As a small family foundation (under $5 million in assets), we have an “active ownership” strategy that allows us to punch above our weight and extend our impact beyond our modest levels of grantmaking.
We chose our investment advisors, Clean Yield Asset Management, in large part because of their willingness to work with our foundation on several strategies, all at no extra cost and as a core component of their business practices:
Proxy Voting – Our advisor partners vote all of our proxies on behalf of our foundation, in alignment with our shared ESG principles.
Shareholder Engagement – We have been offered opportunities to lead or co-file shareholder resolutions on a number of timely issues, including political and lobbying expenditures (Exxon-Mobil), linking executive compensation and sustainability metrics (Walgreens/Boots Alliance); and just this week signed on to co-file a resolution asking American Water to provide more transparency on their lobbying and association expenditures (e.g., via groups such as the U.S. Chambers of Commerce and American Legislative Exchange Council/ALEC). Our engagement includes helping to draft letters to management and explanations for shareholder audiences, and participating in direct dialogue with management.
Impact Investing – Although our foundation’s assets are below the threshold allowing us to access some impact opportunities available only to accredited investors, we have worked creatively with Clean Yield to accomplish quite a bit beyond application of ESG screens to traditional public equity investments.
Own What You Own – Working with our advisors, we are able to develop a thorough understanding of each company in our portfolio – why it is there, how it compares to others on a range of ESG criteria, what is the financial value and social impact it brings to our investment mix, and where are areas we might engage with management to help improve performance?
This approach allowed us to be part of the initial cohort of foundations making public Divest-Invest commitments and following through on them. On the grantmaking side, we have been long-term funders of As You Sow’s annual Proxy Preview publication for individual donors, foundations and other institutional investors.
- Jonathan Scott, President & Director, Singing Field Foundation
