As investors continue to digest the ramifications of the January 6th US Capitol riots, 2021 is expected to be a “breakthrough season” for shareholding voting on corporate political spending.
“It is a large-scale systemic risk to long-term investors who depend on a functioning and inclusive electoral process for sustainable growth,” says Eli Kasargod-Staub, co-founder and executive director of Majority Action, an NGO focused on corporate accountability.
Companies are under particular pressure over their donations to US lawmakers who deny the results of the 2020 presidential election. In a recent project coordinated by Majority Action, more than 30 senior US state pension fund officials asked BlackRock, Vanguard, State Street, JP Morgan Asset Management and BNY Mellon to account for a collective $1m in donations to 147 “election objector” members of Congress since 2016.
The tipping point has come after nearly a decade of engagement by key …