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.

Que signifie l'antiracisme pour le GIÉ?

Comme le dit Ibram X. Kendi, « soit nous soutenons des politiques qui conduisent à des inégalités raciales et à l'injustice […] ou bien nous soutenons des politiques et nous poussons pour des politiques qui mènent à la justice et à l'équité pour toutes et tous».

Ces dernières semaines, plusieurs articles au sujet de l'antiracisme pour les investisseurs ont été publiés (par exemple dans Fortune, Forbes, CNBC et Quartz). Dans le même ordre d'idées, un article publié dans le Financial Post donne un aperçu de la diversité (ou de son absence) dans la composition des conseils d'administration au Canada.

Tout cela me fait réfléchir à ce que l'antiracisme pourrait signifier pour le GIÉ. Dans un premier temps, j’ai jeté un coup d’œil à notre portefeuille d’investissements (investissements communautaires et placements boursiers, 30 organisations en tout) pour voir si les organisations dans lesquelles nous investissons parlent de l’antiracisme ou prennent des mesures concrètes. Les résultats de cette enquête rapide sont ci-dessous.

What does antiracism mean for EIG?

As Ibram X. Kendi puts it “We are either supporting policies that are leading to racial inequities and injustice […] or we’re supporting policies and pushing policies that are leading to justice and equity for all.”

In recent weeks several articles on what antiracism means for investors have been published (for example in Fortune, Forbes, CNBC and Quartz). In the same vein, an article published in the Financial Post gives an overview of diversity (or lack thereof) in Board membership in Canada.

All this got me thinking about what antiracism might mean for EIG. As a first step, I’ve taken a look at our investment portfolio (both community investments and equities, 30 organisations in all) to see if the organisations we invest in are thinking about antiracism or taking any concrete actions. The results of this quick survey are below.

We’re now reflecting on whether EIG should engage more actively in this issue as a group and, if so, in what way. We’ve had some ideas, which you’ll find at the end of this article, but would really like to hear your thoughts on this. Let us know what you think.

Persistence pays off in engaging with Xylem on the water privatization front

EIG made numerous attempts over the past year and a half to communicate with Matthew Latino, Director, Investor Relations, at Xylem (see earlier blog post). EIG’s persistence paid off. In October 2019, Mr Latino apologized for the lack of response to EIG’s enquiries, and provided clarification on the three points raised by EIG:

• How does Xylem support the UN Sustainable Development Goal on clean water and sanitation (SDG6)?
• What is Xylem’s position is on privatization of water?
• Has Xylem been involved in lobbying for deregulation of water supply?

The human costs of Costco

EIG has been engaging Costco on the topic of forced labour in its supply chain since February 2016. Following reports in the media on the potential abuse of workers in Costco’s supply chain in Cambodia and Thailand, EIG sent a letter expressing concern to the Executive Vice President and Chief financial officer at Costco. Despite numerous attempts on the part of EIG to solicit a response to the letter, Costco remained silent.

Silence from Xylem on the water privatization front

No news isn’t always good news. It has been about six months since we first reached out to Xylem and unfortunately we haven't received a response. EIG is always highly appreciative of responses from the companies that we engage. 

It all started in in the autumn of 2018 when some EIG members raised concerns with Xylem’s potential connection to water privatisation. This led to researching the topic and the decision to engage Xylem on the matter.

Exchanges about chocolate - EIG and Equal Exchange

You may recall that EIG got in touch with La Siembra after As You Sow reported finding heavy metals in a range of chocolate products, including some made by Equal Exchange. The finding resulted in legal notices being filed against chocolate manufacturers for failure to warn of lead and/or cadmium in their chocolate products. EIG also wrote to Equal Exchange in December 2018, asking for the company’s response to the legal notices, whether the company tests chocolate products for heavy metals and what measures are being taken to eliminate heavy metals from their chocolate products.

It took a couple of follow-ups on our end before the Chocolate Products Manager responded to us in April 2019. He noted that Equal Exchange is testing the levels of cadmium and lead in their products and also has testing done by its partners. The company is working to achieve the standards agreed to in the settlement of the case in California, and he shared these levels with us. As part of the settlement, parties agreed to fund research on how heavy metals get into cacao products and how this can be mitigated. EIG learned that this report will be made public and Equal Exchange has committed to sharing it with us (expected in May 2021).

Equal Exchange also highlighted its preoccupation around the impact of decisions in the chocolate industry on the livelihoods of small-scale farmers in regions where heavy metals occur naturally at higher levels. EIG shares this concern.

Learn more on our website.

EIG engages with companies in which it is a shareholder by writing letters to upper management on issues of concern. As investors, we feel our voices should be heard.