BlackRock

I’m having an exciting week with Preventable Surprises. I’m interviewing the largest asset owners and managers in the U.S. to have them explain their votes on shareholder resolutions addressing climate change. Shareholders have asked BP, Shell, Statoil, Exxon, and Chevron to publish an annual assessment of the long-term portfolio impacts of a two-degree scenario. That is, the COP21 agreement in Paris set a firm goal of reducing greenhouse emissions enough to lock in global warming of no more than 2 degrees Celsius above pre-industrial levels. Each country has to issue regulations to bring its emissions in line with the goal.

The shareholder resolutions ask each company to address the risk of stranded assets--i.e. the reserves of coal and oil that could be unusable once countries take action. These measures gained the support of management at BP, Shell, Statoil and won nearly 100% support from investors. Exxon and Chevron opposed the resolutions and only 40% of voters backed them. This led Preventable Surprises into launching the Missing 60 campaign. Where did the other 60% go?

The votes were made public by the SEC on August 31. I’ve been waiting for voting proxy firms to feed me the list of the Missing 60. I’ve been calling the big firms all week trying to get interviews. Nothing but stonewalling at many, including my former employer. But I had a long interview today with a senior executive at BlackRock, the largest asset manager in the world. It was a bit of a coup.

After spending years asking politicians and investment executives questions that I often have zero or little interest in, it is extremely rewarding to ask questions that I care deeply about and to push executives to defend positions that I think are indefensible. We had a very cordial discussion, I certainly understood where they are coming from, and I tried to convey why I think they’re wrong. It was freeing to represent an NGO and not have to maintain a neutral demeanour as a reporter. I’m looking forward to writing an article that I hope will be of some use in calling the Missing 60 to account. The article will be published on Responsible Investor’s website. I have no idea how many people read it, but it has enough clout that I got the interview with BlackRock.

Now if I could reach BNY Mellon, Vanguard, Goldman, State Street, etc. The latter two voted with the 40%, so they get a gold star.
The former two are with BlackRock on the wrong side of history.
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