By Ross Kerber (Reuters) -BlackRock, the world’s largest asset manager, said on Thursday it had resumed meeting with the leaders of its portfolio companies after reviewing new guidance from the U.S. Securities and Exchange Commission. In a statement sent by a representative, BlackRock confirmed it had temporarily paused the talks while it assessed the guidance, […]
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BlackRock resumes stewardship talks after reviewing new ESG guidance
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By Ross Kerber
(Reuters) -BlackRock, the world’s largest asset manager, said on Thursday it had resumed meeting with the leaders of its portfolio companies after reviewing new guidance from the U.S. Securities and Exchange Commission.
In a statement sent by a representative, BlackRock confirmed it had temporarily paused the talks while it assessed the guidance, but has now resumed the ‘stewardship engagements.’
In new materials posted on its website last week the SEC required more disclosures from fund firms when they pressure portfolio companies over certain environmental, social or governance (ESG) matters.
The move by the SEC, now led by an appointee of U.S. President Donald Trump, is seen as a way to give corporate leaders more power over investors on matters ranging from climate questions to governance issues such as executive compensation or board structure.
BlackRock, which manages some $11.6 trillion in assets and is known for its passive funds and ETFs, has focused attention on ESG matters with financial implications. In recent years, however, it has pulled back from supporting ESG-focused shareholder resolutions, calling many unnecessary.
In the statement, BlackRock said that it “does not use engagement as a way to control publicly traded companies.” The New York firm also said “we are complying with the new requirements including by highlighting our role as a ‘passive’ investor at the start of each engagement.”
(Reporting by Ross Kerber; Editing by Clarence Fernandez and Muralikumar Anantharaman)