When It Comes to BlackRock’s ESG Pullback, Don’t Take Larry Fink at His Word | RealClearMarkets
BlackRock released self-reported data that their support of ESG through proxy voting in 2023 declined from previous years. Its support of E&S shareholder proposals declined from 43% in 2021, to 24% in 2022, to just 7% in 2023. The firm largely blamed overly prescriptive proposals and other changes to the content of the resolutions themselves instead of claiming an ESG about-face.
However, a look at the data shows that BlackRock s ESG activism may have already accomplished much of its goals and may be why Fink and other activist asset managers are publicly pulling back from ESG.
But don t take Fink at his word.
BlackRock and others high level of ESG proposal support in 2021 and 2022 pushed many companies to take on ESG initiatives that are largely standard practice across corporate America now. This includes reporting GHG emissions, setting net-zero emissions targets, publishing diversity data, meeting board diversity thresholds, and more. Proxy voting was merely the last resort if BlackRock did not get its way through negotiation or engagement meetings as the firm describes it. BlackRock reported nearly 4,000 engagements lobbying the C-suite on diversity and climate issues during the 2021-2022 proxy season. If unsuccessful in private, the investment manager often voted with others against management or board members and supported shareholder resolutions to force behavior.
BlackRock and others became more careful about voting behavior in 2022 as scrutiny increased, but the world s largest asset manager used its might when it mattered. So did State Street. An analysis of the ten most supported resolutions filed by ESG activist coalition As You Sow in 2021 and 2022 (see table) shows that BlackRock supported 80% in 2021 and 70% in 2022, and State Street 70% in both.