Investors Rebuff Challenge to Thomson Reuters’ ICE Business Ties
Toronto-Shareholders of Thomson Reuters overwhelmingly rejected a proposal calling for a review of the human rights implications of the company’s work with U.S. immigration authorities, giving the measure only about 3% support at the firm’s annual meeting on Wednesday.
The resolution, submitted by the British Columbia General Employees’ Union, sought additional scrutiny of products and services provided by Thomson Reuters to law enforcement agencies, including contracts linked to U.S. immigration enforcement.
The proposal was opposed by the board of the Toronto-based content and technology company. Chairman David Thomson told shareholders during the meeting that more than 95% of votes cast were against the measure, while slightly more than 3% supported it.
“We welcome the outcome of today’s vote, which reflects shareholders’ confidence in the board’s recommendation to vote against the proposal,” a company spokesperson said.
The debate focused on concerns raised by some investors and employees that Thomson Reuters products may contribute to the enforcement activities of the administration’s immigration policies targeting undocumented migrants.
Supporters of the resolution pointed to a $22.8 million contract with the U.S. Department of Homeland Security that was scheduled to conclude in May. Part of the agreement involved providing license plate reader data to U.S. Immigration and Customs Enforcement (ICE).
Federal spending records show the contract, along with other government agreements, was awarded to Thomson Reuters Special Services (TRSS), a Virginia-based subsidiary of Thomson Reuters.
TRSS says its services assist government agencies in combating financial crime, identifying foreign influence operations and supporting law enforcement and national security analysis through data-driven tools.
Thomson Reuters noted that its Reuters news division operates independently and separately from the company’s commercial and government-services businesses.
Corporate governance specialists said the vote indicated that major institutional investors did not view the proposal as necessary or were unwilling to challenge the company’s existing approach to managing risks associated with government contracts.
Douglas Chia, president of governance advisory firm Soundboard Governance, said the result suggested shareholders were not interested in sending a broader political signal regarding the company’s relationship with immigration authorities.
One of Thomson Reuters’ largest shareholders, Norway’s sovereign wealth fund, said it opposed the resolution because it did not identify significant shortcomings in the company’s management or disclosure of sustainability-related risks.
Following the vote, Emma Pullman, head of shareholder engagement at the British Columbia General Employees’ Union, said the company had made progress in certain areas of disclosure but argued that additional reporting on law-enforcement-related products would benefit investors.
Pullman said a dedicated assessment of products used in immigration and policing activities could strengthen transparency and demonstrate the company’s commitment to human rights considerations.
The vote highlights the growing tension facing publicly traded companies that provide technology and data services to government agencies, particularly as investors increasingly weigh environmental, social and governance concerns against commercial opportunities and public-sector contracts.
