak, Region VI Coalition for Responsible Investment
Maria Egan, Reynders, McVeigh Capital Management LLC
Seth Magaziner, Rhode Island State Treasury
Sancia Dalley, Robert F. Kennedy Human Rights
Lorin Silverman, SC Group
Ethel Howley, School Sisters of Notre Dame Cooperative Investment Fund
Tim Dewane, School Sisters of Notre Dame of Central Pacific Province
David Huerta, SEIU National Industry Pension Plan*
Mark Sharwood, SEIU National Industry Pension Plan*
T. Steven Jones, Seva Foundation
Anthony Schein, SHARE
Richard Togerson, SharePower Responsible Investing
Christopher Soulios, Signet Strategic Wealth
Mary Dugan, Sisters of Charity of Cincinnati, OH*
Sister Barbara Aires, Sisters of Charity of Saint Elizabeth, NJ
Ann Kasperek, Sisters of Mary Reparatrix
Sister Colleen Dauerbach, Sisters of Saint Joseph of Chestnut Hill, PA
Mary Ann Weyker, Sisters of St. Dominic*
Sister Joan Agro, Sisters of St. Dominic of Blauvelt, NY
Sister Patricia Daly, Sisters of St. Dominic of Caldwell, NJ
Nora Nash, Sisters of St. Francis of Philadelphia, PA
Betty Cawley, Sisters of St. Joseph of Boston, MA
Denise Granger, Sisters of St. Joseph of Springfield, MA
Veronique Wiedower, Sisters of the Holy Cross
Toby Lardie, Sisters of the Humility of Mary
Linda Pleiman, Sisters of the Precious Blood
Sister Pegge Boehm, Sisters of the Presentation of the BVM of Aberdeen SD
Claire Deroche, Social Justice Committee, Unitarian Universalist Congregation at Shelter Rock
Anna Falkenberg, Socially Responsible Investment Coalition*
Molly Gochman, Stardust
Deborah Perry Piscione, Sterling Ventures
Julie Skye, Sustainable Advisors Alliance LLC
Regan Pritzker, Tao Capital*
Ruth Shaber, Tara Health Foundation
Kurt Barnes, The Episcopal Church (DFMS)
Crystal Hayling, The Libra Foundation
Richard Walters, The Pension Boards, UCC, Inc.
Allan Moskowitz, Transformative Wealth Management, LLC
Jonas Kron, Trillium Asset Management
Cathy Rowan, Trinity Health
Andrew McGeorge, Unitarian Universalist Association
Matthew Illian, United Church Funds
Sister Sandra Sherman, Ursuline Convent of the Sacred Heart
Janet Peterworth, Ursuline Sisters of Louisville, KY*
Stephanie Cohn Rupp, Veris Wealth Partners
Elizabeth Pearce, Vermont Pension Investment Committee and Vermont State Treasurer*
Ellen Dorsey, Wallace Global Fund
Lauren Martin, Wealthspire Advisors*
Ian Fuller, WestFuller Advisors
David Addams, William Caspar Graustein Memorial Fund
Marcela Pinilla, Zevin Asset Management
Corporate Donors to Voter Suppression Efforts that received investor coalition letter
Abbott Laboratories
Aflac Incorporated
Allstate Corporation
Alphabet Inc.
Altria Group, Inc.
Amazon.com, Inc.
Ameren Corporation
American Electric Power
Anthem, Inc.
AT&T Inc.
Berkshire Hathaway Inc.
Boeing Company
Bristol-Myers Squibb Company
Capital One Financial Corporation
Carmax, Inc.
Caterpillar Inc.
Centene Corporation
CenterPoint Energy, Inc.
Charter Communications, Inc.
Chevron Corporation
Cigna Corporation
Citigroup Inc.
CMS Energy Corporation
Coca-Cola Company
Comcast Corporation
Comerica Incorporated
CSX Corporation
CVS Health Corporation
Deere & Company
Delta Air Lines, Inc.
Dominion Energy, Inc.
DTE Energy Company
Duke Energy Corporation
Eli Lilly and Company
Exelon Corporation
Exxon Mobil Corporation
Facebook, Inc.
Fedex Corporation
Ford Motor Company
Freeport-McMoRan Inc.
General Dynamics Corporation
General Electric Company
General Motors Company
GEO Group, Inc.
HCA Healthcare, Inc.
Home Depot, Inc.
Honeywell International Inc.
Humana Inc.
International Paper Company
Intuit Inc.
Johnson & Johnson
Lockheed Martin Corporation
Lowe's Companies, Inc.
Lumen Technologies, Inc.
Marathon Petroleum Corporation
Merck & Co., Inc.
Micron Technology, Inc.
Microsoft Corporation
Morgan Stanley
NiSource Inc.
Norfolk Southern Corporation
Northrop Grumman Corporation
Pfizer Inc.
Pinnacle West Capital Corporation
Prudential Financial, Inc.
Raytheon Technologies Corporation
Republic Services, Inc.
Southern Company
Sysco Corporation
T-Mobile US, Inc.
Truist Financial Corporation
Union Pacific Corporation
United Airlines Holdings, Inc.
United Parcel Service, Inc.
UnitedHealth Group Incorporated
Valero Energy Corporation
Verizon Communications Inc.
Walgreens Boots Alliance, Inc.
Walmart Inc.
Walt Disney Company
Waste Management, Inc.
Wells Fargo & Company