New SEC Rules to Shed Light on BlackRock, Vanguard ESG Votes

New SEC requirements for BlackRock, Vanguard and other mutual fund companies to provide greater detail on their proxy voting records are poised to help socially conscious investors hold them accountable for their pledges on climate, diversity and other ESG priorities.

The Securities and Exchange Commission on Nov. 2 adopted rules that direct funds to give more information about their votes on environmental, social and governance issues, executive pay and other proposals considered at companies’ annual meetings. BlackRock Inc. and Vanguard Group Inc., which have promoted ESG investing, generally supported the enhanced disclosure, though SEC Republicans questioned whether the regulations were ...