BlackRock adds Reuters to its goal of diversity for U.S. councils

By Ross Kerber and Jessica DiNapoli

(Reuters) – BlackRock Inc (NYSE :), a senior asset manager, said on Tuesday that US companies want to have at least one board that is 30% diverse and, for the first time, has a member of an under-represented group.

In its new guidelines outlining 2022 priorities for portfolio companies, posted on its website, the $ 9.5 trillion asset manager also provided new guidance to companies on reporting on climate change. But he said continued investment in fossil fuels would be needed.

Together, the updates showed that New York-based start-ups are taking steps similar to those of other large asset managers with respect to environmental, social and governance issues for portfolio companies.

At the beginning of the month Goldman Sachs Group Inc (NYSE 🙂 said large companies want to be at least a director of a low-representation group, citing the increasing availability of corporate disclosures that show personal diversity data.

Councils have been strengthening their diversity by adding new members in recent years, with increasing attention to the issue of investors, employees and customers.

Among companies, 21% of executives are black, Asian or Hispanic, according to executive recruitment firm Spencer Stuart. Women now make up 30% of all S&P 500 executives, according to Spencer Stuart.

A spokesman for BlackRock said the number of U.S. companies that released the data would continue to grow. Depending on the language provided by the spokesperson, leaders of underrepresented groups may include racial or ethnic minorities, persons identified as LGBTQ +, persons with disabilities, and veterans.

BlackRock’s guidelines did not specify when it would vote against directors of companies that did not meet its new standards, but stated that it would first focus on large companies. The lack of diversity was the main reason the company voted against more executives than in previous years in 2021.

THE REPORT IS MORE ACCEPTED

In terms of climate, BlackRock asked companies to report their emissions and other factors in accordance with the Value Reporting Foundation’s SASB standards. BlackRock said on Tuesday that companies could use other standards, highlighting the work of the new international commission announced by the United Nations at its climate summit in Scotland last month.

BlackRock also said it will encourage companies to show how resilient their business plans will be, in an effort to limit global warming, and noted the opportunities offered by new energy sources.

But he added: “We also agree that some ongoing investment is needed to maintain a reliable and affordable supply of fossil fuels during the transition.” BlackRock said how companies are allocating their capital in line with their goal of reducing emissions.

On corporate structures, BlackRock said companies looking to move into new forms should put the issue on a shareholder vote. Some companies are shifting to structures like “public benefit corporations” to take into account the interests of employees and other actors, a movement backed by more and more advocates.