By Cathi Kim
Senior Vice President, Inclusiv/Capital, Investments and Impact

September 12, 2024, New York, New York -- Inclusiv and the Adrian Dominican Sisters announced the Sisters’ investment in Cooperativa de Ahorro y Crédito Jesús Obrero (“Jesús Obrero”), a Community Development Financial Institution (CDFI) cooperativca advancing the economic well-being of communities in Guaynabo, Puerto Rico.

Puerto Rican cooperativas have been at the forefront of Hurricane Maria recovery efforts and initiatives to revitalize local economies across the Island. Jesús Obrero’s mission and impact focus on the economic, social, and environmental well-being of under-resourced communities and the cooperative sector. 

Jesús Obrero has developed one of the leading green lending models, providing critical infrastructure on the island by financing the installation of hundreds of solar systems for households and small businesses and supporting the creation of community micro-grids.

The Adrian Dominican Sisters Portfolio Advisory Board is the first investor to replicate the model created by Inclusiv and Deutsche Bank Americas Foundation to invest in cooperativas and their recovery and resiliency initiatives in Puerto Rico. This partnership demonstrates the strength of the Puerto Rican cooperative sector and field building efforts led by Inclusiv. This investment represents the latest impact initiative added to the 42-year partnership between Inclusiv and Adrian Dominican Sisters. 
Read more about Inclusiv’s partnership with Adrian Dominican Sisters in the 2023 Inclusiv Annual Report.

“The Adrian Dominican Sisters have been catalytic partners to the community development credit union movement, demonstrating what is possible when we lead with purpose and put communities first,” said Cathie Mahon, President and CEO of Inclusiv. “Inclusiv is grateful for the Sisters’ dedication and foresight that provided the critical capital necessary for the growth of the CDFI sector. We are delighted to expand our partnership on anti-poverty and wealth-building initiatives to include the climate resiliency and economic revitalization efforts led by cooperativas in Puerto Rico.” 

Sister Marilín M. Llanes, OP, Director of the Adrian Dominican Sisters’ Portfolio Advisory Office, said, “We rejoice with our new partnership with Cooperativa de Ahorro y Crédito Jesús Obrero thanks to Inclusiv for facilitating the connection. A great hope in common we share is to be pathways bringing about economic opportunities for the struggling but resilient communities in Puerto Rico.” 

Aurelio Arroyo González, Executive President of Cooperativa Jesús Obrero, said the investment “allows us to continue expanding the footprint of cooperative solidarity work in our communities.” He added that since its founding in 1959, the Cooperativa has focused on developing financial products and services that strengthen members' ability to improve their conditions and quality of life and, more recently, to enhance their capacity to face the challenges brought by climate change. “This investment represents a boost to the history of community engagement of our institution, and we receive it with the commitment to continue creating opportunities for our members, communities, and the cooperative ecosystem of Puerto Rico,” he said. 

Inclusiv’s work to increase investment in cooperativas is just beginning. Thanks to trailblazing investors like the Adrian Dominican Sisters and Deutsche Bank Americas Foundation, more institutional investors are exploring opportunities to support cooperativas by working with Inclusiv to invest and place deposits in these vital institutions. The first mainland investor deposits in cooperativas are coming soon and Inclusiv looks forward to continuing to grow its capital offerings for the cooperativa sector.
 

By Mary Minette
Mercy Investments Consultant

Image attribution: kris krüg, Deepwater Horizon Oil Spill - Gulf of Mexico, CC BY-SA 2.0

August 19, 2024, Adrian, Michigan – In the 2023-2024 proxy season, the Portfolio Advisory Board (PAB) filed 19 shareholder proposals. Eight were withdrawn for agreement; eight went to a vote; two were omitted from the proxy statement; and one (Smith & Wesson) will be voted on in September. 

According to the Interfaith Center on Corporate Responsibility (ICCR), overall shareholder filings decreased from 460 in 2023 to 400 in 2024. Climate change continues to be the top issue area for filing, but human rights and workers’ rights were the second highest issue area filed this year. 

The top industries receiving shareholder proposals in 2025 were banks and oil and gas companies. Amazon, Meta, Alphabet, ExxonMobil, and Chevron continued to receive the most shareholder filings. In 2024, the PAB filed at all of the above companies except for Chevron.

The Securities and Exchange Commission (SEC) allowed companies to omit 52% more proposals from their proxy statements in 2024 than in 2023. Two proposals filed by the PAB were omitted from proxies. Both proposals requested more detail from large U.S. banks regarding their climate transition plans.

