This election sparked discussions. Ultimately, the head of the most influential Saudi oil producer prevailed and was confirmed as a director of Blackrock.
Even the New York City Employees' Retirement System joined the discussion. In a statement, the New York City Comptroller's Office urged shareholders to reject the re-election of Amin Nasser, CEO of the Saudi oil producer Aramco. It was argued that Nasser's ability to act independently was compromised by his connections to Aramco and Blackrock's investments in the oil company.
New York City Comptroller Brad Lander expressed his concern about Nasser's role as an «advocate for the expansion of fossil fuels», which directly contradicts Blackrock's stated climate mission to support «the goal of net-zero greenhouse gas emissions by 2050 or sooner.»
Lander also questioned Blackrock's involvement with Aramco, citing a 2022 transaction where a group of investors led by the financial giant paid 15.5 billion dollars to acquire a 49 percent stake in Aramco.
Nasser's First Full Term
Nasser's initial appointment to the board last year was already controversial. Aramco has been accused of lagging significantly in the energy transition and violating human rights. Nasser himself has been a vocal supporter of the expansion of fossil fuels, recently stating that the world should «abandon the fantasy» of moving away from oil and gas.
According to Blackrock, Nasser's election will provide the board with «extensive knowledge and understanding of business operations, risk management, and the energy transition, as well as an experienced perspective on global business strategies.»
«Concerning» Votes
However, Blackrock also faced a shareholder resolution proposed by Mercy Investment Services. This was due to a significant drop in support for environmental initiatives from 28 percent in 2022 to 7 percent in 2023. Both its proxy voting record for 2023 and its climate change-related proxy voting policies were to be examined. This resolution received about 8 percent of the shareholder votes.
In a press release, Jessye Waxman, Senior Strategist for the Sierra Club’s Fossil-Free Finance Campaign, stated that the votes on climate-related issues were «concerning» and that shareholders «appear timid about encouraging Blackrock to take this issue seriously – whether through its proxy voting or choice of directors.»
Individual Votes Not Yet Disclosed
While the individual votes for board members were not disclosed, Blackrock announced that all 16 directors up for election or re-election received majority support. Detailed results are expected in the coming days.
