All articles tagged with #esg initiatives
Texas Governor Greg Abbott faces conservative backlash for supporting the creation of a Texas Stock Exchange, which has received funding from BlackRock, a company criticized by conservatives for its ESG initiatives. Despite Abbott's previous criticism of BlackRock, he praised the new exchange for its potential to reduce regulatory burdens compared to NYSE and Nasdaq.
Financial giants JPMorgan, State Street, and Black Rock are withdrawing a total of $14 trillion from the Climate Action 100+ organization, which advocates for ESG initiatives and controls $68 trillion in assets. Republicans have praised the move, claiming that ESG initiatives harm the economy. State Street cited a misalignment with its proxy voting and engagement approach, while JPMorgan stated it no longer needs to rely on Climate Action 100+. Climate Action, with over 700 investors, engages companies to improve climate change governance and disclosure. Republican officials have lauded the withdrawals as victories against what they perceive as collusive ESG actions.
Claims that asset managers like Vanguard, BlackRock, and State Street "own" or "control" major U.S. corporations are debunked. While these companies are top shareholders in many prominent firms, they manage index funds on behalf of investors, not for personal gain. The asset managers use proxy voting to advance the best financial interests of their shareholders, and their voting records show that the majority of votes are on routine corporate matters. Claims of a "cartel" pushing ESG initiatives are unfounded, as the asset managers often disagree on key votes and have launched pilot programs to allow shareholders to direct voting on certain issues.