BlackRock Uses Meeting of Shareholders to Insist on Following Version of “Business Objective” Framework, Driving Environmental Priorities

Shareholders have also put pressure on the asset manager
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for a plan on how you plan to implement the business roundtable “New statement on the object of a company.” The preliminary vote on this question obtained 3.85% in favor, which exceeds the threshold necessary to present this new resolution in 2021.

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Defense groups have pressured the fund giant to turn words into stronger actions.

In his presentation of the proposal, Andrew Behar, CEO of the non-profit organization As You Sow, which promotes investor action on sustainable business practices, said: “We agree with the Forum global economy, the Mesa Business Round and BlackRock on the way forward. This requires alignment of words and actions. Historically, however, BlackRock has voted in favor of almost all the exorbitant salaries of CEOs and against almost all climate resolutions. This cognitive dissonance is worrying. “

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Fink also said the company should represent the views of a wide range of customers.

“We try to make sure that we represent the ideas, the needs of our customers. From our customers in a particularly sloping part of the country, compared to a customer in another particularly sloping part of the country, “said Fink.

As You Sow said, Fink, on the call, seemed to endorse the proposal saying, “The ability of a business to reach its full potential and deliver to all stakeholders (its employees, its customers , its shareholders and other communities) is imperative, you cannot have long-term profitability without it … and we believe BlackRock is already operating in accordance with principles and commitments consistent with the new objective of the trade roundtable.

However, Fink did not provide details on the implementation that appeared to believe that the new goal was already implemented, ignoring the many contradictions between the words and the actions highlighted in the proposal, said Behar .

A conservative advocacy group promoting free enterprise also struggled with the Fink booth at the shareholders’ meeting.

“BlackRock CEO Larry Fink constantly brags about his commitment to advancing environmental, social and governance (ESG) causes as part of a new” stakeholder capitalism “. However, when I asked him questions about the bilateral nature of these hollow touts in the context of BlackRock’s promotion of Chinese investments lacking ESG management, he could not answer the question, “said Justin Danhof, general counsel for the National Center research on public policies and director of your free business project.

Earlier this year, BlackRock outlined tougher policies for influential votes on power it issues at annual spring meetings, emphasizing the need to report to companies on issues such as their emissions and water pollution.

BlackRock also said in recent days that some companies have told it that certain non-financial projects, such as sustainability reports, have been “prioritized” due to the economic shutdown of COVID-19.

“We recognize that in the short term, businesses may need to reallocate resources to meet immediate priorities in these uncertain times,” said the BlackRock report. BlackRock said it “would expect a return to companies that focus on sustainable materials management and timely reporting.”

Also at Thursday’s meeting, BlackRock said its 16 director candidates received strong support from investors at their annual meeting on Thursday, where CEO Laurence Fink defended the size of the big board of directors of the company.

The company said each candidate received around 94% investor support. The same proportion voted in favor of paying company executives at the teleconference meeting, the company said.

BlackRock’s board of directors is larger than that of rival financial firms like State Street Corp. and JPMorgan Chase & Co
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, each with 11 members.