Read on Twitter
This is a really interesting move from BlackRock, especially because of what it could mean for participation in DC-based trade associations, which don't always act in their own members' interests, let alone the public's https://www.politico.com/newsletters/politico-influence/2020/12/10/cassidy-aide-heads-downtown-792202
BlackRock, which is the largest single shareholder in many if not most public companies, has government-like influence at this point on corporate behavior. One example: A demand for carbon reduction plans, in its 2021 expectations for portfolio companies. https://www.blackrock.com/corporate/literature/publication/our-2021-stewardship-expectations.pdf
When activist shareholder groups tried to propose a proxy resolution asking for the same from a big fracking company, the SEC agreed with the company and ruled the resolution out of bounds. https://www.cnn.com/2019/01/30/investing/activist-shareholders/index.html
But BlackRock doesn't have to introduce a resolution to get results -- it can just put companies on notice that not complying might have consequences.
BR does say, however, that it's voting more often for ESG resolutions, and that strong support usually leads to action.
BR does say, however, that it's voting more often for ESG resolutions, and that strong support usually leads to action.
Is this kind of market power a problem, you ask, despite what looks like a movement towards taking climate seriously after years of pressure??
Quite possibly! Read @steelewheelz
for more on that. https://www.economicliberties.us/wp-content/uploads/2020/11/Working-Paper-Series-on-Corporate-Power_8_FINAL.pdf
Quite possibly! Read @steelewheelz
for more on that. https://www.economicliberties.us/wp-content/uploads/2020/11/Working-Paper-Series-on-Corporate-Power_8_FINAL.pdf
