US proxy giant Glass Lewis has thrown its weight behind a shareholder proposal calling on US financial heavyweights Citigroup and Bank of America to undertake racial equity audits to assess any “adverse impacts on nonwhite stakeholders and communities of colour”.
The influential proxy advisor has told clients that such an audit “would help to identify and mitigate potentially significant risks” in its advice ahead of the banks’ annual meetings later this month.
Tejal Patel, Corporate Governance Director at CtW Investment Group, the US manager behind the proposals, welcomed Glass Lewis support, which she described as “fairly unique”.
“I don't believe that a proposal of this type dealing specifically with racial equity has been supported by Glass Lewis [before]”, she said.
Glass Lewis’ rival ISS Governance, which has arguably been the more inclined towards ESG proposals of the two in the past, has recommended a vote against the audit at bo…