After years of poor ESG performance and pressure from activists, private prison operators are facing vigorous divestment and engagement movements and growing business model risk from expanding prison reform policy changes.
Highlights from this research brief:
- JPMorgan said it would “no longer bank the private prison industry.”
- Human toll of private prisons bolsters activist case and prompts federal contract cancellation.
- CalSTRS divests from CXW and GEO, while CalPERS has promised a strategy of engagement.
- Sharp 2017 decline in share price for CXW in tandem with negative ESG performance.