The Republican Party, erstwhile champion of Big Business, opponent of any and all regulation thereof, committed to corporations-are-people-too-ism, believes that companies ought to be able to do whatever the hell they want. That is, as long as they don’t do anything that Republicans don’t want them to, like paying for employees’ abortion-related travel that Republicans have necessitated, or expressing fairly meek disapproval of their homophobic agenda. And Republicans definitely don’t want asset managers imposing their woke views on the companies they own huge chunks of. If that means imposing the sort of new, expensive rules Republican senators loudly decry about when done by Democrats or the SEC, so be it.
In legislation introduced Wednesday, Sen. Dan Sullivan (R., Alaska) calls for voting choice to be made available to individual investors in passive funds when money managers own more than 1% of a company’s voting securities…. Mr. Sullivan said he started looking at the asset managers after speaking with leaders in the Alaskan energy sector, who told him shareholder resolutions from climate activists had put pressure on their businesses.
Yes, and we wouldn’t want to have professional investors worrying about things that have material impacts on a company’s future.
In 2020, BlackRock Chief Executive Larry Fink steered the firm to consider environmental, social and governance risks as consequential as credit and liquidity risk. In a letter at the time, he said climate change “has become a defining factor in companies’ long-term prospects.”
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