Self-reflection and next steps on Diversity, Equity and Inclusion

Racial justice, an important component of a more general movement for workplace Diversity, Equity and Inclusion (DEI), is an issue which resonates with EIG members, committed as we are to ethical investing. In September 2020 14 EIG members gathered (virtually) to discuss antiracism and reflect on how EIG can integrate it into its investing and ways of working. We discussed possible avenues for engagement, while recognizing EIG’s limited resources (as a reminder, we are a volunteer investment club, entirely member-run). As a first step, we developed a survey that was sent to all EIG members in order to prioritize actions. 

EIG members indicated that:

• The favoured course of action for EIG is to research antiracist investment opportunities.
• It is difficult to prioritise shareholder engagement, as many topics that EIG addresses are important.  Environmental issues are ranked as the most important, with labour rights and antiracism, close behind.
• Members are not particularly interested in holding a public event on antiracism.
• Members have some availability to put time into work towards racial justice at EIG.

With this feedback, we propose to embark on a series of modest actions:

• We will raise awareness of both investment committees (equities and community) to diversity, equity and inclusion factors, particularly related to racial justice, when researching potential investments. Nevertheless, we recognize the need to bear in mind the full picture of the portfolio(s) in light of other, established criteria on environmental, societal and financial (risk) factors.
• For shareholder engagement, EIG has neither the resources nor the clout of larger institutional investors, whose actions we will monitor and piggyback on when they involve issues of concern to us, including diversity, equity and inclusion. We will keep a lookout for published research and analysis of such issues, as well as shareholder proposals that we may vote and follow up on.
• For outreach, we will look for opportunities to both diversify our membership and make other connections.
• All groups can report back in 6 months to take stock of progress.

Meanwhile, we are buoyed to read about significant developments among shareholder groups to further the cause of racial justice and workplace equity, particularly in the US. For example, the non-profit shareholder advocacy group, As You Sow, is pushing for disclosure of companies’ policies and practices on these issues and recently published data gathered on related key performance indicators for the 250 largest S&P companies: New Scorecards Compare 250 Largest S&P Companies on Racial Justice and Workplace Equity Disclosure. A look at critical issues, along with detailed data, is presented in a webinar on the topic, now available on As You Sow’s website. We will pay close attention to how EIG’s investment portfolio fares in this and future analyses. We will also consider how to apply future recommendations from As You Sow and others on evaluating investments and supporting shareholder proposals.