Blackrock CEO Larry Fink last week released his annual shareholder letter, which has become an annual media event closely scrutinized as much for its political implications as its investment insights. In this year’s missive, he briefly discussed the energy transition – the process of reducing the world’s reliance on fossil fuels in favor of low-carbon […]
As we look back on 2023, one of the most significant events of the past year was the demise of ESG investing. Or, to be more precise, the end of the term itself. That’s a good thing, because it will open the way to greater clarity and accountability about investment risks. The term ESG has […]
Is a new day dawning at Exxon? Exxon shareholders elected two directors backed by an activist shareholder who called for changes in the oil giant’s response to climate change. It’s the first proxy campaign at a major US company where directors were the target and climate change was the issue. Anne Simpson of the California […]
Making progress on corporate climate risk disclosure is slow work. Partly it’s because the topic is complex, but it’s also because institutions are slow to change, even those that set themselves at the forefront. Last week brought two examples. First, investment giant BlackRock released its sustainability report, in which it said it identified 244 companies […]
It’s been a year since the Task Force on Climate-related Financial Disclosures (TCFD) released its recommendations. Backed by the G20 finance ministers and chaired by Michael Bloomberg, the TCFD offered concrete guidance for public companies on how to report risks and opportunities arising from climate change. The TCFD left no doubt that boards have an […]
This is the time of year when corporate directors sweat. They are anxiously finalizing the annual report and proxy materials that will present the company’s financial results and risks for all to see. This year directors have an added challenge: meeting investor expectations to disclose material climate-related risks. The pressure from investors is real. Blackrock, […]
Government task forces suffer from a bad reputation. Stuffed with members who have big titles but little appetite for hard work, such groups often are formed to bury an issue, not promote it. But the Task Force on Climate-Related Financial Disclosures (TCFD) is an exception. Its report, issued in late June, is substantive and serious. […]
A high powered investor group led by Warren Buffett and Jamie Dimon revealed their recommendations for improving corporate governance last week. The announcement was flawless – a show to rival any Broadway opening – but the dazzling cast couldn’t make up for a weak report. But while their show closed early, the authors’ clout is […]
Can a public company have a phantom director and refuse to answer questions about it? Lululemon Athletica thinks so. But will it prompt big investors to take a tougher stand on director elections?
Portraying yourself as a victim can be a great communication strategy. It deflects attention and can even arouse sympathy. BlackRock CEO Larry Fink has been playing the part masterfully ever since a volatile stock market exposed flaws in one of his company’s biggest products. But is BlackRock the victim – or the villain?