Large Investors Increasingly Expected to Engage on Sustainability
Matters, and Better Understand Emerging ESG Risks
NEW YORK--(BUSINESS WIRE)--
The world’s largest asset manager, BlackRock, has teamed up with
nonprofit sustainability leader Ceres to create guidance for U.S.
institutional investors on engaging with companies and policymakers on
sustainability issues. The guide, 21st
Century Engagement: Investor Strategies for Incorporating ESG
Considerations into Corporate Interactions, includes
tactics and case studies from 37 engagement experts spanning six
countries.
The guide comes amid growing concern in the capitals markets about
global sustainability risks that could materially impact company
performance, including climate change and water constraints like we’re
seeing today in California and Brazil, or human rights tragedies
unfolding globally.
“As a long-term investor on behalf of our clients, BlackRock believes we
have a responsibility to engage with companies on a range of governance
matters, including the material environmental and social impacts of
their operations,” said Michelle Edkins, Managing Director and Global
Head of Corporate Governance and Responsible Investment at BlackRock.
“In our experience, companies that manage all dimensions of the business
to the highest standards are more resilient and generate more
sustainable financial returns over time. We’re encouraged by the efforts
leading companies are making in reporting material ESG risks and
opportunities, which helps shareholders and others understand how
effectively risks are being mitigated and opportunities realized to
protect and enhance long-term economic returns. We hope this guide helps
broaden and deepen company-investor dialogue on the ESG factors that
impact value creation and would like to thank all those who shared their
insights.”
"Every year for the past decade, we have seen an increase in corporate
engagement by institutional investors on sustainability issues – especially
climate change, resource constraints, diversity and human rights – which
create enormous economic risks for both companies and investors," added Mindy
Lubber, president of Ceres. "The number of sustainability-focused
shareholder resolutions continues to rise. We’re also seeing upticks in
other engagement strategies, such as investors meeting with boards,
negotiating with executive teams and asking hard, pointed questions on
earnings calls and at annual meetings. This valuable guide outlines
various ways for investors to boost their engagement with companies on
these issues.”
Showcasing dozens of real-world examples of investor engagement with
companies, contributors cover issues like setting ESG standards in the
marketplace, public policy engagement, collaboration, shareholder
resolutions, board of director engagement, divestment, creating a focus
list, strategies for international engagements, and other topics. The
guide also features a set of ESG-themed questions that portfolio
managers and analysts should be asking of companies in key sectors.
“TIAA-CREF has a long history of quietly engaging with portfolio
companies on ESG risks and we are energized by the positive trajectory
that has developed across the broader landscape over the last several
years. We are pleased to be able to share our experience with others and
look forward to continued mutually beneficial discussions with
companies,” said Bess Joffe, Managing Director of Corporate
Governance at TIAA-CREF.
“CalSTRS’ investment staff reviews not only the financial potential of
investments, but also their social, human and environmental impacts to
the ultimate benefit of our members–California’s teachers. CalSTRS is
pleased to share our experience and to learn from others how to improve
our processes. We applaud BlackRock and Ceres for teaming up on this
guide. It will help inform others of the how and why we investors need
to manage ESG risks,” said CalSTRS Director of Corporate Governance
Anne Sheehan.
To download 21st Century Engagement, visit: https://www.blackrock.com/Governance
or http://www.ceres.org/EngagementGuide.
About BlackRock
BlackRock is a leader in investment management, risk management and
advisory services for institutional and retail clients worldwide. At
March 31, 2015, BlackRock’s AUM was $4.774 trillion. BlackRock helps
clients meet their goals and overcome challenges with a range of
products that include separate accounts, mutual funds, iShares®
(exchange-traded funds), and other pooled investment vehicles. BlackRock
also offers risk management, advisory and enterprise investment system
services to a broad base of institutional investors through BlackRock
Solutions®. Headquartered in New York City, as of March 31, 2015,
the firm had approximately 12,300 employees in more than 30 countries
and a major presence in key global markets, including North and South
America, Europe, Asia, Australia and the Middle East and Africa. For
additional information, please visit the Company’s website at www.blackrock.com
| Twitter: @blackrock_news | Blog: www.blackrockblog.com
| LinkedIn: www.linkedin.com/company/blackrock
About Ceres
Ceres is a nonprofit organization mobilizing business and investor
leadership on climate change, water scarcity and other sustainability
challenges. Ceres directs the Investor Network on Climate Risk (INCR), a
network of institutional investors with collective assets totaling more
than $13 trillion. Ceres also directs Business for Innovative Climate &
Energy Policy (BICEP), an advocacy coalition of dozens of companies
committed to working with policymakers to pass meaningful energy and
climate legislation. For more information, visit www.ceres.org
or follow on Twitter @CeresNews
About 21st Century Engagement
This joint project between BlackRock and Ceres involved the contribution
of 37 experts on engagement, including the largest public pension funds
in the U.S., and several of the country’s largest asset managers.
Contributing authors focused their case studies and advice to primarily
a U.S. audience. The guide is available to investors at no charge.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150528005237/en/
BlackRock:
Ed Sweeney, 1-646-231-0268
Communications Director
ed.sweeney@blackrock.com
or
Ceres:
Peyton
Fleming, 1-617-733-6660
Communications Director
fleming@ceres.org
Source: BlackRock