Almost 7,000 commenters have weighed in, mainly against the changes.
After BlackRock Chairman Larry Fink’s revelations about the asset manager’s renewed push for sustainable investments, State Street released its own prerogative to companies, announcing it would begin to vote against board members at companies that didn’t follow environmental, social and governmental practices. The reason, especially for underperforming funds, is State Street found that “shareholder value is increasingly being driven by issues such as climate change, labor practices, and consumer product safety.”
As ESG interest grows, the fight over the Securities and Exchange Commission’s proposed proxy voting changes, which could hamper shareholders targeting corporate behavior, is being met with some derision across the industry. In fact, The Investor-as-Owner Subcommittee of the SEC Investor Advisory Committee (IAC) in its comment letter to the SEC was adamant about the wrongness of the SEC proposed rules, stating: