Catholic investors are urging a major shipping company to account for the legal risk of carrying abortion drugs across state lines.
At FedEx's annual meeting on Sept. 28, the Diocese of Fort Worth, Texas, sponsored a shareholder proposal asking the company to analyze the regulatory and reputational risks of continuing to ship the abortion pill mifepristone into states where abortion is illegal.
"Given its prevalence as one of the largest shipping services in the United States, we wanted to highlight the risk that FedEx may be posing for its shareholders if the Comstock Act is enforced and it continues to ship mifepristone, one of the key drugs used in the abortion pill regimen," Bishop Michael Olson wrote in a letter to other Catholic bishops, asking them to vote for the proposal if their dioceses own shares in the company.
Olson told EWTN News he posted the letter on a bishops-only website of the U.S. Conference of Catholic Bishops. Citing the U.S. bishops' Socially Responsible Investment Guidelines, he called the proposal "part of the process of exercising stewardship over" the diocese's public equities and "an opportunity to further the culture of life."
The proposal asked FedEx's board to report within a year on how it oversees the legal, regulatory, and reputational risks of transporting mail-order abortion drugs. It did not ask the company to stop shipping the drug. The board opposed it. Final votes had not been tallied when the diocese spoke with EWTN News.
The issue stems from the Comstock Act and the Biden Justice Department's interpretation of it. Passed by Congress in 1873, the law criminalized using the postal system to send obscene, lewd, or indecent materials; information or devices related to contraception; and items or information intended to induce abortion.
More than 20 states restrict or prohibit abortion-inducing drugs within their borders. In December 2022, the Department of Justice under the Biden administration issued a memorandum opinion stating that the Comstock Act "does not prohibit the mailing of certain drugs that can be used to perform abortions where the sender lacks the intent that the recipient of the drugs will use them unlawfully."
The Food and Drug Administration, meanwhile, stopped enforcing its in-person dispensing rule for mifepristone in April 2021 for the rest of the COVID emergency, and in December of that same year said it would permanently drop that requirement, allowing the drug to be prescribed and shipped to a patient without an office visit.
"Nevertheless, the Comstock Act is still law and could be interpreted and enforced more vigorously by this or a future Administration," Pia de Solenni, who presented the proposal on the diocese's behalf, said in a letter that accompanied Olson's.
In that letter, she told the bishops: "Your institution has a unique opportunity to leverage its ownership of FedEx to ask for a risk analysis that not only protects the value of the company but also disrupts the delivery of a drug regimen that harms women and destroys unborn human life." She called the proposal a "unique opportunity to slow down the distribution" of abortion drugs.
Olson wrote that "Sadly, since the overturning of Roe v. Wade with the Dobbs decision in 2022, abortion rates in the United States have increased about 20%, due largely to the government's decision to relax the rules around the distribution" of abortion drugs.
De Solenni, who has a doctorate in moral theology and is the former chancellor of the Diocese of Orange, California, is vice president of corporate engagement at IWP Capital, a for-profit firm that does screening, proxy voting, and corporate engagement for institutional investors, consultants, and asset managers.
She said the company "only does corporate engagement with a Christian understanding of human flourishing" based on the bishops' Socially Responsible Investment Guidelines, first published in 1991, revised in 2003, and updated in 2021.
She told EWTN News that she spoke only for about three minutes during the 20-minute meeting and the company responded for about three minutes.
She said the diocese's proposal was the only one to which the company responded. "It is challenging to get a proposal on a ballot in the first place," she said. And once it is there, "it is very unusual for companies to respond to shareholders. They usually let proposals die."
She called the effort a "moral victory."
"If Christian institutional investors would show up, we would be changing these companies," she said. "If we all voted our proxies, if these companies were hearing from us, they would have different leadership and would make different decisions."
De Solenni said in a separate engagement with Costco, over whether its stores would carry the abortion pill, the first reason the company gave for not carrying it was that "they were unsure about the Comstock Act."
"Our long-term strategy," Olson said, is "responsible stockholding, keeping our investments clean and in line with the Gospel and the integrity of the Church's teaching."
He said that Bishop Daniel Thomas of Toledo, Ohio, chairman of the bishops' Committee on Pro-Life Activities, was supportive of the proposal, which Olson said is "part of our whole strategy as a diocese to live by Rerum Novarum," Pope Leo XIII's encyclical published in 1891.
Whatever the final tally, he said the diocese would keep "continued vigilance, and the continued exercise of the prophetic voice in these areas that are overlooked and even taken for granted." As an institutional investor, he said, the diocese is "very scrupulous about this" and tries to avoid "formal cooperation with evil, or even material cooperation with evil. We certainly check twice."
On Sept. 30, Louisiana Attorney General Liz Murrill, joined by the attorneys general of Alabama and Arkansas, filed two lawsuits over abortion pills mailed into states that restrict abortion: one at the Supreme Court against shield laws in New York, California, and Massachusetts, and another against providers accused of shipping the drugs.
