Have you seen this work on Asset Manager Capitalism by CommonWealth in the UK?
This explainer is a helpful intro:
https://www.common-wealth.org/publications/explainer-whats-the-deal-with-asset-management
But let me take a step back and explain why I think this analysis is so helpful.
I saw this post on LinkedIn from Katie Boland today:
It seems like a good time to point out that Nike pledged to shrink its carbon footprint, but since December, the company has lost about 30% of employees who worked on sustainability initiatives.
Already, the company was missing its targets for reducing emissions. Company disclosures also show that its private jets emitted almost 20% more carbon dioxide last year than in 2015. And at the Sept. 10 annual meeting, shareholder proposals to force actions on environmental and worker protections failed.
Shareholder advocacy is great but when BlackRock, Vanguard other ‘universal’ investors own asset percentages without historical precedent it is almost impossible for us to advocate for the climate or ourselves. #shareholderadvocacy #justeconomy #ClimateWeekNYC
Because Vanguard and BlackRock and State Street own such a significant share of every publicly traded company in the SP500 were just going to see more of what you’ve just highlighted.
What’s hardest for me, is that Catholic women religious, Interfaith Center on Corporate Responsibility (ICCR), As You Sow and other environmental advocates have used shareholder advocacy as such a meaningful tool over the past 30-40 years….
But my hunch with the move to passive investing is the effectiveness of advocacy is waning. Is that your read?
Are we seeing declining influence of shareholder advocacy / active ownership with the rise of Asset Manger Capitalism?
I am grateful to Adrienne Buller and Chris Hayes and the Commonwealth team because in addition to their critique… they are also pointing to a more constructive path forward:
https://www.common-wealth.org/publications/asset-manager-capitalism-where-next
If you want the long version I highly recommend the book: 📕 The Value of a Whale: On the Illusions of Green Capitalism
