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illuminem summarizes for you the essential news of the day. Read the full piece on Japan Times or enjoy below:
🗞️ Driving the news: The top three U.S. money managers—State Street, Vanguard, and BlackRock—have significantly reduced their support for environmental and social shareholder proposals
• This marks a sharp shift from 2021 when they backed a record number of such resolutions
🔭 The context: In the first half of 2024, State Street supported just 6% of environmental proposals, Vanguard did not support any, and BlackRock backed only 4%—a steep drop from previous years
• These three firms hold about 20% of all S&P 500 company shares, making their votes highly influential
🌍 Why it matters for the planet: Reduced backing for climate and social proposals by major financial institutions may slow progress on corporate ESG initiatives, which are critical in addressing environmental and societal challenges through business practices
⏭️ What's next: As ESG proposals face growing resistance, there may be increasing scrutiny of major asset managers’ commitments to sustainability and how this affects corporate governance
💬 One quote: "The top three U.S. money managers have slashed their support for environmental and social shareholder proposals," reports Bloomberg
📈 One stat: BlackRock supported just 4% of environmental proposals in the 12 months ending June 2024, down from 7% the previous year
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