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E-MailElizabeth Ising is a partner and Co-Chair of the Securities Regulation and Corporate Governance practice group at Gibson, Dunn & Crutcher LLP. This post is based on a Gibson Dunn Securities Regulation and Corporate Governance Monitor blog post by Ms. Ising.
On May 28, 2015, BlackRock and Ceres released a guide for investors on engaging with public companies, asset managers and policymakers on environmental, social and governance (“ESG”) sustainability matters. The guide, titled “21st Century Engagement: Investor Strategies for Incorporating ESG Considerations into Corporate Interactions,” includes sections written by BlackRock and Ceres as well as AFL-CIO, California Public Employees Retirement System (“CalPERS”), California State Teachers Retirement System (“CalSTRS”), Council of Institutional Investors (“CII”), International Corporate Governance Network (“ICGN”), the Office of New York City Comptroller, New York State Common Retirement Fund, North Carolina Department of State Treasurer, PGGM, State Board of Administration of Florida, TIAA-CREF, T. Rowe Price and UAW Retiree Medical Benefits Trust.
The topics addressed in the guide include engaging with boards of directors, how to prepare and submit shareholder proposals, how to write effective letters, engaging with asset managers and government agencies, launching “vote no” campaigns, collaborating with other investors to promote sustainability initiatives, and when investors should consider divestment as opposed to further engagement. The guide also includes a section co-authored by representatives of Cornerstone Capital Group and the Sustainability Accounting Standards Board that proposes ESG-related questions institutional investors and analysts should ask companies in specific industries. Industries covered include: Oil, Gas and Mining; Banking and Finance; Insurance; Information Technology; Electric Utilities; Apparel and Retail; Transport; Food and Beverage; and Healthcare and Pharmaceuticals.
