Shareholder resolutions calling for the adoption of a genocide-free investing policy at Vanguard might be withdrawn before the firm's July 2 shareholders meeting because it has established a formal policy.
The board of trustees of The Vanguard Group Inc., Malvern, Pa., now requires regular reporting on portfolio companies whose direct involvement in crimes against humanity or patterns of egregious abuses of human rights would warrant engagement or potential divestment, the firm said in a statement.
The board decided to formalize the process and has directed Vanguard to develop and implement screening and reporting procedures to cover all of its 157 funds, said Linda Wolohan, spokeswoman at Vanguard. The practice has been in place on an ad hoc basis across the firm.
The shareholder proposals called for Vanguard to adopt a genocide-free investing policy and targeted 30 mutual funds that the firm managed.