A nuns’ pension fund has called out Blackrock for greenwashing and filed a shareholder resolution requesting the US asset management giant to conduct a review of its voting practices.
Mercy Investment Services, representing the Sisters of Mercy, said the $7trn (£5.3trn) fund house voted for only six climate-related resolutions out of 52 in 2019.
This is despite the fact its chief executive, Larry Fink, has publicly called on companies to lead the charge on environmental issues and that it is a member of the UN Principles for Responsible Investment, said the shareholder resolution filed by Mercy Investment Services director for social responsibility Susan Smith Markos.
Resolutions rejected by Blackrock included requests for enhanced disclosure and adoption of greenhouse gas reduction goals, the filing said.
The nuns are the latest to criticise Blackrock for its voting policy with Shareaction last month releasing a report naming it among the worst offenders after Capital Group and T Rowe Price when it came to its record globally. Another report focused on US shareholder votes ranked Blackrock as having the worst voting record on climate change alongside fellow passive giant Vanguard.
At the UN Climate Summit in Madrid this month, Al Gore, who is chairman of suspension private equity firm Generation Investment Management, accused Blackrock and Vanguard of financing the “destruction of civilisation”.
The nuns have called on the Blackrock board to initiate a review on its climate-related voting record in 2019. They are supported by the School Sisters of Notre Dame Cooperative Investment Fund, United Church Funds, Center for Community Change and Friends Fiduciary Corporation.
Other asset managers had a much better record when it came to supporting climate-related shareholder resolutions, the filing said.
The nuns said Blackrock lagged rivals such as Pimco, Allianz, Wells Fargo, Legg Mason, Eaton Vance, Nuveen, Alliance Bernstein, and MFS.
Mercy Investment Services was founded in 2010 and seeks to address the environment via shareholder advocacy and impact investments alongside other issues the sisters have tackled through their charitable work, such as racism, concern for women and immigration.
As well as company engagement, the fund excludes thermal coal and oil sands, invests in low-carbon and renewable energy and makes steps to reduce its organisational carbon footprint too.
A Blackrock spokesperson said it would meet with the sisters to discuss their concerns.
“We believe evidence of the impact of climate risk is building rapidly and we are accelerating our engagement with companies on this critical issue,” they said.
In June, Blackrock became a signatory to a Vatican statement calling for increased disclosure on climate risk from corporates.
