Insights: Investors and Shareholders
At first glance, it may seem as if investors are pumping the brakes on climate proposals, but hawkeyed executives will recognize that activist investors are finding innovative ways to pressure companies and drive change.
Even before the Russian invasion of Ukraine and resulting tectonic shifts around energy politics, there were signs that the “divest from oil and gas” movement might be losing steam. Investors under increasing pressure to address climate change were starting to fall into two camps: (a) those who would divest and (b) those who would engage with companies to create change.
For the last several years, BlackRock has set the pace for how investment firms will drive ESG performance at portfolio companies. (See our 2020 and 2021 notes on BlackRock.) Larry Fink’s letter to the CEOs of BlackRock’s portfolio companies in January made headlines for its focus on relationships with employees and pushback on divestiture.
In my last post, I dusted off the Crystal Ball to look at what external signposts are telling us about the return of social risk and
We might as well reinvent our companies and the oil and gas industry while we are reinventing everything else — which includes defining how we