Ahead of Oreo-maker Mondelēz’s 2024 shareholder meeting, Wespath filed a shareholder resolution that requested the company provide to its shareholders an independent third-party report to assess the effectiveness of the company’s implementation of its Human Rights Policy (HRP) in places like Russia and Ukraine. Wespath’s resolution received over 30 percent support from shareholders.
Wespath helps pioneer new approach for investors to mitigate human rights risks Wespath partnered with global asset manager Schroders and strategic partner Heartland Initiative to co-author a white paper introducing a new way to identify and manage human rights risks in investment portfolios. The paper, The Saliency Materiality Nexus, offers a tool for investors to assess where human rights harms may become financially material. The saliency-materiality nexus helps investors focus on the most serious human rights risks that could also impact a company’s bottom line. Saliency means how severe a human rights issue is—like forced labor or violence. Materiality means whether that issue could cost the company money or damage its reputation, leading to significant potential risks for shareholders. Human rights risks for companies and shareholders most often translate into financial impacts in conflict-affected and high-risk areas (CAHRA). Examples of current CAHRA include the Democratic Republic of Congo and Ukraine. 58
While CAHRA pose a higher degree of risk, the paper is not meant to deter investment in these markets, because they depend on capital investment to spur economic growth, reduce conflict and bolster human rights protections. Rather, the paper introduces a practical, human rights-based framework that can focus investors’ efforts on identifying and addressing the most severe social risks in their portfolios.