BlackRock's support of ESG resolutions falls to record low

BlackRock, the world's largest asset manager, appears to be backing further away from the environmental, social and governance (ESG) moment.

The investment giant said in a report Wednesday it supported a mere 4% of the nearly 500 ESG-related proposals put forth by shareholders during the 2023-24 proxy season, a fresh record low.

In 2023, BlackRock supported 6.7% of the ESG measures put forth, which was a record low at the time.

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"In our assessment, the majority of these (proposals) were over-reaching, lacked economic merit, or sought outcomes that were unlikely to promote long-term shareholder value," it said in the report on Wednesday.

"A significant percentage were focused on business risks that companies already had processes in place to address, making them redundant."

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BlackRock largely spearheaded the ESG movement but has walked back its support of environmental and climate-related proposals in recent years following a nationwide push against the movement, which broadly seeks to promote a green energy transition and left-wing social priorities through the financial sector and major corporations.

Across the market, overall support for ESG proposals was flat at 23% last year, industry tracker Morningstar said, while support for environmental and social resolutions fell to 16% from 19%.

FOX Business' Thomas Catenacci and Reuters contributed to this report.