Walmart, Costco Pressured by Investor Group Over Abortion Pills

(Bloomberg) -- A group of faith-based investors are warning some of the largest US retailers including Costco Wholesale Corp. and Walmart Inc. against selling the abortion pill mifepristone.

Companies offering the drug risk reputation and legal repercussions, according to an Aug. 2 letter sent to chief executive officers at the two retail giants, as well as Kroger Co., Albertsons Co. and medical distribution company McKesson Corp. 

The religious group behind the petition owns about $172 million in shares of the five companies. The coalition was led by Boise, Idaho-based Inspire Investing, which manages $3 billion of assets, and includes the investment arm of the Southern Baptist churches and the American Family Association, a Christian fundamentalist group.

Walmart declined to comment while the four other companies didn’t respond to the request.

The letter was in response to the New York City Comptroller’s decision to urge the companies to begin selling mifepristone. The Comptroller, which said it owned more than $1.3 billion in shares of those five companies, warned them of lost revenue opportunities if they didn’t.

A spokeswoman for Comptroller Brad Lander declined to comment. 

Mifepristone is used in more than half of US abortions. In June, the US Supreme Court unanimously overturned a federal appeals ruling that would have barred mail-order prescriptions for the drug. 

CVS Health Corp. and Walgreens Boots Alliance Inc., the two biggest US pharmacy groups, have already agreed to distribute the pills.

The pressure from faith-based groups against the abortion drug is part of a broader effort by conservative groups to push back against progressive investors in areas that include environmental activism, diversity and LGBTQ initiatives. 

“We’re advocating for companies to just stick to their knitting and do a good job for customers and stay out of divisive social issues,” Robert Netzly, CEO of Inspire, said in an interview. “Corporations are understanding that there’s a risk of just going along and caving to these activists.”

The backlash against so-called woke capitalism has led to lawsuits, boycotts and other pressure against companies not to bow to liberal groups. Companies have said they remain committed to DEI, even as they remove references and minimize some programs.

In recent weeks, Tractor Supply Co., Deere & Co. and Harley-Davidson Inc. have come under fire from conservative activists over their stands on social issues. The companies also risk a backlash against the backlash, from progressives.

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