The PAB filed shareholder proposals with five pharmaceutical companies concerning their patenting practices and how they impact patient access to affordable medicines. One proposal went to a vote, and four were withdrawn for agreement. Notably, Pfizer agreed to make significant improvements in its Human Rights Policy as well as committing to establish a human rights due diligence process around its pricing and access initiatives in the next 12 months. Gilead agreed to provide additional disclosure, including listing all the in-force patents it currently has on its top five selling drugs.
  
The PAB co-filed a resolution asking Exxon to issue a report evaluating the economic, human, and environmental impacts of a worst-case oil spill from its expanding operations offshore of Guyana. During a call with investors, Exxon shared additional information on how it is enhancing process safety and managing spills. The company also shared that it has assessed the costs of responding to a Guyana spill with an independent third party, assuring the company that $2 billion would cover the cost of the spill. Based on the information shared by the company, investors decided to withdraw the proposal. 

However, in January, ExxonMobil took the extreme step of suing two small shareholders to keep a climate change proposal off their proxy ballot, rather than going through the SEC “no action” process to ask for approval to omit the proposal. The company elected to continue the suit even after the shareholders agreed to withdraw the proposal and took an aggressive stance against other shareholders with proposals on its proxy ballot, questioning whether they were “real” investors or merely activists with an “extreme agenda.” 

In response, several ExxonMobil shareholders filed exempt solicitations urging their fellow shareholders to vote against members of the board, including CEO Darren Woods and lead independent director Joseph Hooley.  

Despite these actions indicating shareholder disapproval of company leadership, ExxonMobil continued with its aggressive stance and its lawsuit. The lawsuit was finally dismissed by a court in Texas after the shareholder proponent agreed in writing not to refile their climate proposal with the company in the future. 
 

By Sister Marilín Llanes, OP
Director and Portfolio Manager
Portfolio Advisory Board Office

Founded in 2005, Windmill Microlending opened its doors to skilled immigrants and refugees who land in Canada to rebuild their lives. The organization is committed to crafting the needed financial products and equipping clients, who don’t have established credit ratings or collateral, with the resources that promote economic mobility and equity.

The Adrian Dominican Sisters’ Portfolio Advisory Board (PAB) members on June 7, 2024, unanimously approved a loan to Windmill. 

Dr. Maria Eriksen, a Calgary-based clinical psychologist, was disheartened to learn custodial staff at the hospital where she worked were internationally trained professionals. Their credentials were not recognized and they could not practice their professions due to an array of obstacles ranging from language barriers, high licensing costs, and a limited understanding of the Canadian system. When Dr. Eriksen learned about the challenges these skilled immigrants faced, she took action steps that consequently changed the lives of thousands of new settlers across Canada.  

Windmill offers financial support with affordable, low-interest loans of up to $15,000 to pay for accreditation, training, and career development. Its mission-driven way is well aligned with the Adrian Dominican Sisters’ Enactment that beckons us to “building the beloved community in which everyone is cared for, absent of poverty, hunger and hate.” 

Binal, a dentist from Mississauga, Ontario, calls her Windmill Microlending Career Success Coach, Robert, “an angel in my life,” who helped her and her family at a time when they were truly in need.

She says the Windmill loan application process was simple and responsive. Robert was there to answer questions and provide financial and career advice through the entire process, which she completed from home. 

“My Windmill loan really changed my life. I was preparing for my final exam to get my credential to become a dentist,” she said. “We were in a dire financial situation and Robert shared with me the good news.” 

Binal was on maternity leave at the time and was struggling to pay for her professional accreditation exams and no financial institution would extend her the funds needed to complete the licensing process. She had been referred to Windmill Microlending by one of her dental instructors, so Binal applied for a loan and was approved within five business days. 

Binal’s Windmill loan helped her pay for childcare while she studied as well as her exam fees. It also meant she wouldn’t need to return to long shifts at a sandwich shop. With the financial pressure relieved, Binal completed her exams and is now back working in her chosen profession, bringing smiles to her patients. 

She says her early years in a new country proved challenging but with Robert and Windmill’s support, her future is bright and her potential is unlimited.
The Windmill microlending invests in financial resilience for transformative impact in the lives of skilled immigrants and refugees across Canada.

Watch a video of Binal describing her experience with Windmill.
 

