BlackRock leverages voting power in Hong Kong companies to spur climate-change targets and disclosures
- Only 25 of 55 Hang Seng Index members have mentioned carbon emissions reduction or improvement targets on energy consumption
- A BDO annual survey of 400 of listed companies shows unsatisfactory results with only 12 per cent citing issues related to climate change
More than half of Hong Kong’s blue-chip companies have failed to commit to carbon emissions reduction or energy efficiency improvement targets in their latest annual reports. Investors including BlackRock want board directors to get their act together.
Only 25 of 55 Hang Seng Index members have mentioned carbon emissions reduction or improvement targets on energy consumption with time frames so far this year, according to environment, social and governance (ESG) disclosures reviewed by the Post.
“There is still a high percentage of companies that do not yet have any climate targets,” Amar Gill, who oversees investment stewardship in Asia-Pacific at BlackRock. “If you do not have targets, you will not be making steps toward that direction. Then we are likely to vote against some directors’ re-election.”
The New York-based firm, which manages about US$9 trillion worldwide, owned stakes in 333 Hong Kong-listed firms with a combined market value of US$34.6 billion on May 17, according to stock exchange data compiled by Bloomberg. Its biggest holdings included Link REIT, Swire Pacific, HSBC and CK Asset Holdings.
