BlackRock has decided to cancel planned engagement meetings with companies after a shift in US Securities and Exchange Commission guidelines, according to people familiar with the matter, as reported by Semafor on Tuesday.
The change affects how large investors, including index funds, can address social issues with corporations. This move could lead to a pullback from advocating for progressive corporate policies, particularly on environmental, social, and governance (ESG) matters. The revised guidance now restricts private investor interactions on these topics, limiting their influence on corporate practices.
On February 11, the SEC released new compliance guidance on Regulation 13D-G, which could change how investors engage with ESG and corporate governance matters. The next day, the SEC removed 2021 guidance that allowed excluding shareholder proposals on social issues, bringing back the previous rules.
