BlackRock, the world’s largest asset manager, has resumed discussions with the leaders of its portfolio companies after reviewing new ESG related guidance from the U.S. Securities and Exchange Commission (SEC).
In a statement issued by a company representative, BlackRock confirmed that it had temporarily paused these engagements while assessing the regulatory update but has now reinstated its ‘stewardship engagements.’
The decision follows new SEC disclosure requirements, published last week, which demand greater transparency from fund firms when influencing portfolio companies on ESG matters. The regulatory shift, under the leadership of a Trump-appointed SEC chair, is seen as an effort to bolster corporate leaders’ authority over investors on key issues, including climate policies, executive pay, and board governance.
BlackRock, which oversees approximately $11.6 trillion in assets and is known for its passive investment strategies, has drawn attention for its focus on ESG-related financial risks. However, in recent years, the firm has reduced its support for ESG-driven shareholder resolutions, arguing that many are unnecessary.
The asset manager emphasised that it “does not use engagement as a way to control publicly traded companies” and stated that it is complying with the new SEC requirements. It added that it is now explicitly highlighting its role as a ‘passive’ investor at the outset of each engagement.
