BlackRock Shifts Focus: From ESG Champion to Skeptic

the staff of the Ridgewood blog

Ridgewood NJ, in the evolving world of pension politics, BlackRock has undergone a significant transformation. Once a leading advocate for prioritizing environmental, social, and governance (ESG) considerations over investment returns, BlackRock has notably pulled back from its previous stance. The investment giant, which once spearheaded the push for ESG, now appears more skeptical than many of its peers.

This shift is starkly illustrated by recent data: In the 12 months leading up to the end of June, BlackRock supported just 20 of the 493 environmental and social proposals put forward by shareholders at annual meetings. This equates to a mere 4% of the total, a dramatic decline from its high of 47% in 2021. By last year, BlackRock’s support had already fallen to 7%.

The decline in backing for ESG proposals comes at a time when corporate efforts to tackle climate change and inequality—issues previously bundled under the ESG umbrella—have become increasingly politically charged. BlackRock’s retreat from its earlier position reflects the growing complexities and controversies surrounding these initiatives.

As this trend continues to unfold, we will keep advocating for a balanced approach that prioritizes both responsible investing and strong returns. BlackRock’s shift is a telling sign of the changing landscape in the investment world, where the pendulum may be swinging back toward a more cautious view of ESG.

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