Too prescriptive: Signals from BlackRock shareholder support for fewer climate change resolutions for 2022

Posted on 05/15/2022

BlackRock is the largest asset manager in the world with a little less than US $ 10 trillion in assets. However, the majority of these assets are in ETFs liabilities. BlackRock confirmed May 10, 2022 that it plans to support under shareholder resolutions on issues such as climate change during the current season of annual general meetings because many of the proposals were too prescriptive.

BlackRock said that its position on climate change risks remain unchanged. BlackRock plans to continue working with listed companies on issues “related to the climate.”

“The nature of some shareholder proposals coming up for a vote in 2022 means that we are likely to support proportionately less this proxy season than in 2021, as we do not view them as compatible with the long-term financial interests of our clients. “, said BlackRock. in an update on investment stewardship.

CEO BlackRock wrote his letter (The Power of Capitalism) in 2022 to CEOs, stating, “Tearing out entire sectors – or simply moving carbon-intensive assets from public to private markets – won’t get the world to net zero. . And BlackRock does not pursue divestment from oil and gas companies as a policy. We have clients who choose to divest their assets while other clients reject this approach. Forward-thinking companies across a wide range of carbon-intensive sectors are transforming their businesses and their actions are an essential part of decarbonizing. We believe that transitioning leading companies presents a vital investment opportunity for our clients and driving capital to these phoenixes will be essential to achieving a net zero world. »

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