Sat. Oct 23rd, 2021


Blackrock has been accused of inconsistencies in his approach to sustainable investment in support of shareholders’ protests against Procter & Gamble’s palm oil spills.

The world’s largest investment group, which has Ambitious promises According to environmental, social and administrative standards, a join in October Rebellion of investors in PNG Which extends above the wooden pulp and palm oil supply chain of the consumer product group In Indonesia.

P&G has asked its Singapore-based supplier Wilmer International to investigate Astra Agro Lester, a subsidiary of the Indonesian company Astra International’s palm oil, that workers have complained of land grabbing from local farmers amid other environmental degradation.

Rights groups and sustainable investment advocates have turned their attention to BlackRock, a significant shareholder in Astra International, the parent company of Astra Agro Leicester. According to Bloomberg, the US-funded group is the third largest investor in Astra International, valued at about 350 350 million, holding a small direct holding in Astra Agro Leicester.

Green Finance Group has reported that Blackrock is inconsistent in its approach to ESG consideration without openly pressing the lining for environmental records. 7 8.7tn Fund house has arrived Under increasing pressure Adopting the 2020 Commitment on ESG and Sustainable Investment.

“It is unclear whether BlackRock is pressuring P&G to clean up its value chain and at the same time continue to benefit from the same price chain,” said Lara Cuvellier, investor lobbyist at Recyclim Finance’s Lobby Group. .

“The company should request time-limited and detailed … and divesting is committed if necessary changes are not forthcoming,” Cuvelier added.

Wilmer’s investigation began at Astra Agro Leicester Request Ohana Lingkunggan Hidup Indonesia, an environmental group, told P&G in October that three subsidiaries of the date oil company were involved in land grabbing by local farmers. The alleged occupation took place in seven villages in the remote Sulawesi region of Indonesia.

BlackRock CEO Larry Fink has previously said that ‘sustainable investment is the strongest foundation of client portfolios’ – Bloomberg

Astra International owns the commercial home in Hong Kong Jardine Matheson Through its Singapore-listed unit, Jardine Bicycle and Carriage. According to Bloomberg, BlackRock’s shareholding, which has been steadily rising for more than nine years, is mostly held through mutual funds and ETFs, according to Bloomberg.

Astra International did not respond directly to the allegations but said it was working with its subsidiaries on the sustainability and livelihoods of the local community. “Astra Agro Leicester has a stability code. . . And we are working with independent experts to further strengthen its sustainable performance, ”said Astra International.

P&G reported that Astra Agro Lestari sells palm products to Wilmer, one of the suppliers in the consumer goods group. “We have asked Wilmer to take steps to further investigate and deal with the case with their supplier Astra Agro Lester,” P&G said. Wilmer, who has made the allegations through reporting processes, said Astra Agro Lestari was still “incoming and open” to the investigation and was awaiting evidence of support from environmental groups.

Image Dynamics / Mythith Earth Estimated Sum Sum Tapanuli Orang-Utan Remains © Aditya Sumitra

BlackRock said it was “well aware” of the concerns and was “inseparable” with the companies concerned about sustainability. “Where we believe that agencies are not moving forward with sufficient speed and urgency, our most frequent task would be to hold directors accountable by voting against re-election,” the fund director said.

At Astra International’s 2020 annual meeting, Blackrock voted against a change of board and a proposal to remunerate the director.

Benjamin McCarron, managing director of Asia Research and Engagement, said: “If investors want to stay consistent, they should challenge palm oil producers to improve.”

Another environmental advocacy firm, Mighty Earth, has also pressured United Tractors, an Austra-based coal partner, to invest in the Martabe gold mine in Indonesia. According to Mighty Earth, the mine, located in Sumatra, floated in the habitat of the Tapnuli orang-utans, which is on the verge of extinction.

Astra Agro Lestary is not a member of Roundable on Sustainable Palm Oil, an industry firm committed to sustainable standards.

Capital Group, Astra International’s second-largest shareholder, declined to comment. The US-based fund manager had previously said that ESG considerations were “woven” into its investment approach.

UBS and the Vanguard Group, which holds Astra International shares, declined to comment. Norway’s central bank, a unit of Norges Bank, which manages the country’s sovereign wealth fund and also holds shares, has acquired Astra International. Exclusion View List Due to risk in 2015 Severe environmental damage.

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