Tell Dimensional Fund Advisors to hold companies accountable and demand that they disclose their political activity.

Dimensional Fund Advisors has not supported a single shareholder proposal calling for disclosure of political activity, while peers like Morgan Stanley and AllianceBernstein supported 100% in 2018.[1] Even Dimensional Fund Advisors’ sustainability and socially responsible mutual funds did not support political spending disclosure resolutions in 2018 [2], despite its policy that “For sustainability-focused funds, Dimensional may support shareholder proposals aimed at enhancing the disclosure around certain environmental issues.”[3]

Reckless political activity can have a real impact on shareholder value. When companies play in politics, they risk public backlash or perceptions of being untrustworthy or corrupt. It’s no surprise then that 88 percent of both Democratic and Republican primary voters agree that corporations should be required to disclose their political spending.[4]

Dimensional Fund Advisors has signed onto the United Nations Principles for Responsible Investment (PRI), committing to upholding six principles of sustainable investing, including the principle to “support shareholder initiatives and resolutions promoting ESG disclosure.”[5] Corporate spending in politics clearly falls under this category.

Big Oil companies are not the only ones from which Dimensional Fund Advisors should be demanding better disclosure. Other companies facing requests from shareholders to disclose their political activity include Tyson Foods, Disney, Verizon Wireless, Ford Motor Company, and General Motors.

As a steward of its clients’ investments across the stock market, it’s critical that Dimensional Fund Advisors ensure that all companies in its portfolio are appropriately disclosing political spending.

Tell Dimensional Fund Advisors to use its voting power, amassed from its clients’ investment dollars, to support political activity disclosure at all its companies.

[1] https://politicalaccountability.net/hifi/files/reports/cpa-reports/CPA_-_Mutual_Fund_Proxy_Voting_Analysis_-_2018.pdf

[2] https://us.dimensional.com/about-us/corporate-governance

[3] https://eu.dimensional.com/en/stewardship-code

[4] https://mayday.us/data/20150925_dem_polling_results.pdf

[5] https://www.unpri.org/about-the-pri/what-are-the-principles-for-responsible-investment/323.article

Tell Vanguard to hold companies accountable and demand that they disclose their political activity.

Vanguard didn’t support a single political spending disclosure shareholder resolution in 2018, while peers like Morgan Stanley and AllianceBernstein supported all 18 of them.[1]

Reckless political activity can have a real impact on shareholder value. When companies play in politics, they risk public backlash or perceptions of being untrustworthy or corrupt. It’s no surprise then that 88 percent of both Democratic and Republican primary voters agree that corporations should be required to disclose their political spending.[2]

Vanguard has signed onto the United Nations Principles for Responsible Investment (PRI), committing to upholding six principles of sustainable investing, including the principle to “support shareholder initiatives and resolutions promoting ESG disclosure.”[3] Corporate spending in politics clearly falls under this category.

Vanguard’s Fund Treasurer, Glenn Booraem, claims that Vanguard typically abstains from voting on resolutions where “sufficient impact on shareholder value had not been established.” However, without political spending disclosure it is impossible to evaluate the full effects of political spending on shareholder value.[4]

Big Oil companies are not the only companies from which Vanguard should be demanding better disclosure. Other companies facing requests from shareholders to disclose their political activity include Tyson Foods, Disney, Verizon Wireless, Ford Motor Company, and General Motors.

As a steward of its clients’ investments across the stock market, it’s critical that Vanguard ensure that all companies in its portfolio are appropriately disclosing political spending.

Tell Vanguard to use its voting power, amassed from its clients’ investment dollars, to support political activity disclosure at all its companies.

[1] https://politicalaccountability.net/hifi/files/reports/cpa-reports/CPA_-_Mutual_Fund_Proxy_Voting_Analysis_-_2018.pdf

[2] https://mayday.us/data/20150925_dem_polling_results.pdf

[3] https://www.unpri.org/about-the-pri/what-are-the-principles-for-responsible-investment/323.article

[4] https://citizenvox.org/2016/02/29/corporate-reform-coalition-response-to-vanguards-glenn-booraems-letter-on-proxy-voting/

Tell BlackRock to hold companies accountable and demand that they disclose their political activity.

As the largest money manager in the world, BlackRock has sway over big companies, yet it allows fossil fuel companies to continue hiding behind industry groups and third-party lobbyist. BlackRock only supported 5% of political spending disclosure shareholder resolutions in 2018, while peers like Morgan Stanley and AllianceBernstein supported 100%.[1]

Reckless political activity can have a real impact on shareholder value. BlackRock acknowledges that “[Political] activities can create risks, including: the potential for allegations of corruption; the potential for reputational issues associated with a candidate, party, or issue; and risks that arise from the complex legal, regulatory, and compliance considerations associated with corporate political activity.”[2] It’s no surprise then that 88 percent of both Democratic and Republican primary voters agree that corporations should be required to disclose their political spending.[3]

BlackRock has signed onto the United Nations Principles for Responsible Investment (PRI), committing to upholding six principles of sustainable investing, including the principle to “support shareholder initiatives and resolutions promoting ESG disclosure.”[4] Corporate spending in politics clearly falls under this category. BlackRock also pledges to vote in shareholders’ best interests and protect them from risk. Without political spending disclosure, it is impossible to evaluate the risk shareholders face.

