Massachusetts Treasurer Deborah Goldberg on March 26 proposed to overhaul the Pension Reserves Investment Management board's custom proxy voting guidelines.
Goldberg said the moves would target board diversity, wage equality, renewable energy, human rights standards and other matters aimed to strengthen corporate governance and protect the value of the pension fund's investments.
"Demanding that companies create diverse leadership teams and confront the threat of climate change are no longer simply admirable social goals," said Goldberg.
Goldberg led a review of the custom voting guidelines shortly after taking office in January and collaborated with PRIM staff before presenting the recommendations to PRIM's audit and administration committee.
With committee approval, the PRIM board, the nine-member board that oversees the state's $61 billion pension fund, would consider the policy changes at its April 7 meeting.
In line with her commitment to enhance diversity, both in government and in the private sector, Goldberg proposed a new policy to vote against all board nominees if less than 25% of the board is diverse in race and gender.
She also announced several additional changes to the PRIM custom proxy voting policy. They include voting for proposals that seek increased investment in renewable energy sources, request a report on company energy efficiency policies and goals, and ask companies to stop all misleading advertising to youth and to increase health warnings on cigarette smoking.
Additionally, she also introduced a new statement of principle in which PRIM urges companies to lead on the issue of wage equality and proactively seek to hire a diverse workforce.
