Last week, BlackRock Inc. reduced its support for shareholder proposals associated with environmental, social and governance (ESG) issues to 4.1%. The multinational investment company made the announcement in its recent AGM, revealing that most proposals had been declined.
As of June 2024, 493 resolutions had been submitted, which was an increase from the 455 submitted last year. Last year, the company supported 6.7% of environmental and social-related resolutions, which makes the recent announcement quite a decrease, especially when compared to the support it gave proposals in the 2020–2021 period.
Morningstar Sustainalytics’ director of investment stewardship research, Lindsey Stewart, stated that while the reduction in support was probably marginal, it meant that the company supported 10 fewer resolutions in 2024 than in 2023. BlackRock revealed that the number of resolutions was driven even lower by the increasing number of proposals focused on making it compulsory for companies to terminate their plans to manage sustainability risks.
The company also revealed that, in total, it supported only 20 of the proposals submitted. Of this number, 4 were associated with climate and natural capital, involving disclosures at Wingstop, Jack in the Box, Denny’s Corporation and Berkshire Hathaway. Some of the resolutions BlackRock supported also focused on improving the rights of minority shareholders.
In its evaluation, BlackRock determined that most of these proposals lacked economic merit and weren’t focused on promoting shareholder value in the long-term. It added that the majority of these proposals centered on business risks that companies could already address, which made them unnecessary.
The reduction in support comes as the company’s efforts to address inequality and climate change become plagued with political issues. How the company handles issues to do with ESG has been met with criticism in the recent years, particularly by Republican legislators, who have accused several companies of engaging in “woke capitalism.”
Additionally, climate advocates claim that investors haven’t championed enough for decarbonization.
BlackRock noted that it was now focused on financial resilience, adding that its success would depend on how it handled issues as countries transitioned to low-carbon economies worldwide. Currently, BlackRock has more than $10 trillion in assets under management. This makes up roughly 40% of the GDP of America.
The company, which recently released its 2023 disclosure report, provides a broad investment platform designed to every client’s objectives and needs. This platform includes more than 450 sustainable funds around the globe.
As of Dec. 31, 2023, BlackRock managed $802 billion across its sustainable investing platform on behalf of its clients.
Away from asset-management companies, various entities such as Coyuchi Inc. are making good progress incorporating different aspects of ESG in their operations. It is only a matter of time before the positive effects of these programs snowball into major gains.
NOTE TO INVESTORS: The latest news and updates relating to Coyuchi Inc. are available in the company’s newsroom at https://ibn.fm/COYU
About ESGWireNews
ESGWireNews (“ESG”) is a specialized communications platform with a focus on the Environmental, Social and Governance (ESG) sector and public companies committed to sustainable corporate practices. ESGWireNews is one of 60+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, ESG is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, ESG brings its clients unparalleled recognition and brand awareness. ESG is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from ESGWireNews, text “ESG” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.ESGWireNews.com
Please see full terms of use and disclaimers on the ESGWireNews website applicable to all content provided by ESG, wherever published or re-published: https://www.ESGWireNews.com/Disclaimer
ESGWireNews
Los Angeles, CA
www.ESGWireNews.com
310.299.1717 Office
Editor@ESGWireNews.com
ESGWireNews is powered by IBN
