Yazmin,
I said “BlackRock is no longer pressuring boards of directors to follow ESG standards, much to the chagrin of activist shareholders”. I should have stuck more closely to the language of my source: “pulling back on its support for US shareholder proposals on environmental and social issues”. Here is the entire article:
An article by Brooke Masters in the Financial Times, September 9, 2022:
"BlackRock has hit back at Republican politicians for what it calls their ‘misconceptions’ about its approach to climate change, arguing that its efforts are ‘entirely consistent’ with a duty to maximise investor returns.
"The world’s largest money manager has been under concerted attack for its use of environmental, social and governance factors in investing. It as become a target because chief executive Larry Fink has been outspoken about the need to address global warming.
"Nineteen state attorneys-general, all of them Republicans, sent a letter to BlackRock last month accusing it of prioritising “activism” over fiduciary duty to their state pensions funds.
“Our states will not idly stand for our pensioners’ retirements to be sacrificed for BlackRock’s climate agenda,” they wrote in the letter, which was led by Arizona attorney-general Mark Brnovich.
"New York-based BlackRock responded this week, writing to the attorneys-general: ‘Climate change is testing the resilience of many industries and businesses. As prudent risk managers and steward of our client’s assets, it is imperative that we seek to understand and assess how these risks and opportunities will impact the companies in which we invest.’
"BlackRock, with $8.5tn in assets under management was also the lone US company on a list of money managers singled out last month for potential divestment by the Texas comptroller because they allegedly ‘boycott’ the fossil fuel industry. Several other states are considering similar moves.
"The money manager denied boycotting fossil fuel, arguing that its $170bn of investments in US energy companies were ‘completely at odds with any notion of a boycott.’
"It said its main goal when it came to climate change was ‘transparency…We ask companies to provide disclosures on material issues that impact their business so that investors can make informed decisions.’
"When voting against management in shareholder resolutions, BlackRock wrote: ‘Our votes are not cast to ‘penalise’ companies. quite the opposite: our votes are cast with a view to achieving the best long-term value for those companies and their shareholders.’
"The asset manager has also been criticised by environmental activists this year for pulling back on its support for US shareholder proposals on environmental and social issues.
"Saying the [US shareholder] proposals [on environmental and social issues] had become too prescriptive, BlackRock voted in favour of them just 24 per cent of the time down from 43 per cent last year.
"BlackRock also rolled out a “voting choice” programme that allows institutional money managers, including state pension funds, to choose how to vote their own shares at annual general meetings. ‘We do not …dictate to companies what specific emission targets they should meet or what type of political lobbying they should pursue,’ BlackRock wrote [to the attorneys-general].
“Brnovich’s office did not respond to a request for comment.”
I referred to this article because it reports on real-world BlackRock corporate actions within the real-world political/ideological context of the debate between Woke and Unwoke. I am not taking BlackRock’s side against Republicans. I am not trying to diminish the evil of ESG by referring to BlackRock’s current “pull back” in support of activist shareholders promotion of it. I am not endorsing BlackRock’s denial of its “boycott of fossil fuels”, or its claim that ESG is in line with maximising shareholder value.
That FT article was the source for BlackRock’s real-world actions that I referred to in my comment. The point I was making is that real-world corporate actions of BlackRock (writing a letter to attorneys-general is a real-world action) are constrained as Larry Fink’s speechifying is not. That point is relevant to my argument that the article “Buying Up Ukraine” was not about Monsanto’s or BlackRock’s real-world actions, but about using them to trigger the (leftist, green) antipathy to America and capitalism to implicate Ukraine in a menacing “military-industrial complex”. There is nothing invidious in foreign investment in Ukraine, but when wicked frankenseed producer Monsanto, or greedy capitalist BlackRock buy land in war-mongering, nazi Ukraine - it’s time to - what? - protest, sit-in, march, call our Congressfolk, to “Stop the War Profiteers”. Suddenly, we are soixante-huitards again.
Your links to Breitbart are not relevant to my argument against anti-Ukraine conspiracy propaganda. They do not show I was “wrong”. They set out the consumerist objection to corporate power to manipulated prices. They might help the Republican attorneys-general legal case against BlackRock’s woke agenda to move away from fossil fuels. But the consumerist argument against raising prices is fundamentally anti-market and anti-profit. Think Elizabeth Warren.The energy industry is already unfree, constrained by cartel and government price-fixing. The legal argument that a corporation’s prime duty is to maximise shareholder value is pro-free market: dividends paid to stockholders demonstrate that the corporation is satisfying all needs: suppliers, work-force, buyers, consumers, tax authorities, investors…