Top asset managers block pro-climate proposals
Source: Middle East Insurance Review | Mar 2023
Nearly 50 environmental and social (E&S) shareholder proposals would have won majority support in 2022 if asset managers including BlackRock, State Street and Vanguard had voted for them, according to a new analysis.
A new report by UK-based responsible investment group ShareAction analysed how 68 asset managers cast their ballots for 252 E&S resolutions last year. This showed that the four largest investors voted in favour of 20% in 2022 compared with 32% in 2021.
Backing for shareholder resolutions at energy firms dropped even faster year-on-year. For example, BlackRock supported 16% of environmental resolutions at energy companies in 2022, compared with 72% in 2021. ShareAction speculated that the drop-off could be due to asset managers’ reluctance to confront energy companies in light of record profits.
Resolutions that would have pushed Chevron, ConocoPhillips, Philips 66, and Valero to set Paris-aligned emissions reduction targets were among those that could have passed if they were supported by the top asset managers.
ShareAction’s head of financial sector research Claudia Gray said, “Most of the world’s largest asset managers are not consistently using their voting rights to address the multiple environmental and social crises the world is facing.”
Ms Gray said, “Asset managers must strengthen their voting policies, ideally through a commitment to ‘comply or explain’, meaning default support for resolutions with positive environmental and social impacts, and issuing a public explanation when votes are not cast in favour.” M