By Sister Marilín Llanes, OP
Director, Portfolio Advisory Board Office

Photo Courtesy of Inclusiv

June 12, 2024, New York, New York – A high-spirited celebration took place this May in New York City, hosted by Inclusiv on its 50th anniversary. Inclusiv has been a community partner since 1982 of the Adrian Dominican Sisters’ Portfolio Advisory Board (PAB), which provided capital that launched its first impact investment.  

Inclusiv invests funds into community development credit unions to support lending, wealth building, and financial inclusion initiatives in low-income and underserved communities throughout the United States and beyond.
 
The Inclusiv gathering of more than 800 partners and colleagues commemorated an amazing milestone, reimagining opportunities and pathways toward a more equitable and inclusive present and future for generations. 

Many voices that have been formative to the movement were present, including the Adrian Dominican Sisters, represented at the event by Sister Durstyne Farnan, OP. Leaders from a vast cross-section of community investors shared their insights and commitments to social justice and created investments throughout the three-day event. 

Additional comments and highlights of the partnership between Inclusiv and the PAB were featured in Inclusiv’s 2023 Annual Report, reproduced below with permission.

First In: Our Long Partnership with the Adrian Dominican Sisters

In 1982, federal support for Community Development Credit Unions (CDCUs) was waning. Inclusiv, then known as the National Federation of Community Development Credit Unions, began searching for outside investors. The Adrian Dominican Sisters became our first – providing a $30,000 loan that laid the foundation for a new capitalization program and cemented our role as a Community Development Financial Intermediary.

Some 42 years later, the partnership with the Adrian Sisters continues. Sister Marilín Llanes, Director of the Sisters’ Portfolio Advisory Office, shared that our continued relationship is about more than just familiarity – it’s about values.

“Our relationship with Inclusiv has always been about aligning ourselves with a partner that shares the same values that we do,” she said. “It’s about our commitment to respond to the social injustice of our time. It’s about women, people of color, Indigenous people, the LGBTQ+ community, and anyone who has experienced marginalization. WE want to be there and to help them prosper.”

In recent years, the Adrian Dominican Sisters have deepened their commitment to not only social but also environmental stewardship. They recognize that ecological sustainability is inextricably linked to social justice and have begun to prioritize investments that reflect this understanding. This evolution of their investment strategy resonates with Inclusiv’s expanding focus on environmental sustainability and climate justice.
 
After 42 years, Sister Marilín sees a long road ahead for this relationship.

“I see Inclusiv as a long-term partner of ours in the mission to bring about what the Scripture calls ‘beloved community,’” she shared. “Our relationship has been so supportive and I look forward to the next thing I’ll learn through the incredible community that Inclusiv has built.”

Reprinted with permission from the Inclusiv 2023 Annual Report
 

By Caroline Boden
Director of Shareholder Advocacy, Mercy Investment Services

In early 2023, The New York Times reported on the use of illegal child labor, mostly unaccompanied migrant children, in the United States. These children were illegally employed by suppliers for some of the biggest U.S. companies, including in factories producing Cheerios for General Mills, dinner rolls sold at Walmart and Target, auto parts for Ford and GM, and cleaning meat processing plants that supply JBS, Tyson, and others. Since then, additional investigative reports may have exposed child labor violations in the restaurant, construction, and other sectors in the United States.

As minors, and especially as unaccompanied migrants, these children are particularly vulnerable to exploitation. Although the children weren’t employed directly by these major brands, their illegal employment by the suppliers violates these companies’ human rights policies and supplier codes of conduct, as well as U.S. child labor laws. Additionally, the principle of human rights due diligence outlines the responsibility of all actors within a value chain to identify, address, and remediate any potential or actual human rights violations.

Following the reporting, responsible investors and members of the Interfaith Center on Corporate Responsibility (ICCR) reached out to several of the named companies, including Target, Tyson, and Walmart, to understand how they were addressing the issue and engaging with the violating suppliers to prevent further harm. 

These conversations showed that most companies were surprised, as suppliers in  North America have generally been perceived as low risk for human rights violations. Most companies shared that they were investigating the violating suppliers and working to strengthen recruiting and hiring practices; however, public disclosure of companies’ efforts to address the violations and remediate the harm caused to the children is lacking.

As part of our shareholder advocacy work, the Adrian Dominican Sisters Portfolio Advisory Board (PAB) is joining other investors and NGO partners to ask these companies to conduct human rights impact assessments for the region, especially given the high use of migrant labor in the United States. 

