RECEIVE OUR RESEARCH UPDATES

We'll send you our must-read research updates and latest articles. 

SALES OFFICE
71-75 Shelton Street
Covent Garden
London
WC2H 9JQ
United Kingdom
UK CLIENT SUPPORT
& RESEARCH CENTRE

Pembroke House

Llantarnam Park Way

Cwmbran, NP44 3AU

United Kingdom

US OFFICE
333 Albert Ave.,
Suite 430
East Lansing
MI 48823
United States
CONTACT INFORMATION
support@leadersarena.global
Europe: +44 20 3884 0310
US & Canada: +1 517 325 2310
  • LinkedIn
  • Twitter

Copyright Leaders Arena Limited © 2020 • View our Privacy Policy

Leaders Arena Limited is a registered company in England and Wales, Company Number 10242863, headquartered at 71-75 Shelton Street, Covent Garden, London, WC2H 9JQ, United Kingdom

  • Editorial Team

BlackRock ESG priorities in 2017




BlackRock to focus on company transparency around key ESG issues

BlackRock's engagement priorities highlight their continued focus on ESG

With $5.1T in assets, BlackRock’s 30-person Investment Stewardship team engages with approximately 1,500 companies each year on ESG. BlackRock has highlighted five areas of focus for their engagement priorities for 2017-2018. The New York City-based firm has stated that Environmental, Social, and Governance issues are integral to their investment stewardship activities.

BlackRock takes a long-term view to its approach, looking for progress over time. Low, or bare minimum disclosure on any of the below topics would be a red flag and potential trigger for engagement with listed companies in their portfolios:

Governance: overall board accountability which includes the make-up of the board and the process for evaluating performance and skills; special focus on diversity and full-board expertise on topics with clear business-specific risks (such as climate change)

Long-term corporate strategy: clear accountability at the board level for the strategic plan, including transparency on tracking progress and challenges faced

Compensation that promotes long-termism: clearly demonstrated link of performance metrics that incentivize based on the long-term corporate strategy

Disclosure of climate risks: encourages use of Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) framework for disclosing how climate change presents risks and opportunities to the business; this includes focusing disclosure on the areas of governance, strategy, risk management and metrics and targets

Human Capital Management: looks for board accountability and clear strategy on how a company attracts and retains a stable and diverse employee base and maintains positive health and safety, labor relations, supply chain standards, etc.

Leaders Arena Recommendations for IR: While this series highlights BlackRock’s priorities, the issues are a good indication of what other leading responsible investors may also be focused on as they continue to demand transparency and accountability on ESG. Therefore, it pays for IROs to INTEGRATE ESG in their regular communication with investors and ENGAGE with key responsible investors.

Sources:

  • Exploring ESG: A Practitioner’s Perspective; https://www.blackrock.com/corporate/en-us/literature/whitepaper/viewpoint-exploring-esg-a-practitioners-perspective-june-2016.pdf

  • https://www.blackrock.com/corporate/en-us/about-us/investment-stewardship/engagement-priorities

  • https://www.fsb-tcfd.org/publications/recommendations-report/

Leaders Arena’s unique ESG intel helps IROs to better INTEGRATE, ENGAGE and LEAD

#ESGMarketIntel #SRIInvestorIntel #ESGDisclosure #Stewardship #Governance #Engagement #SustinableInvesting