This article presents a framework for examining the role of proxy advisors in campaigns for ethical investment. We argue that advisors have historically been assumed to be neutral and technical experts, when in fact they wield significant political influence, and can serve as gatekeepers or allies in campaigns for ethical investment. To substantiate these claims, we examined the role of proxy advisors as agents for disseminating norms of business behaviour. We first traced the ecosystem of actors in campaigns for ethical investment, highlighting the pivotal role that proxy advisors play in such movements and the market control of the two key players, and the implications of their potentially influential position. In doing so, we challenged some of the key arguments in favour of shareholder activism, predominately that it widens opportunities for political engagement. We introduced a norm contestation framework for analysis and applied this to proxy advisors as key actors in the ecosystem of market-based activism. Lastly, we explored this political influence through two case studies that illuminate proxy advisors’ role in judging companies on their ESG performance. We also detailed the backlash to the proxy advisory market, which affirms the arguments we regarding the political influence of proxy advisors, highlighting that this is recognised by regulators, and justifies further scholarly scrutiny.
Tag Archives: Climate change
The Renewables Future is Built on Modern Slavery
I spoke to the folks at 360info about ways in which modern slavery and climate change intersect. Particularly, we talked about how efforts to mitigate climate change can inadvertently lead to an increase in labour exploitation.
The mineral Cobalt is in almost everything required for the future. Laptops, smartphones, and semiconductors all use this rock, which is mostly pulled out of mines in the Democratic Republic of Congo. Cobalt, along with Lithium is also set to revolutionise the way we live and power our world through solar panels and enormous battery storage, but as much as 30% of the cobalt mined in the DRC is done so by people working under conditions described as modern slavery. So the question is, now that we know, what do we do about it? In this episode, we explore what is being done to preserve our world against modern slavery a problem that traps 50 million people around the world. Providing expert insight is Associate Professor Martijn Boersma from the University of Sydney.
Modern Slavery and Renewable Energy
Australia should approach its renewable energy transition with caution, experts say, amid concerns of labour exploitation in the production of solar panels.
Polysilicon is the most common material used to produce solar panels, and around 45 per cent of the world’s supply comes from Xinjiang, China.
The United Nations says China may be committing crimes against humanity in Xinjiang, with experts accusing the Chinese Communist Party (CCP) of exploiting its Uyghur Muslim minority into forced labour to make products including solar panels.
China strongly denies allegations of human rights abuses against its Uyghur Muslim population.
Modern Slavery and Climate Change – Towards an Integrated Approach
Climate change has made millions vulnerable to modern slavery. Displacement and migration because of climate change creates a nexus of harm that pushes people to accept work that actively contributes to environmental destruction of forests, fisheries, waterways and land. Weak regulation and enforcement, corruption, a lack of political will and the lure of profits combined with vulnerability of people creates a vicious circle of opportunity for forced labour, child labour, debt bondage and slavery. In this webinar, speakers explored how an integrated approach to addressing modern slavery, climate change and environmental destruction can lead to impactful interventions by governments, communities, workers and business.
Hosted by: Jenny Stanger, Anti-slavery Taskforce, Catholic Archdiocese of Sydney
Facilitated by: Dr Martijn Boersma, Associate Professor of Modern Slavery and Human Trafficking at University of Notre Dame Australia
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No Absolution Through Conscious Consumption
Evolving consumer ethics will see a dramatic shift in the way Australian companies do business, with an emphasis on aligning to their shoppers’ values.
Businesses will have to change their operations to keep up with consumer standards, from seemingly superficial things like packaging, to core operations such as worker treatment.
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Australian Property Sector Failing On Sustainability
Some of Australia’s property companies are gaining top global accolades for their sustainability performance but according to a damning new report the commercial property sector as a whole is failing to meet even basic sustainability benchmarks.
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