A group of socially-responsible money managers, who have been pushing companies to address issues like gender-pay disparities and carbon footprints, plan to direct more of their funds to companies that promote racial equality.
“We recognize that the investor community has contributed to and benefited from racist systems,” the Racial Justice Investing Coalition said in a statement today. “We therefore take responsibility and commit to hold ourselves accountable for dismantling systemic racism and promoting racial equity and justice through our investments and work.”
As part of the investment-decision making process, the coalition said it will review portfolio holdings to identify companies that “reinforce systemic racism.” The goal is to ensure a company’s diversity and fairness in recruiting, promotions and compensation, while ending business dealings with entities that support “white supremacy.”
The RJI, started in 2017, has more than 250 socially responsible investors. Its members include Domini Impact Investments, one of the pioneers of responsible investing, as well as Zevin Asset Management and the Nathan Cummings Foundation.
“Racism pervades everything and is the foundation of our economy,” said Pat Tomaino, director of socially responsible investing at Boston-based Zevin Asset Management, which oversees about $500 million.
