Home
/
RELIGION & LIBERTY ONLINE
/
Religious Left Shareholder Activists Climb Aboard the Laudato Si Bandwagon
Religious Left Shareholder Activists Climb Aboard the Laudato Si Bandwagon
Jan 27, 2026 11:33 AM

The release last week of Pope Francis’ Laudato Si unleashed a heaven-rending chorus of hallelujahs from the religious left. The activist shareholder investors in the choir loft, those affiliated with the Interfaith Center for Corporate Responsibility, were no exception. No sooner had the ink dried on the paper on which the encyclical’s printed than ICCR members hauled out the hyperbole. For example:

Nora M Nash, OSF: Laudato Sii (Be Praised) will rise up and the cry of Mother Earth will be heard once again from the Amazon Rainforest to the Tiadaghton Forest; from Navidad Bianco Shanty Town in Mexico to Rana Plaza in Bangladesh; from the Great Mississippi to the Three Gorges Dam; from the oil fields of Alaska to mines of the Central African Republic. A new “Canticle of the Sun” will promote dynamic engagement across our fragile munity.

And this hubristic howler:

Zevin Asset Management: Zevin Asset Management is proud to be joined by Pope Francis in our focus on the urgency of climate change. The Papal Encyclical is evidence of the universal nature of the problem and we are hopeful it will inspire universal solutions. We anticipate that it will direct more investors to take up the issue of climate change solutions in their investment decisions.

To which this writer can only respond (sarcastically, of course): “Wow, the Pope is climbing aboard the Zevin bandwagon? Well, it’s about time!”

Sarcasm aside, it’s a shame if not a sin that Zevin and its ICCR cronies don’t recognize the harm caused by their shareholder activism. This writer has submitted ample word counts discussing the negative impact of ICCR resolutions on fellow investors, panies in which they invest and panies’ clientele. And, yes, this brand of shareholder activism also negatively impacts panies’ economic footprint in munities and states in which they operate.

es another Proxy Monitor report from the Manhattan Institute Center for Legal Policy’s James R. Copland, which bolsters your writer’s previous assertions with yet more empirical proof. Copland researched the shareholder proposals submitted by public employee unions, including California Public Employees’ Retirement System with $297 billion in assets; California State Teachers’ Retirement System ($187 billion); New York State Common Retirement Fund ($178 billion); New York City Retirement Systems ($159 billion); and Florida State Board of Administration ($155 billion). . Not surprisingly, the groups upon which Copland’s research focuses reflect the very same issues and points-of-view as ICCR (as well As You Sow, another religious group of shareholder activists):

Section I examines such funds’ shareholder-proposal activism, over time and by subject matter, as well as voting results. Section II looks at how their shareholder-proposal activism may have impacted subsequent share value in panies. The study concludes that these publicly traded pension funds’ shareholder-proposal activism did not tend to create share value; and that the New York State fund’s activism—which traces to 2010 under ptroller Thomas DiNapoli—has been negatively associated with subsequent share-price movement relative to the broader stock market.

Copland continues:

Just as public employee pension funds vary in their propensity to introduce shareholder proposals, they vary in the types of proposals introduced. Although most of the 2015 New York City pension funds’ shareholder proposals involve proxy access, a corporate-governance concern, most of the City funds’ proposals historically have involved social or policy issues…. 62 percent of the New York City funds’ shareholder activism over the last decade has involved social or policy concerns with an attenuated, if any, relationship to share value—a number deflated by this season’s proxy-access push. (While 14 percent of the shareholder proposals that New York City funds have introduced over the decade involve proxy access, 22 of the 23 proxy access proposals were filed in 2015.)

Copland notes the percentages of public-employee shareholder resolutions by topic: Lobbying and Political Spending (17 percent); Executive Compensation (14 percent); “Other Social Policy” (12 percent); and Environment (8 percent) for the years 2006 to 2015. As suspected, very few of these resolutions, if passed, would enhance shareholder value. In fact, he points out such resolutions harm shareholder value whether they are adopted or not.

Critics of pension funds’ shareholder activism worry that “unions and state and local governments whose interests in jobs may well be greater than their interest in share value, can be expected to pursue self-interested objectives rather than the goal of maximizing shareholder value”—a concern articulated by the U.S. Court of Appeals for the D.C. Circuit in 2011, when it threw out the Securities and Exchange Commission’s promulgated mandatory proxy access rule (one substantially similar to that currently being advanced by the New York City funds’ initiative). Perhaps owing to these concerns, the two largest mutual fund groups, Fidelity and Vanguard, have largely opposed the New York City funds’ proxy access proposals.

Indeed, the evidence does not support the public pension funds’ claims that their shareholder-proposal activism enhances share value: the Fortune panies targeted by shareholder proposals sponsored by the five largest state and municipal pension funds saw their share price, in the subsequent year, underperform the broader S&P 500 index (by 0.9 percent), with broad variations….

These findings substantially undercut the hypothesis that public pension funds’ shareholder-proposal activism adds to share value for the average diversified investor—and suggest such efforts may actually destroy value.

