State Street Confronted Over Its ESG Bullying of Other Companies
At the State Street annual shareholder meeting on May 19, 2021, the Free Enterprise Project confronted executives over the way they pressure other companies to conform to their ESG priorities:
I’m Scott Shepard with the National Center for Public Policy Research.
State Street has taken an aggressive stand in favor of ESG investing, which is to say, making investments based on left-of-center assumptions about society, the economy and the future. You’ve told corporate boards that they must conform to State Street’s policy preferences or you’ll use your investors’ proxies to vote against them, claiming that your fiduciary duty requires this. But Warren Buffett has said that many ESG proposals are “asinine,” and that they are not fiduciary requirements, but "moral judgments" about which it is "very tough" to decide their real benefit to society.
Who is right, you or Buffett? And can you explain in detail what you do to ensure your proxy decisions reflect the actual wishes of your investors instead of those of State Street executives?
The Q&A can be heard above. For more information, see: