BlackRock, Ceres Launch Investor Guide on US Corporate Engagement
May 28 2015 - 9:00AM
Business Wire
Large Investors Increasingly Expected to Engage
on Sustainability Matters, and Better Understand Emerging ESG
Risks
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, 1-646-231-0268Communications
Directored.sweeney@blackrock.comorCeres:Peyton Fleming,
1-617-733-6660Communications Directorfleming@ceres.org
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