Creating guardrails to protect our common interest
the shareholder commons is tackling capital system failures that are endangering our future
Free market capitalism has made us healthier and wealthier for more than two centuries. But there is growing recognition of the costs we are paying for short-sighted business decisions that prioritize profits over our natural environment and human needs.
CAPITALISM IN CRISIS
MARKETS CONTINUE TO SEE EXTREME PROFITS EVEN AS ENVIRONMENTAL AND SOCIAL SYSTEMS WEAKEN
Trust in market systems deteriorates while current business approaches to sustainability fail to address the systemic issues. In an increasingly stressed and stratified society, business as usual is not tenable.
WE CAN DO BETTER
Preserving Human Dignity and the Earth’s Abundance
The Shareholder Commons seeks to redesign the creative engine of market capitalism to respect the dignity of all human beings and preserve the earth’s bounty. We believe capital markets should distinguish between profits earned through authentic value creation and profits that come from unsustainable and inhumane practices.
AN INNOVATIVE APPROACH
INVESTOR ACTION
Preservation of our common resources requires investor voice, not unilateral disarmament by individual businesses. Current market structures limit the ability of an individual company to focus on systemic issues if doing so would compromise its future cash flows. Without strong investor voices pushing back on these pressures, businesses will continue to exploit common environmental and social resources.
COLLECTIVE ACTION
Preservation of our common resources requires collective investor action, not unilateral disarmament by the individual businesses. Current market forces do not permit individual companies to focus on systemic issues when it harms them financially. Without some means to overcome these pressures, too many businesses will continue to exploit common environmental and social resources.
the power of universal owners
By harnessing the power of universal owners—large institutional investors with diversified portfolios that have a financial interest in the well-being of the economy as a whole—we are working to ensure our capital markets give priority to long term systemic health over individual company profits.
the power of universal owners
By harnessing the power of universal owners — large institutional investors with diversified portfolios that have a financial interest in the wellbeing of the economy as a whole — we are working to ensure our capital markets give priority to long term systemic health before individual company profits.
sustainable standards
To allow profit-seeking to serve its vital role in pricing goods and services, diversified investors should use their voices to promote minimum standards for sustainable business practices that will encourage competition through efficiency and innovation.
sustainable standards
To allow profit-seeking to serve its vital role in pricing goods and services, diversified investors should use their voices to establish minimum standards for sustainable business practices that will encourage competition through efficiency and innovation.
OUR PLAN FOR CHANGE
public advocacy and field building
The Shareholder Commons advocates for an economic system in which companies and investors are expected to forgo profits that would come from depleting the common resources upon which all companies rely, and instead to focus on profits from authentic value creation.
engaging investors
The Shareholders Commons seeks to catalyze an investor movement to promote sustainable corporate conduct that protects common resources and diversified portfolios.
policy
The Shareholder Commons develops and advocates for public policies that accommodate diversified investors’ needs.
Litigation
Speaking on behalf of the universal owner in the courts, The Shareholder Commons uses litigation to further systems change and to stop rewards to irresponsible companies in the form of high margins and cheap capital.
Report from the Field: The Growing Resonance of System Stewardship
Most shareholders are diversified, so that the most important factor determining their investment success will be the average return of the markets in which they invest, not the financial performance of any individual company. This creates a natural divergence of...
You Want Us to Ignore What? A Brief Analysis of anti-ESG Political Rhetoric
Politicians are vilifying “ESG investing”. The trigger for the furor is political opportunism: because ESG issues often mirror political issues, it is easy to mischaracterize them as leftist activism. Texas has already incurred $300-500 million in extra interest obligations by boycotting banks that account for climate impact in their underwriting businesses. This political strategy protects corporations that externalize costs with business plans that don’t account for social and environmental costs. These politicians are enriching corporate executives, but risking the savings of workers.
Shareholder Lawsuit Charges Meta Platforms with Prioritizing Profits over Shareholders
The Meta Board of Directors has been sued by shareholders for violating their fiduciary duty to shareholders by overlooking policies that exacerbate polarization and incite ethnic conflict.
Closing the Engagement Gap: Two New Case Studies on Climate Change and AMR
Click here to see our case studies on issues critical to shareholders advocating for improved social and environmental performance from companies.
Together, we're embarking on a fundamental transformation of our financial system...
