BlackRock takes firm action on companies' sustainability disclosures

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BLACKROCK, the world's largest asset manager, has taken a firm stance in its pivot towards sustainability. Read more at The Business Times.

"Companies in Asia focus on issues like value creation and growing profits, and sustainability is generally not a priority particularly with the board.

BlackRock is an original member of the TCFD Board and a member of the Investor Advisory Group of the SASB. The report by BlackRock Investment Stewardship is an update of the actions it has taken to give greater teeth to its sustainability commitment. Last year, BlackRock was called out in various reports for a poor voting record in support of shareholder resolutions.

The report also framed BlackRock's two main voting actions - holding directors accountable and supporting shareholder proposals - in the context of maximising shareholder value. Both, it said, are valuable tools in the stewardship toolkit. The report singles out two Asian companies. BlackRock wrote to the CEO of Korea Electric Power Corp to raise concerns over planned investments in three coal-fired power plants in Vietnam and Indonesia. In subsequent dialogue with the company, it aims to discuss the strategic rationale for the company's involvement, as the projects appear to be"misaligned with its energy transition commitments".

 

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