Shareholder Engagement in Tech: Status Report
Open MIC | December 2023
A dramatic growth in ESG investing in recent years has created momentum for successful shareholder engagement across multiple industry sectors, including technology, where investor advocates are successfully pressuring companies for accountability on a range of critical digital issues — from privacy and artificial intelligence to surveillance and racial equity. Our research identifies at least 10 initiatives funders could support in the field of shareholder engagement.
Challenges to successful shareholder engagement include a backlash against ESG investment practices, with prominent conservative and right-wing figures driving an emerging “anti-ESG” political movement. This movement requires a targeted response.
There is also concern that shareholder advocacy is hampered by a paucity of objective data and rankings to measure corporate support and performance in the digital arena, especially as advocates work to anticipate the societal impact of new and emerging technologies — including artificial and virtual reality, biometrics, nanotechnology, synthetic biology and others.
As shareholder engagement on digital issues matures, there’s need for greater coordination and action by advocacy organizations across a broad range of potential “finance-focused” initiatives, which will entail focused and long-term support from the philanthropic community.
