Today, Vanguard Group, the world’s second-largest investment company, announced that it will “expand reporting on company engagement priorities such as climate change, board diversity, and corporate governance."
The decision comes in response to a shareholder resolution filed by Walden Asset Management requesting a review of Vanguard’s proxy voting on resolutions focused on climate change. In the past, Vanguard has largely voted with the management of companies it owns shares in, over the objections of other shareholders calling for greater disclosure of risks associated with climate change.
A similar commitment has been made by BlackRock, the world’s largest asset manager. In June, BlackRock supported a resolution calling on Exxon Mobil to increase transparency of climate change-related risks.
In response, Kelly Martin, Deputy Director of the Sierra Club’s Beyond Dirty Fuels campaign, issued the following statement:
“It is encouraging to see the world’s largest asset managers recognizing the threat posed by climate change. At a time when our federal government is turning its back on reality, it is more important than ever that the private sector step up to the plate. This increase in corporate engagement is an important step towards meaningful action on this critical issue.”
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