A group of investors organized by the Interfaith Center on Corporate Responsibility (ICCR) has filed shareholder proposals at four major asset managers, asking them to review their proxy voting record and justify declining support for ESG proposals.
The shareholders are targeting “misalignments between their public commitments on climate and racial justice and their proxy voting record” at State Street, BlackRock, Goldman Sachs, and J.P. Morgan, according to an ICCR blog.
“Investors don’t come to these filings lightly,” said ICCR Senior Policy Advisor Tim Smith in the blog. “Both as clients and shareholders we have been engaging and encouraging asset managers to recognize their fiduciary duty, highlighting the economic costs of ignoring climate and racial justice and building the business case for responsible stewardship for years now. We want to see them acting on these commitments through their proxy voting not just talking about them.”
Comments from investors filing the proposals singled out BlackRock and Goldman Sachs voting on climate change, while focusing on diversity and racial equity at State Street and J.P. Morgan.
It was not immediately clear whether any of the asset managers would apply to have the proposals cleared for exclusion from their proxy statements. The Securities and Exchange Commission (SEC) has adopted a new policy in recent years that means fewer proposals are granted so-called no-action relief on the grounds that they micromanage strategic decisions, leading to an upsurge in the number of proposals voted on in recent years.
Several asset managers including some of those targeted by ICCR said in reviews of their proxy season voting that their support for ESG shareholder proposals was down because this year’s proposals were more “prescriptive” or that boards had demonstrated progress or effective oversight on ESG issues.
The four asset managers are expected to hold their annual meetings between April and May, 2024.