BlackRock modifies position on ESG policies as decision regarding Bitcoin ETF nears

The top money manager in the world, BlackRock is well known for its support of environmental, social, and governance (ESG) considerations. However recent development suggests that the company’s emphasis on ESG has declined substantially.

The decision about BlackRock’s application for a Bitcoin exchange-traded fund (ETF) is soon to be made, thus the change of heart occurs at a critical time.

BlackRock’s most recent annual report suggests that only 7% of the roughly 400 shareholder recommendations pertaining to environmental and social issues were approved by the company. This shows a substantial fall from 25% in the previous cycle and 47% in the cycle before that. According to the company’s report, “Because so many proposals were overreaching, lacking in economic merit, or just redundant, they were unlikely to aid in promoting long-term shareholder value.”

Due to BlackRock’s involvement with ESG, the Grand Old Party (GOP) has begun to question the company’s strategy. Additionally, Vivek Ramaswamy, a Republican candidate for president, criticised BlackRock for emphasising ESG over traditional profit-driven criteria.