The PAB joined other Walmart shareholders in filing a shareholder proposal for the 2024 proxy season that addresses the child labor issue and requests the company conduct a human rights impact assessment. An ICCR partner filed a proposal asking Tyson to commission an independent report evaluating the effectiveness of their policies and practices to prevent illegal child labor throughout the company’s value chain. The proposal received 12.1% of the shareholder vote in favor.

Unfortunately, one of the responses to the child labor violations has been an effort in many states to roll back child labor protections, such as lowering the eligible age to work, allowing minors to work in hazardous work environments, and extending the number of hours that minors can work. As of February 2024, 28 states had introduced bills to weaken child labor laws, with 12 states enacting such legislation.

 

By Ileana Cintron
Chief Economic Empowerment Strategist, Enterprising Latinas, Inc.

Enterprising Latinas, Inc. (ELI), a nonprofit organization led by women of color, announced that it received a grant from Spectrum Digital Education to establish a new computer lab to boost people’s digital skills, with a focus on women.  

ELI, founded in 2009 and operating since 2014, has been a lending partner of the Adrian Dominican Sisters’ community investing fund since 2023. Its focus is to create pathways to prosperity for women and low- to moderate-income families in the Wimauma, Florida, community and throughout Tampa Bay. 

ELI’s enduring commitment to empowering women by equipping them with new skills is well aligned with the Adrian Dominican Congregation’s 2022 Enactment on Women, to “strive to attain gender equality and women’s full and equal participation and decision making in Church and society.” 

For more information, read the article by Lizabeth Gutierrez on Spectrum News. 
 

March 8, 2024, Tampa, Florida – A food truck business in Florida seems to be a long distance – geographically and culturally – from the Motherhouse of a group of Dominican Sisters in Adrian, Michigan. But the connection is deep and inspiring.

A $100,000 community impact investment from the Adrian Dominican Sisters’ Portfolio Advisory Board (PAB) allowed Enterprising Latinas to apply to become a Community Development Finance Institution and to give low-interest micro-loans to 19 Latino business owners. Among them were Diego Jara and his wife, Yeny Perez, owners of the food truck business So Yummy Birrieria. 

The loan received by Enterprising Latinas was one of nearly 600 community impact investments made by the PAB since 1978. Loans have been made to organizations throughout the United States and in many regions of the world in the areas of worker-owned cooperatives, credit unions, banks, housing projects, and community organizations.

Watch the video and read the entire article about PAB’s impact in Florida by Lizbeth Gutierrez in Spectrum News. 

By Lydia Kuykendal
Mercy Investments

February 6, 2024, Adrian, Michigan – Last year, shareholder health work focused on intellectual property protections for branded drugs. Specifically, it sought to clarify the relationship between pharmaceutical company patenting and access strategies. 

That work continues, with the Portfolio Advisory Office filing resolutions at five pharma companies – Eli Lilly, Gilead Sciences, Johnson & Johnson, Pfizer, and Merck. Several regulatory changes over the past year will impact this issue, and we hope that companies see these second-year proposals as a way to prepare for these coming changes.

First, the Inflation Reduction Act (IRA) empowers the federal government to negotiate some drug prices. Some have argued that it enacts significant patent reform, specifically around the issue this proposal seeks to understand. This comes from a critical provision of the IRA that states the only drugs that qualify to be considered for price negotiations are drugs with no generic competition, thus discouraging extended patent exclusivities. Additionally, three bills addressing patent reform passed out of the U.S. Senate Judiciary Committee in 2023 and, if passed, would impact pharma companies’ current practices.

In addition to the continuing work on patents, the Interfaith Center on Corporate Responsibility (ICCR) health group has started a workstream around the right to health. This is a human right: the right to the highest attainable standard of physical and mental health, as defined by the World Health Organization. Access to medicines is a critical component of the right to health. 

Target 3.8 of the United Nations’ Sustainable Development Goal 3 assesses progress toward “access to safe, effective, quality and affordable essential medicines and vaccines for all.” The UN Special Rapporteur on the Right to Health has made clear that states and pharmaceutical firms share the responsibility for increasing access to medicines and recommends that firms “should adopt a human rights policy statement which expressly recognizes the importance of human rights generally and the right to the highest attainable standard of health in particular.”

However, a quick look at drug pricing shows that U.S. pharmaceutical companies are not supporting this right. An analysis by the Rand Corporation concluded that U.S. prices for branded drugs were nearly 3.5 times higher than prices in 32 Organization for Economic Co-operation and Development (OECD) member countries. A study by the Kaiser Family Foundation found “prescription drug costs to be an important health policy area of public interest and concern.”

