Microsoft Corp., a staple of environmental, social, and corporate governance (ESG) investment funds, is being called out by a group of shareholders for what they say is its poor track record on tax transparency.

Investors managing more than $350 billion in total filed a resolution demanding that Microsoft report in line with the Global Reporting Initiative Tax Standard, according to a statement from the group on Tuesday. The resolution also calls on Microsoft to disclose its tax and financial information on a country-by-country basis.

"Technology is a sector that has historically been characterized by tax avoidance, particularly for large multinationals like Microsoft," said Katie Hepworth, responsible tax lead at Pensions & Investment Research Consultants Ltd. (PIRC), which coordinated the resolution. The risk of regulatory "investigation and intervention" is a particular concern for investors, Hepworth said in a statement.