Fresh analysis of asset managers’ 2022 proxy voting patterns reveals the world’s largest investors are backsliding on climate-related votes, mainly in the energy sector.
While 2022 was the hottest year on record for a number of countries globally, the world’s largest asset managers’ progress on climate action has cooled.
Investors filed a record number of shareholder resolutions relating to environmental and social issues during 2022’s proxy season. However, new analysis by non-profit ShareAction of how US, UK and European asset managers voted on these resolutions reveals that those with the biggest influence worked to block a number of key climate votes last year.
The overall share of support across surveyed investors for environmental or social resolutions (filed mainly in the US, with a handful from other countries) increased from 60% in 2021 to 66% last year, but this was mainly down to a surge of supportive votes from asset managers in Europe, where sustainability disclosures are tightening.
Overall, the total number of supportive votes from US and UK investors barely changed between 2021 and 2022. Worryingly, the data reveals how the world’s four largest asset managers – BlackRock, State Street Global Advisors, Vanguard Group and Fidelity Investments – have worked to block key climate votes going through.
This is particularly notable within the energy sector, where the world’s largest asset manager, BlackRock, went from supporting 72% of such votes in 2021 to just 16% in 2022.
It occurs to me that this could be a dangerous time for politicians and others failing to address the climate crisis. We have the most recent IPCC report identifying necessary action including an immediate stop to all new fossil fuel use and it’s ignored. Climate change is seen and experienced, it’s beyond controlling the narrative. The people that have warned of the growing crisis will be gaining power and influence, [ed: in a few years … ] we may well have laws that are applied retrospectively – and why shouldn’t they be? [ed: Why shouldn’t they be held responsible for their actions or – potentially recognised as criminal – neglect? Had the power to address severe climate destuction but chose not to …]
U.S. President Joe Biden’s reported plan to protect old-growth forests—which help combat global temperature rise by storing planet-heating carbon—is “grossly inadequate,” one climate advocacy group said Thursday.
Biden will mark Earth Day in Seattle on Friday with an executive order on the issue, according toThe Washington Post, which cited five unnamed sources briefed on the plan.
Responding in a statement, Food & Water Watch national organizing manager Thomas Meyer declared that “President Biden seems to think we’re celebrating the first Earth Day in 1970, rather than in [the] depths of the climate crisis in 2022.”
“Protecting forests without addressing the root cause of the climate crisis, namely the continued extraction and burning of fossil fuels, will do very little to slow global warming,” he warned.
“The president has many effective tools at his disposal to address the climate and public health impacts of fossil fuels in a serious way,” Meyer added. “He should start by following through on his pledge to end fracking on public lands and stop offshore drilling, and directing his agencies to reject all new fossil fuel infrastructure.”
Over 20 advocacy organizations are planning a nationwide “Fight for Our Future” mobilization for Saturday to demand climate action from the Biden administration and Congress.
On the heels of Earth Day, demonstrators plan to gather in Washington, D.C., and communities across the United States to reiterate the necessity of pursuing bold policies to combat the fossil-fueled planetary emergency, citing the Intergovernmental Panel on Climate Change (IPCC) report released earlier this month.
The organizing comes not only in the midst of the climate emergency but also as Russia’s war on Ukraine and price gouging by fossil fuel giants—in the third year of the Covid-19 pandemic—drive up the cost of gas.
Sierra Club president Ramon Cruz in a statement that “in this unprecedented moment of climate crisis, rising prices, energy insecurity, and racial and environmental injustice, it’s vital that our leaders fight to establish a livable, just, and healthy planet for all.”
“The latest IPCC report made clear that we not only have an imperative to address the climate crisis, but also the means to do so—doing so just requires the political will to make transformational investments at the scale and speed the crisis demands,” he added. “There’s a clear path forward for critical investments in climate, care, jobs, and justice, and Congress must seize this crucial opportunity to truly ensure the future we all deserve.”