Investing

As fund managers boost shareholder voting power, climate pressure suffers

BlackRock
hapabapa / iStock Editorial via Getty Images

(Mark Hulbert, an author and longtime investment columnist, is the founder of the Hulbert Financial Digest; his Hulbert Ratings audits investment newsletter returns.)

CHAPEL HILL, N.C. (Callaway Climate Insights) — Many climate-friendly investors have the naïve belief that the goals of E, S and G always point in the same direction.

They don’t. Not infrequently, the pursuit of one of this trio of ideals will go against one or both of the other two.

One such occasion is the growing debate over enabling fund and ETF investors to vote the shares they own indirectly in corporate proxy contests. Allowing them to do so would seem to be the very essence of shareholder democracy and good corporate governance. Yet it also will have the unintended consequence of reducing the pressure that climate polluters would otherwise receive from shareholders.

Consider BlackRock’s $BLK Voting Choice” program, which gives the firm’s “clients — who are the true owners of the assets we manage — the option to engage much more directly in proxy voting.”…

Subscribe to Callaway Climate Insights to keep reading this post and get 7 days of free access to the full post archives.

Want to Retire Early? Start Here (Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

 

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.