BlackRock votes against climate proposals

In its latest proxy voting report, BlackRock emphasized its commitment to enhancing client participation in corporate shareholder votes while addressing ongoing Republican criticism of environmental, social, and governance (ESG) investing. The asset management firm revealed that it supported only a small fraction of environment-related proposals during the 2023-24 proxy voting year, despite these proposals constituting the majority of submissions, which increased by 13% from the previous year. The report indicated that many of these proposals were deemed overreaching or lacking in economic merit, with a significant number addressing risks already managed by companies. BlackRock's investment stewardship program showed a decline in support for environmental and social proposals, dropping to 4% from 6.5% the previous year. This reduction coincides with heightened scrutiny from Republican lawmakers, who are investigating financial firms for potential antitrust violations related to their ESG initiatives. Judiciary Committee Chairman Jim Jordan has actively sought information from over 130 companies regarding their engagements with green investor groups and has subpoenaed BlackRock and State Street Global Advisors for relevant documents. Conversely, BlackRock reported an increase in support for corporate governance proposals, particularly those aimed at enhancing minority shareholders' rights. The firm also highlighted its efforts to empower clients by allowing them to vote directly on shareholder proposals, expanding its voting choice program within its largest exchange-traded fund. Additionally, BlackRock has introduced a climate and decarbonization stewardship option for select funds, managing $150 billion in assets as of July.