Asset managers can encourage climate action

BlackRock has a watchlist of companies that are failing on climate, but its engagement and voting practices have yet to significantly reduce emissions – and BlackRock is not moving fast enough.

BlackRock’s engagement strategy needs to shift from disclosure to decarbonization. BlackRock must flex its muscle to encourage and accelerate climate action from the companies it backs.

BlackRock must be transparent about how it votes, which sectors and companies are priorities  on its watchlist, timelines for engagement, and the consequences of insufficient climate action from its portfolio companies.

Working collaboratively, BlackRock could use its influence to organize with other financial firms and make real progress on the systemic problems of climate change.

Voting and engagement drive change

BlackRock has unmatched power to change how its portfolio companies operate, engage with local communities, and address climate risks. 

The Big Three asset managers collectively vote on 25% of S&P 500 company shares.

(BlackRock, Vanguard, State Street Global Advisors)

In 2020, BlackRock & Vanguard voted overwhelmingly against climate-critical resolutions at S&P 500 companies.

In 2020, BlackRock’s voting record for resolutions requesting climate disclosure regressed, from 25% in 2019 to 14% in 2020.

BlackRock supported 11% of climate votes in 2020, despite joining CA100+.

(the second-worst voting record among CA100+ members)

n 2020, 17% of climate resolutions would have passed if one or more of the Big 3 asset managers had supported them.

Why we need engagement

People are suffering

BlackRock investments threaten human rights and the rights of Indigenous peoples around the world. The companies it backs routinely undermine the liberties of traditional landowners, local communities, and Indigenous peoples.

Climate change is a complex issue that demands integrated action. This is just one of three core problems that BlackRock must address now.

Who we are

We are a global network of NGOs, social movements, grassroots activists, finance researchers, and shareholder advocacy organizations. We’ve come together to push asset managers like BlackRock to align their business practices with climate solutions, instead of continuing to fund climate destruction.

FAQs

Answers to common questions about how BlackRock and the finance industry fuel climate change and environmental destruction.

We applaud BlackRock’s stated commitment to sustainability.

But Larry Fink and the financial industry must recognize that small steps and talk are not enough. Our future depends on bold, decisive action. Asset managers have the power to make immediate changes – and the responsibility to implement these feasible solutions.