January 29, 2024
BlackRock’s ’24 Engagements: Priorities Haven’t Changed…But the Backdrop Has
In addition to updating its Global Principles and Voting Guidelines, BlackRock Investment Stewardship has also refreshed its Engagement Priorities. Here’s the bottom line, according to BIS:
BIS’ Engagement Priorities for 2024 are consistent with those from prior years as they continue to reflect the corporate governance norms, that in our view, drive long-term financial value. There are no material changes in our approach to engaging companies on these themes.
We do note however, that the macroeconomic and geopolitical backdrop companies are operating in has changed. This new economic regime is shaped by powerful structural forces that we believe may drive divergent performance across economies, sectors, and companies. Amid these shifts, we are particularly interested in learning from investee companies about how they are adapting to strengthen their financial resilience.
In our Viewpoint, Financial resilience in a new economic regime, we highlight the structural shifts that we believe are shaping this new regime and discuss how companies are adapting to manage risks and harness opportunities spurred by it.
The Investment Stewardship team provides more detail on engagement priorities – including how it discusses these topics with companies – in its 7 thematic commentaries:
1. Board Quality & Effectiveness
2. Strategy, Purpose, & Financial Resilience
3. Incentives Aligned with Financial Value Creation
4. Climate
– Liz Dunshee