Activist nuns use shareholder power to challenge Big Tech and financial firms
Sister Susan Francois, a member of the Congregation of the Sisters of St. Joseph of Peace, is part of a group of 88 nuns in the US and UK who practice shareholder activism. These nuns, who do not wear traditional habits and some of whom are active on platforms like TikTok, use their investments in major corporations to advocate for issues such as climate change, Indigenous land rights, and racial justice. Sister Francois, serving as the congregation's treasurer, represents their interests in urging companies to act for the common good. Recently, the nuns targeted Palantir, a data analytics company, concerned that its AI software was being used by US immigration agencies like ICE to track and deport migrants, potentially violating human rights. They submitted a shareholder resolution demanding Palantir conduct a Human Rights Impact Assessment (HRIA) for its products and services. Although the proposal received only 13% of the total votes, the nuns considered it a success, noting that 56% of non-controlling shareholders voted in favor. Palantir stated the nuns' initiative was based on misinformation and denied being a data company selling personal data. This action coincided with Pope Leo XIV's encyclical "Magnifica Humanitas," which warned about AI's potential to dominate humanity and stressed its use for the common good and preservation of human dignity. The nuns also pressured Citigroup regarding its financing of fossil fuel projects in the Amazon, leading the bank to agree to publish a report on the topic in April 2024. The nuns acknowledge the irony of profiting from companies whose practices they criticize, but state that investment returns fund healthcare for elderly nuns and that their stakes are small. They avoid investing in arms manufacturers and primary fossil fuel producers, emphasizing the importance of engaging with corporations to have a voice in decision-making. The congregation, founded in 1884, sees its activism not as political but as defending God's creation and human rights.
This case highlights the evolving strategies of faith-based organizations in corporate governance, leveraging financial stakes to influence corporate behavior on ethical and social issues. The nuns' approach demonstrates a sophisticated understanding of shareholder mechanisms, aiming to raise awareness and foster dialogue even when immediate policy changes are not achieved. Their criticism of Palantir's AI applications and Citigroup's fossil fuel financing reflects growing concerns about the societal impact of advanced technologies and the financial sector's role in environmental degradation. The nuns' strategy of engagement, rather than divestment, suggests a belief in the potential for internal reform within large corporations, a perspective that balances pragmatic financial interests with moral imperatives. This method offers a model for other socially conscious investors seeking to align their capital with their values in an era increasingly shaped by technological advancement and climate challenges.
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