This article was first published on Proxy Insight Online on October 25, 2021. For more information about the product, click here.
BlackRock published its global Q3 2021 stewardship report on October 22, highlighting how the fund manager is gearing up to engage with an increasing number of companies on climate change in the coming season.
The world’s largest fund manager engaged with more than 570 companies in Q3 2021, 332 of them on environmental issues.
The number of environmental-related engagements with portfolio companies is likely to increase, as various reporting initiatives, such as the International Financial Reporting Standards (IFRS) Foundation, work to establish a global, baseline set of sustainability reporting standards, BlackRock said.
BlackRock’s engagement with U.S.-listed companies decreased by 13%, compared to Q3 2020, while engagement with Asia-Pacific and European-listed companies increased by 3% and 26%, respectively.
The significant increase in engagement with European-listed companies was largely attributable to failure to align executive compensation with broader stakeholder experiences.
The Shareholder Rights Directive II also meant an increased number of shareholders were given the ability to vote on executive compensation structures for the first time.
BlackRock voted against management on one or more proposals at 39% of global shareholder meetings, the report revealed.
In total, BlackRock supported two of the five environmental and social shareholder proposals subject to a vote in Q3 of 2021.
The fund manager supported 29.8% of environmental shareholder proposals globally in the 2021 proxy season, compared to 6% the previous season, according to Proxy Insight Online data.