BlackRock's ESG Support Experiences Significant Decline in 2023-24 Proxy Season
BlackRock's Diminished ESG Support
In a telling shift, BlackRock's backing for ESG initiatives has seen a dramatic drop, supporting just 20 out of 493 shareholder proposals on environmental and social matters, representing only 4% of proposals during the 2023-24 proxy season. The company's support peaked at 47% in 2021, revealing a troubling trend towards skepticism amidst rising political tensions.
Political Pressure and Internal Challenges
This decline has occurred as BlackRock faces backlash from both conservative and liberal groups. Critics on the left argue that the firm has not enforced sufficient action towards decarbonization, while conservatives accuse it of engaging in 'woke capitalism.' Joud Abdel Majeid, head of investment stewardship, noted that many proposals were overly prescriptive and lacked material merit.
Voting Patterns and Implications
- BlackRock voted against 88 conservative-led anti-ESG resolutions, impacting overall corporate responses.
- The firm supported 21% of governance proposals, up from 11% last year.
- The median support for ESG proposals has drastically lagged, with Russell 3000 companies averaging only 18%.
Global Engagement
Despite these challenges, BlackRock's global backing for company proposals remains robust, supporting 88% of them, including major votes related to executive compensation. This demonstrates its strategic focus even as its direct support for ESG issues falters.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.