Perhaps in response to its focus on proxy voting controls, BlackRock has announced what it calls “new voting opportunities in the iShares Core S&P 500 ETF (IVV).” The multinational investment giant notes that this particular product is its largest. It is one of the most widely held exchange traded funds.
Giving individual investors a say in voting related to their stock holdings is a good thing, but a closer look at this new system shows that BlackRock is trying to influence climate and social policy while giving the appearance that customers have voted. It appears to be a means of promotion. So sneaky.
Following UN guidance seems like a terrible way to vote on issues related to public companies.
If you receive one of these notices from a financial institution or other source, be sure to read them carefully and choose wisely to ensure you are receiving the appropriate information. Several Even if it’s not ideal.
If you take a closer look at the options, you won’t actually be able to vote on each proposal. Rather, by choosing from a variety of policy options, we create the illusion of choice. BlackRock describes this opportunity as “allowing people to have a greater say in how they vote.”
The first option is to simply let BlackRock vote on your behalf.
Among the six additional options, the “ISS Socially Responsible Investment Policy (SRI)” is aligned with “Social Responsibility”. The company incorporates the United Nations Environment Program Finance Initiative (UNEP FI), the United Nations Principles for Responsible Investment (UNPRI), and the United Nations Global Compact. Seems like a way.
The other option, ISS Catholic Faith-Based Policy, is oddly enough that the policy is “generally consistent with Catholic and Christian teachings as well as socially responsible shareholder objectives.” declares. This seems to be intended to catch the eye. People who want to vote based on their values and can skip over the fine print about the social and environmental impacts of policies.
Of the six additional policy options (other than choosing BlackRock), five refer to social, environmental, or climate considerations.
Naturally, I’m considering something I haven’t mentioned Any It focuses on prioritizing fiduciary responsibility (as any responsible board should). But I haven’t made a final decision.
This new voting scheme doesn’t seem to actually solve the problem that created the need in the first place, but it is a first step. If you receive a notice from BlackRock or a similar option from another asset manager, please be sure to read the detailed supporting materials carefully to make the best possible choice.
Then continue using your voice. Tell BlackRock that you want more say than just a few options to ensure that your money isn’t put into initiatives that run counter to your ability to get a full return on your investments.
