Sweden’s buffer funds and Denmark’s AkademikerPension are some of the pension funds that have put pressure on Spotify, the Swedish streaming service listed on the New York Stock Exchange, by demanding an explanation for allowing controversial content on the platform.

The latest controversy relates to content by Andrew Tate, the contentious social media personality, selling courses on the exploitation of women. The courses, which were still on the platform last week, have now been removed. Spotify did not respond to calls to explain how this could happen and whether they have safeguards put in place to ensure it does not happen again.

A Change.org online petition directed at Spotify co-founders Daniel Ek and Martin Lorenzon, started on 27 February, had garnered over 100,000 signatures by last week. It demanded Spotify remove the content.

Dialogue with Spotify

Jenny Gustafsson, head of the AP Funds’ Council on Ethics, said: “We have been in dialogue with Spotify regarding the current incident and they have informed us that the content has been removed. AP expects content companies, such as Spotify, to take responsibility for the content on their platform and take necessary action when required. Spotify has previously confirmed that they have a platform policy and processes to ensure that it is followed. In this case, they have acted by removing the content.” 

Jens Munch Holst, chief executive officer of AkademikerPension, said: “Regarding Spotify, we will investigate the situation further and ask our engagement provider to bring these concerns to the company.”

He emphasised AkademikerPension takes allegations of harmful or unethical practices seriously as a responsible investor.

Munch Holst explained that when controversies arise, the first stage is dialogue to understand the situation, encourage transparency and assess the steps being taken to address the issue. “If a company fails to take adequate action over time the fund evaluates its next step, which may include escalating engagement or reassessing our investment position,” he added.

Academics look to exclude Tesla

The last option has now also been used for Tesla, the electric car manufacturer, which is being excluded from the AkademikerPension’s portfolio.

Munch Holst said the fund’s patience had run out with Tesla and listed three main reasons for the move: opposition to employee labour rights and a long history of union opposition and workplace discrimination; the challenges Tesla faces regarding board independence; and Elon Musk aligning his views with controversial politicians and spreading misinformation.

Munch Holst added: Tesla’s board gets one last chance to show that it is ready to listen and change course. This will happen at the company’s general meeting in June, where AkademikerPension has submitted a shareholder proposal regarding employees’ rights to form and join unions. And the case is clear: If the proposal is voted down, we will exclude the company.”

In practice, the exclusion means AkademikerPension would sell its remaining 200 Tesla shares and would not invest again until the exclusion is lifted. Munch Holst expressed hope the fund would be able to invest again, but that would require “some fundamental and structural changes, which I am not immediately optimistic will take place in the near future”.

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