BlackRock to allow climate funds to vote separately on shareholder proposals: World’s largest asset manager BlackRock announced a new policy that would allow clients of 83 climate-focused funds in Europe — worth USD 150 bn — to vote separately from the rest of the holdings on shareholder proposals, the Financial Times reported last week. This allows climate funds to take an activist stance on proposals regarding decarbonization by considering whether firms are working on limiting climate risk. The move is an attempt to address internal opposition over decarbonizing investments as US conservatives push to prioritize profits over climate.

The policy doesn’t apply to all funds yet: US and Asian funds will vote to implement the mandate later this year. BlackRock is also planning to introduce the new structure to clients who invest through separately managed accounts.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

  • Shell to face impairments after biofuel plant pause: Shell could face up to USD 2 bn of losses in its 2Q earnings due to delaying construction on its Rotterdam biofuels plant. The company also recently cut back biofuel production plans at its Cherry Point refinery in the US and its Lingen plant in Germany. (Bloomberg)
  • Germany to launch tenders for hydrogen-ready gas power plants: Germany is set to launch the first tender to modernize 12.5 GW of gas power plants to accommodate the switch to hydrogen by late 2024 or early next year. The plan includes two tenders for 5 GW each of new hydrogen-ready plants, 2 GW for retrofitting existing plants, 0.5 GW for long-term storage, and 0.5 GW for fully hydrogen-powered plants. (Reuters)
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