Big Oil companies are not the only companies from which BlackRock should be demanding better disclosure. Other companies facing requests from shareholders to disclose their political activity include Tyson Foods, Disney, Verizon Wireless, Ford Motor Company, and General Motors. In fact, BlackRock itself is among numerous companies whose shareholders have filed proposals requesting more transparency on lobbying activity.

BlackRock states that any company that engages in political activities should develop and maintain robust standards to reduce associated risks. Now, as a steward of its clients’ investments across the stock market, it’s critical that BlackRock follow through on this guidance and ensure that all companies in its portfolio are appropriately disclosing political spending.

Tell BlackRock to use its voting power, amassed from its clients’ investment dollars, to support political activity disclosure at all its companies.

[1] https://politicalaccountability.net/hifi/files/reports/cpa-reports/CPA_-_Mutual_Fund_Proxy_Voting_Analysis_-_2018.pdf

[2] https://www.blackrock.com/corporate/literature/fact-sheet/blk-responsible-investment-guidelines-us.pdf

[3] https://mayday.us/data/20150925_dem_polling_results.pdf

[4] https://www.unpri.org/about-the-pri/what-are-the-principles-for-responsible-investment/323.article

Tell State Street to hold companies accountable and demand that they disclose their political activity.

While State Street supported over 50% of political spending resolutions in 2017, it decreased its support to 39% in 2018. We applaud State Street for leading among the biggest mutual fund managers (BlackRock, Vanguard, and Fidelity), but urge it to go further to meet peers like Morgan Stanley and AllianceBernstein, which supported 100% of political spending disclosure resolutions in 2018.[1]

Reckless political activity can have a real impact on shareholder value. When companies play in politics, they risk public backlash or perceptions of being untrustworthy or corrupt. It’s no surprise then that 88 percent of both Democratic and Republican primary voters agree that corporations should be required to disclose their political spending.[2]

State Street has signed onto the United Nations Principles for Responsible Investment (PRI), committing to upholding six principles of sustainable investing, including the principle to “support shareholder initiatives and resolutions promoting ESG disclosure.”[3] Corporate spending in politics clearly falls under this category.

Big Oil companies are not the only companies from which State Street should be demanding better disclosure. Other companies facing requests from shareholders to disclose their political activity include Tyson Foods, Disney, Verizon Wireless, Ford Motor Company, and General Motors.

State Street encourages companies to be transparent about the environmental and social risks and opportunities they face and to adopt robust policies and processes to manage such issues.[4] As such, we encourage State Street to follow through by ensuring that all companies in its portfolio are appropriately disclosing political spending.

Tell State Street to use its voting power, amassed from its clients’ investment dollars, to support political activity disclosure at all its companies.

[1] https://politicalaccountability.net/hifi/files/reports/cpa-reports/CPA_-_Mutual_Fund_Proxy_Voting_Analysis_-_2018.pdf

[2] https://mayday.us/data/20150925_dem_polling_results.pdf

[3] https://www.unpri.org/about-the-pri/what-are-the-principles-for-responsible-investment/323.article

[4] https://www.ssga.com/investment-topics/environmental-social-governance/2018/03/Proxy-Voting-and-Engagement-Guidelines-NA-20180301.pdf

Tell Fidelity to hold companies accountable and demand that they disclose their political activity.

Fidelity does not even reference political spending disclosure in its proxy voting guidelines, and its voting record confirms its lack of attention.[1] Fidelity has not supported a single shareholder proposal calling for disclosure of political activity, while peers like Morgan Stanley and AllianceBernstein supported 100% in 2018.[2]

Reckless political activity can have a real impact on shareholder value. When companies play in politics, they risk public backlash or perceptions of being untrustworthy or corrupt. It’s no surprise then that 88 percent of both Democratic and Republican primary voters agree that corporations should be required to disclose their political spending.[3]

Fidelity has signed onto the United Nations Principles for Responsible Investment (PRI), committing to upholding six principles of sustainable investing, including the principle to “support shareholder initiatives and resolutions promoting ESG disclosure.”[4] Corporate spending in politics clearly falls under this category.

Big Oil companies are not the only ones from which Fidelity should be demanding better disclosure. Other companies facing requests from shareholders to disclose their political activity include Tyson Foods, Disney, Verizon Wireless, Ford Motor Company, and General Motors.

As a steward of its clients’ investments across the stock market, it’s critical that Fidelity ensure that all companies in its portfolio are appropriately disclosing political spending.

Tell Fidelity to use its voting power, amassed from its clients’ investment dollars, to support political activity disclosure at all its companies.

[1] https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/Full-Proxy-Voting-Guidelines-for-Fidelity-Funds-Advised-by-FMRCo-and-SelectCo.pdf

[2] https://politicalaccountability.net/hifi/files/reports/cpa-reports/CPA_-_Mutual_Fund_Proxy_Voting_Analysis_-_2018.pdf

[3] https://mayday.us/data/20150925_dem_polling_results.pdf

[4] https://www.unpri.org/about-the-pri/what-are-the-principles-for-responsible-investment/323.article