BlackRock Inc, the 5.4 trillion dollar asset management fund, voted for eight proposals to boost diversity on multiple corporate boards last quarter. BlackRock is the world’s largest asset manager and has been looking to expand diversity in the boardroom for years. For BlackRock diversity is an investment strategy and the company is hoping to utilize its influence to push the narrative forward.
According to BlackRock “Board diversity, particularly in terms of gender, is important from a sustainable investment perspective, given that diverse groups have been demonstrated to make better decisions. This appears to be because they are better able to consider, where appropriate, alternatives to current strategies – a proposition that can ultimately lead to sustained value creation.”
In addition to its promotion of boardroom diversity, this is also the first year the company voted against board members “who sat on nominating committees but failed to respond to investors’ concerns about diversity.” BlackRock “decided to vote against members of the nomination committee of men-only boards in a more systematic manner,” in an effort to further establish itself as the foremost supporter of its gender diversity strategy.