Shareholder proposals at Eli Lilly, Bristol Myers Squibb, and Pfizer seek to understand whether the business model of pharma companies may pose human rights risks. The current business model of the pharmaceutical sector, which in many instances prioritizes profitability over patient health, often infringes on these rights. Given pending legislation in the European Union that would mandate human rights due diligence as called for in the UN guiding principles, companies undertaking human rights due diligence will be ahead of the curve. 

International human rights organizations have recognized the human right to health for decades. Drug manufacturers have a responsibility to operationalize a business model that promotes this right worldwide. If, as all companies in this industry state, patients are indeed the most essential part of their business, this should be an achievable task.

 

Since 2022, Project Equity has been a lending partner with the Adrian Dominican Sisters Portfolio Advisory Board (PAB). Project Equity, a nonprofit organization, demonstrates a strong alignment with the Sisters’ commitment to mission-driven impact investing in underserved and underbanked marginalized communities. Evan Edwards, CEO of Project Equity, shares the innovative and catalytic efforts of his organization in an article he wrote for Forbes magazine. Read his article here.

By Mary Minette
Mercy Investments Consultant

December 8, 2023, New York, New York – The Interfaith Center on Corporate Responsibility’s (ICCR) annual Fall Conference took place October 3-5, 2023, in New York City and featured a variety of speakers and events that related to the work of the Adrian Dominican Sisters Portfolio Advisory Board (PAB). 

The event also provided an opportunity to celebrate the contributions and retirements of Sister Judy Byron, OP, Director of the Northwest Coalition for Responsible Investment, and Pat Zerega, Senior Director of Shareholder Advocacy for Mercy Investment Services. Both have provided many years of staff support to the PAB. 

Defending shareholder rights was a central topic of this fall’s ICCR gathering because of the growing number of bills introduced at the state and federal levels, aiming to prohibit investor consideration of Environmental, Social, and Governance (ESG) factors. (For an explanation of ESG investment and anti-ESG bills, read this recent article.) With 2023 ESG shareholder proposals seeing decreased support, investors discussed potential actions, namely offering public support for the SEC’s forthcoming disclosure rules and engaging large asset managers on their voting practices. 

Another session focused on providing investors with tools to engage asset managers on proxy voting. Following the recent rise of anti-ESG sentiment, asset managers significantly decreased their support for shareholder resolutions in their 2023 proxy voting. Asset managers oversee the holdings of investors, their clients, assuring that their decisions on behalf of the investors are made in good faith, aligned with the client’s responsible screening criteria.

ICCR members are urged to engage their asset managers on disclosure of voting policies, with progressive escalation steps for unresponsive managers, including switching assets to a competitor if the asset manager refuses to act.

In another emerging issue, a panel of presenters discussed the growth of Artificial Intelligence (AI), mindful of its impacts on society and democracy. The keynote speaker, Nathalie Maréchal from the Center for Democracy and Technology, explained that the most important decision is when not to use AI in modern work, citing the rise of disinformation, fraud, and misuse of data.

ICCR members continue to advance worker justice issues, and the conference included a session on advocating for companies to provide a living wage. The session’s panel members included an associate at a large retail chain who provided insight into the challenges facing workers, such as low wages, minimal benefits, and employer retaliation for employee criticism. 

A researcher on the panel illustrated the negative impact that underpaying workers can have on long-term shareholder value, as studies show that a living wage supports employee retention and productivity. 

The Racial Justice Investing Coalition moderated a session on racial justice-focused investing and its impact on fostering a stronger democracy. The session provided investors with a chance to learn about best practices from investors already working on this issue.

Another panel offered a presentation on pressing for corporate action on environmental justice and emphasized centering racial equity in climate work, engaging local communities in joint decision-making, and holding parent companies accountable for pollution from owned facilities.

In another session on company accountability, speakers addressed human rights due diligence (HRDD) and responsible contracting. Speakers explained the importance of supply chain contracts, highlighting that shifting risk onto a supplier is not the same as risk management. The panel members recommended that investors advocate for responsible contracts that feature shared commitments and prioritize human rights. 

The ICCR conference provides a valuable opportunity to strategize with fellow faith-based investors for the current shareholder advocacy season.
 

Caption for feature photo at top: Attending the ICCR conference are, from left, Sister Susan Mika, OSB, Sister Ann Scholz, SSND, Sister Judy Byron, OP, Timnit Ghermay and Sister Marilín Llanes, OP.