BlackRock's just-released Engagement Priorities for 2018 reiterate the themes highlighted in its 2017-18 priorities released last March (reported on here):
- Governance - Board composition, effectiveness, diversity, and accountability remain a top priority.
- Corporate Strategy - Board review of corporate strategy is key in light of shifting assumptions.
- Compensation - Executive pay policies should link closely to long-term strategy and goals.
- Climate Risk Disclosure - Systemic disclosure standards would enhance understanding of the impact of climate change on individual companies, sectors and investment strategies.
- Human Capital - In a talent constrained environment, human capital management is a competitive advantage.
BlackRock notes that it maintains its focus on engagement priorities for at least two years to accommodate potentially several engagement meetings with companies over a period of months - which is warranted particularly in those cases where company practices may evolve in response to engagement.
See also BlackRock's Exploring ESG: A Practitioner's Perspective (reported on here - see: "BlackRock: ESG Policy Framework Should Include Corporate Disclosure 'Safe Harbor'"); CEO Larry Fink's 2018 annual letter to CEOs (reported on here); and numerous additional resources on our Institutional Investors and ESG topical pages.