Getting Ahead of the Curve on Dynamic Materiality

Getting Ahead of the Curve on Dynamic Materiality:

How U.S. investors can foster more inclusive capitalism

Despite soaring corporate profits and strong market performance, wealth and income inequality are increasing, leading to public disenfranchisement and market imbalances which can eventually jeopardize crucial business functions and diversified investors’ portfolios. Institutional investors are increasingly concerned with the financial implications of social and environmental risks and calling for tools to identify and mitigate them.

The Predistribution Initiative (PDI) is pleased to have partnered with Oxfam America and Omidyar Network on a new discussion paper, “Getting Ahead of the Curve on Dynamic Materiality: How U.S. investors can foster more inclusive capitalism.” This paper is designed to support U.S. investors and their investees in understanding how sharing more wealth and influence with workers and communities can correct these imbalances and support early identification and mitigation of emerging risks. Specific tools and opportunities are highlighted that can foster more sustainable and responsible value creation – and ultimately a more inclusive and thriving economy. Examples include: grievance mechanisms, freedom of association and collective bargaining, human rights due diligence and free prior and informed consent (FPIC), shared ownership models, and workers on boards.

A sincere thank you to Fran Seegull of the U.S. Impact Investing Alliance and Tipping Point Fund on Impact Investing for her excellent foreword, as well as Claire Mattingly, Madison Banker; Irit Tamir and Sharmeen Contractor of Oxfam; Elena Botella and Chris Jurgens at Omidyar Network, and to those who contributed to the paper: Kindra Mohr, Esq., David Wood, Thomas Croft, Debbie Nisson, Josh Zinner, Mary Hiebert, Nadira Narine, Thomas A. Kochan, Perry Teicher, Christopher Mackin, Tom Powdrill, Alison Lingane, Taylor Sekhon, Jon Shell, Janet Williamson, Aaron Brenner, Nabil Ahmed, Caroline Brodeur, Nick Galasso, Uwe Gneiting, Emily Greenspan, Hana Ivanhoe, Diana Kearney, Daniel Mule, Kauwel Qazi, Helen Ripmeester, Stephanie Burgos, Tim Hirschell-Burns, Scott Sellwood, and Robert Silverman.