Blackrock did not support CA100+ initiative to ask Delta Air Lines to report its climate lobbying proposal

27 Jun, 2020 02:35
source: Singularity Financial

Singularity Financial Hong Kong June 27, 2020 – Investment behemoth Blackrock did not support the climate lobbying proposal at Delta Air Lines last week (18 June), despite it being filed by fellow Climate Action 100+ (CA100+) member BNP Paribas Asset Management, and the US airliner being a target company of the CA100+ investor engagement initiative.

A very healthy 45.9% of shareholders, however, did support BNP’s proposal, which asked the company to report on how its lobbying activities, both direct and indirect, align with the Paris Agreement.

Blackrock, which joined CA100+ in January, the same month its CEO, Larry Fink made a slew of sustainability commitments, revealed in its latest proxy disclosure that it voted against the lobbying proposal at Delta and another on political expenditure disclosure.

Blackrock, however, took a much stronger stance at Volvo last week, voting against four directors, including the Chair, in response to the Swedish car maker’s failure to address climate risks and concerns over its remuneration policy.

Volvo’s Chairman, Carl-Henric Svanberg was singled out in particular for the firm’s “current lack of adequate climate-related risks disclosures”. Blackrock added that it expects “more fulsome disclosure regarding the company’s long-term adaptation strategies in line with the TCFD by next year”.

The investment giant also voted against Volvo’s remuneration policy and raised concerns about overboarding of directors.

In spite of its opposition, however, the directors and chairman were reelected and the company’s remuneration policy was approved at the annual meeting (18 June).

Climate Action 100+ Background

Climate Action 100+ (CA100+) is an investor-led initiative to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change.

The initiative’s focus companies include 100 ‘systemically important emitters’, accounting for roughly 80% of annual global industrial emissions, alongside 61 other focus companies with significant opportunity to drive the clean energy transition. The 161 focus companies reflect all sectors and are headquartered across all major geographic regions.

Launched in December 2017 at the One Planet Summit, Climate Action 100+ garnered worldwide attention as it was highlighted as one of 12 key global initiatives to tackle climate change. At present, more than 400 investors with over $40 trillion in assets collectively under management are CA 100+ signatory investors.

Lead and collaborating investors are engaging with focus companies to press them to curb emissions in line with the goals of the Paris Agreement, improve governance and strengthen climate-related financial disclosures.

CA 100+ is coordinated by five partner organizations including: Asia Investor Group on Climate Change (AIGCC); Ceres; Investor Group on Climate Change (IGCC); Institutional Investor Group on Climate Change (IIGCC) and Principles for Responsible Investment (PRI).