Following up on our blog post about Facebook, we see Nordea is taking a strong stance against investing in Facebook at all. This is a great example of how Sustainable and Impact investing work. As social problems are being considered in the media, personally or legislatively, we as investors consider our options on how to address the companies as shareholders. In some cases that means not investing at all. Some will determine the offenses are so egregious that they do not want to support or invest in anyway. Others will decide that the company is “movable”, that with dialogue and leveraging the power of ownership, a company may change course. Nordea has decided Facebook is not taking change seriously and their impact is too dangerous to own. Most other companies have decide to stick with ownership and advocate for change. As mentioned before there were several shareholder resolutions proposed this year, addressing the dual class shares, issues with privacy, and mental health issues associated with social media. We will see how Facebook faces these critiques and if they change course. It is our guess that if they do not, more companies will join Nordea and decide that Facebook is, in fact, far more egregious to humanity than beneficial.
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