The Big Three & ESG: A Guide to BlackRock, State Street & Vanguard Proxy Voting Policies & Guidance on Key ESG Issues (2024)

FAQs

What is BlackRock's stance on ESG? ›

Amidst this global trend, BlackRock, the world's largest asset manager, has taken a bold step by transitioning its investment strategy from ESG investing to a broader approach called transition investing. This move has significant implications not only for BlackRock but for the entire financial industry.

Political and Ideological Bias: Critics argue ESG introduces political and ideological biases into business decisions, aligning with a progressive agenda. Impact on Financial Performance: There's concern that prioritizing ESG criteria could detract from a company's financial performance.

So it's good riddance to ESG investing, hello to transition investing. Blackrock's investment focus did not change. But its woke push for racial equity and social justice in investment and stewardship activities did. The climate fear mongers are pressuring Biden to ban natural gas exports.

BlackRock votes on proxy issues when our clients authorize us to do so. We offer certain clients who prefer their holdings to be voted consistent with specific values or views Voting Choice.

An ESG controversy case is defined as either an event or an ongoing situation in which company operations and/or products allegedly have a negative environmental, social and/or governance impact.

BlackRock was founded in 1988 by Larry Fink, Robert S. Kapito, Susan Wagner, Barbara Novick, Ben Golub, Hugh Frater, Ralph Schlosstein, and Keith Anderson to provide institutional clients with asset management services from a risk management perspective.

The people who do not support ESG are the ones who want to make money.” In a nutshell, “opponents to ESG argue that consideration of factors undermines corporate competitiveness and will lead to lower returns for shareholders,” says Maloney.

Failing to make ESG part of the company culture

If ESG efforts are not overly expressed as part of the company's values and with clear goals that can be measured, they can cause disruptions and loss of productivity.

In the current environment, ESG risks pose one of the greatest threats to public companies' abilities to deliver predictable results. A recent Bank of America study calculated that 24 ESG incidents in the period 2014–2019 cost U.S. public companies over $500 billion in market value.

Our reputation for integrity is one of our most important assets. We hold ourselves to standards that not only meet those required by the laws and regulations that apply to us, but also to our principles, which are rooted in exceeding our clients' expectations.

Who owns the Vanguard Group and BlackRock? ›

Who Owns BlackRock? BlackRock is publicly owned, with its shares held by various shareholders, including institutional investors like Vanguard Group and State Street Corporation and individual shareholders. The specifics of these shareholders can change over time.

Contrary to popular belief, BlackRock doesn't directly own shares in major corporations, single-family homes, or infrastructure. It manages these investments in its funds and other investment products on behalf of clients.

Another BlackRock Inc. executive is joining the Biden administration, adding to the close ties between the Wall Street heavyweight and the seat of power in Washington.

Laurence D. Fink is Chairman and Chief Executive Officer of BlackRock. He and seven partners founded BlackRock in 1988, and under his leadership, the firm has grown into a global leader in investment and technology solutions.

Who owns BlackRock? BlackRock is not owned by a single individual or company. Instead, its shares are owned by a large number of individual and institutional investors. The biggest institutional shareholders such as The Vanguard Group and State Street are merely custodians of the stock for their clients.

Our clients' interests come first.

The fiduciary mindset is the bedrock of our identity. It reflects our integrity and the unbiased advice we give our clients. And it's what inspires us to come to work every day and help people build better futures.

BLACKROCK ADMITS ESG ADVOCACY COULD PROVE BAD FOR BUSINESS

"BlackRock's climate-disclosure reports demonstrate that BlackRock is actively working to fulfill its NZAM obligations by implementing a 'sustainable' net-zero investment strategy across 'all assets under management,'" Watson's order states.

BlackRock has abandoned the ESG acronym - rebranding it as 'transition investing', in order to refine sustainable investment strategy, and focus solely on the environmental component.