Likewise, one can draw the same conclusions for ICCR and AYS shareholder resolutions. Rather than congratulating themselves that Pope Francis shares their moral high ground regarding climate change and the incumbent belief human activity is causing it, ICCR and AYS might actually look at how their activities are harming shareholder values and their fellow investors.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Education and Incentives
I have written on several recent occasions about the role of incentives in education, both for teachers and for students (see here, here, and here). Yesterday, David Burkus, editor of LDRLB, wrote about a recent study by Harvard University economic researchers on the role of incentives in teacher performance. Interestingly, they found that incentives (such as bonus pay) are far more effective if given up front with the caution that they will need to be returned if the teacher’s performance...
PovertyCure Wins 2012 Templeton Freedom Award
PovertyCure, an educational initiative of the Acton Institute, has won a 2012 Templeton Freedom Award for its contributions to the understanding of freedom in the category of “Free Market Solutions to Poverty.” From the website: Acton Institute, United States The US based Acton Institute has won a 2012 Templeton Freedom Award for their PovertyCure educational initiative. PovertyCure advocates moral free enterprise as the key to authentic and permanent poverty elimination. PovertyCure has already had a tangible impact on the poverty...
Who Shoulders Jonah Lehrer’s Guilt?
Jonah Lehrer’s recent firing from the New Yorker prompted The Wrap’s Sharon Waxman to author a wrongheaded apologia for the disgraced scribe. Waxman notes that, ultimately, Lehrer engaged in unethical conduct, but places the onus of his misdeeds on those who purchased his shoddy work. The 31-year-old Lehrer, you see, manufactured quotes from whole cloth, freely lifted whole paragraphs from previous self-authored pieces and lied about both when confronted by reporters. Lehrer was fired and his promising career in journalism,...
Miller on ‘Christ and the City’
Acton Research Fellow and Director of Media Michael Matheson Miller will be featured on Christopher Brooks‘ “Christ and the City” radio program this evening at 5:00 p.m. EST. Brooks is the pastor of a Detroit church and his program, which airs from 4 – 6 p.m., addresses matters of faith from a variety of perspectives. Miller will be joining the program to discuss PovertyCure, an Acton educational initiative, and the PovertyCure team’s recent trip to Haiti. Follow this link to...
Cincinnati’s Promising Teacher Evaluation Method
Last week, mented on Grand Rapids Public Schools’ new attendance policy and Michigan’s tenure reform bill. To summarize, while applauding GR Public’s new policy as effectively incentivizing students to show up to class and take their studies more seriously, I was skeptical about MI’s new bill which ties teacher evaluations to student performance. In their article “Can Teacher Evaluation Improve Teaching” in the most recent issue of EducationNext, Eric S. Taylor and John H. Tyler share the results of their...
Irony of Ironies: Samuel Gregg on Vatican II and Modernity
Samuel Gregg, Acton’s Director of Research, has an article in Crisis Magazine entitled ‘Irony of Ironies: Vatican II Triumphs Over Moribund Modernity‘. Challenging the incoherence of modern thought, Gregg remarks Another characteristic of late-modernity is the manner in which moral arguments are increasingly “settled” by appeals to opinion-polls, choice for its own sake, or that ultimate first-year undergraduate trump-card: “Well, I just feel that X is right.” For proof, just listen to most contemporary politicians discussing the ethical controversy of...
The Strength in Checking In
As an older teen and early twenty-something I hated checking in. I thought telling others where I was or what I was up to was a sign of dependence and immaturity. In my invincible state of mind, I did not see the dangers and pitfalls of pletely on my own. I saw our natural human need to look out for each other as a weakness and not the strength that it is. Allowing others a window into our lives by...
Another Reason We Can’t Afford the Affordable Care Act
In addition to internal logical inconsistencies which raise serious concerns of long term economic sustainability regarding the Affordable Care Act (ACA), recently analyzed by John MacDhubhain, Robert Pear reports in the New York Times over the weekend how confusion over certain ambiguities in the law (ironically over the meaning of the word “affordable”) would end up hurting some of the people it is precisely designed to help: working class families. Pear writes, The new health care law is known as...
Lawlessness Keeping India in the Dark
Earlier this month, India experienced the worst blackout in global history. Over 600 million people—more than double the number of people in the U.S. and nearly one in 10 people in the world—were left without power. The crisis highlights the fact that corrupt governance and lawless institutions can keep even an entrepreneurial people in the dark: Along with a lack of investment in infrastructure, the crisis also had roots in many of India’s familiar failings: the populist tone of much...
What an Olympic Swimmer’s Choice Tells Us About Capitalism
The legal institutions of capitalism exist not to advance any particular purpose, says Robert T. Miller, but to facilitate the advancement by individuals of their various, often conflicting purposes: As this article in the Wall Street Journal explains, Missy Franklin, a seventeen year-old from Colorado who won the gold medal in the 100-meter backstroke last week, has steadfastly refused lucrative endorsement contracts. Why? Because she wants to preserve her amateur status so that she can petitively in college. In other...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved