4 ms·

Guy says that blockrock threatens to sell or not buy based on your ESG scores. Your rebuttal is, blackrock no power to enforce ESG scores. And companies have n

Guy says that blockrock threatens to sell or not buy based on your ESG scores. Your rebuttal is, blackrock no power to enforce ESG scores. And companies have no reason to comply. Is a huge financial institution threatening to sell not a 'reason' and a form of power?

Rastonbury 4y ago
When has Blackrock tanked a stock and where are the ESG changes? Ultimately the are fiduciary as an asset manager for their clients they can't decide to tank stocks for fun. A huge part of the holdings are in ETF which they can threaten to sell. Any deviation from typical huge fund manager behaviour when it come to governance is big finance news they hardly ever go against the grain. The biggest reason tho is that no one in Finance really gives a hoot about ESG, only returns
- vba616 4y ago
  >Any deviation from typical huge fund manager behaviour You make it sound extremely subjective, but Blackrock is (I think) mostly managing index funds, and it should be easy to quantify how well they track an index.
  - Rastonbury 4y ago
    I'm talking about corporate governance stuff like AGM and voting. They own a so much of companies because of index funds, but when they do make noise it makes the headlines of finance news.
blitzar 4y ago
Blackrock funds have mandates. If the mandate says ESG score must be >10 then that fund must hold ESG >10 stocks. Nobody is holding a gun to investors heads, forcing them to allocate money into funds that have this mandate that then only buy stocks that fulfil this mandate. > Is a huge financial institution threatening to sell not a 'reason' and a form of power? Investors threaten to sell stock all the time. Sales are shit - im gonna sell my stock unless you fire some people. Not paying a dividend - im gonna sell my stock unless you pay one. Stock price is performing poorly - im gonna sell my stock unless you do a stock split to con people into thinking the stock is cheaper.
- deleted 4y ago
  [deleted]

Rastonbury 4y ago

When has Blackrock tanked a stock and where are the ESG changes? Ultimately the are fiduciary as an asset manager for their clients they can't decide to tank stocks for fun. A huge part of the holdings are in ETF which they can threaten to sell. Any deviation from typical huge fund manager behaviour when it come to governance is big finance news they hardly ever go against the grain. The biggest reason tho is that no one in Finance really gives a hoot about ESG, only returns

vba616 4y ago
>Any deviation from typical huge fund manager behaviour You make it sound extremely subjective, but Blackrock is (I think) mostly managing index funds, and it should be easy to quantify how well they track an index.
- Rastonbury 4y ago
  I'm talking about corporate governance stuff like AGM and voting. They own a so much of companies because of index funds, but when they do make noise it makes the headlines of finance news.

blitzar 4y ago

Blackrock funds have mandates. If the mandate says ESG score must be >10 then that fund must hold ESG >10 stocks. Nobody is holding a gun to investors heads, forcing them to allocate money into funds that have this mandate that then only buy stocks that fulfil this mandate. > Is a huge financial institution threatening to sell not a 'reason' and a form of power? Investors threaten to sell stock all the time. Sales are shit - im gonna sell my stock unless you fire some people. Not paying a dividend - im gonna sell my stock unless you pay one. Stock price is performing poorly - im gonna sell my stock unless you do a stock split to con people into thinking the stock is cheaper.

deleted 4y ago
[deleted]