Posted on by Christopher K. Merker, Ph.D., CFA

Biggest US index funds oppose most climate proposals in shareholder votes (CNBC)

https://www.cnbc.com/2019/10/08/biggest-us-index-funds-oppose-most-climate-proposals-in-shareholder-votes.html

  • Votes on climate-related shareholder resolutions often take center stage at corporate annual meetings, though seldom draw support from the two top U.S. index fund firms, BlackRock and Vanguard Group.
  • BlackRock and its top rivals have not put forward any proposals of their own since at least 2001, according to research firm FactSet.
  • The top index fund firms say they prefer to address issues they have with portfolio companies, including those related to climate change, in private talks with executives rather than through shareholder votes.

Author: Christopher K. Merker, Ph.D., CFA

Christopher K. Merker, PhD, CFA, is a director with Private Asset Management at Robert W. Baird & Co. He holds a PhD in investment governance and fiduciary effectiveness from Marquette University, where he has taught the course “Sustainable Finance” since 2009. Executive director of Fund Governance Analytics (FGA), an ESG research partnership with Marquette University, he is a member of the CFA Institute ESG Working Group, an international committee currently exploring ESG standards, publishes the blog, Sustainable Finance, which covers current topics around governance and sustainability in investing, and is co-author of the book, The Trustee Governance Guide: The Five Imperatives of 21st Century Investing.
Twitter Facebook Linkedin