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 in understanding how sharing more wealth and influence with workers and communities can correct 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 FPIC, shared ownership models, and workers on boards.