In the 12 months ending June 30, BlackRock publicly announced its support for 26 out of 399 proposals related to climate change and social issues, accounting for less than 7% of the total. This is a decrease from the previous year, where BlackRock supported 22% of proposals.
BlackRock, a prominent investor in Dublin-listed companies such as CRH, Kerry Group, Kingspan, and Smurfit Kappa, manages trillions of euros on behalf of pension and insurance funds. The company, along with its founder and CEO Larry Fink, has been a strong advocate for incorporating environmental, social, and governance (ESG) standards into corporate reporting and decision-making for the past decade.
Through its significant scale and influence, BlackRock has successfully mainstreamed ESG ideas, which are now prominently featured in the annual reports of stock market-listed companies, including those in Ireland. These reports now extensively cover environmental efforts, diversity and inclusion policies, as well as corporate strategy and financial results.
However, in the United States, BlackRock and the broader concept of ESG have faced increasing backlash from Republican politicians and right-wing media figures in what is often referred to as the ‘War on Woke.’
In its latest report, BlackRock explained that it supported fewer shareholder proposals due to concerns of excessive control and attempts to micromanage businesses. According to Joud Abdel Majeid, the global head of investment stewardship at BlackRock, many proposals lacked economic merit and redundancy, making them unlikely to promote long-term shareholder value.
Although this shift in voting may suggest a potential softening in BlackRock’s approach, it has recently faced scrutiny from Republican finance chiefs in 15 US states. These officials have raised questions about the independence of BlackRock mutual fund managers from the company and have expressed concerns about its investments related to China, coal, and climate change. This can be seen as a direct response against the adoption of ESG priorities.
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