BlackRock says targeted critical climate votes on energy companies

BOSTON: Top asset manager BlackRock Inc said it voted against management at 53 companies worldwide, most of them energy companies, for "lack of progress" on climate concerns during the 2020 proxy season, and urged another 191 companies to take faster action.

The report was sent by a company spokesman on Tuesday. Under pressure from clients and activists, BlackRock had previously said it would put a new focus on climate change concerns after supporting shareholder resolutions on the topic only about 10% of the time in the past.

The tally in Tuesday's report included votes that BlackRock cast for resolutions and against directors, breaking with management recommendations, and was not directly comparable to the 10% figure.

But a BlackRock spokesman said via e-mail its critical climate-related votes at 53 companies worldwide this year would be comparable to critical votes it cast at six companies in 2019, indicating a tougher overall approach.

Of the 53 companies, 37 were energy companies with a market capitalization of $408 billion, BlackRock said, and an additional seven were utilities with a $50 billion market capitalization.

In its report BlackRock cited the critical votes it cast against directors at ExxonMobil Corp this year, which were previously disclosed, for reasons including "Exxon's failure to have clear, long-term greenhouse gas reduction targets."