https://finance.yahoo.com/news/blackrock-leaves-major-climate-group-194831466.html?guccounter=1
By Silla Brush and Saijel Kishan
(Bloomberg) — BlackRock Inc. is parting ways with one of the world’s biggest climate-investor groups after being targeted by Republican politicians for its efforts on global warming.
The money manager said Thursday in a letter to clients that it decided to leave the Net-Zero Asset Managers initiative. Membership in the group “caused confusion regarding BlackRock’s practices and subjected us to legal inquiries from various public officials,” the New York-based firm said.
BlackRock, which oversees more than $11 trillion, has been the subject of attacks from GOP lawmakers for embracing what conservatives call “woke” policies. Most recently, BlackRock was among a group of asset managers singled out in a lawsuit led by Texas, alleging breaches of antitrust laws due to the adoption of pro-climate strategies that suppress coal production.
BlackRock also was mentioned, along with firms including State Street Corp. and Vanguard Group Inc., in a report last month from the House Judiciary Committee that said it found “evidence of collusion and anticompetitive behavior” by the financial industry to “impose radical ESG-goals” on US companies.
“Our participation in NZAMi didn’t impact the way we managed client portfolios,” BlackRock said in the letter signed by Vice Chairman Philipp Hildebrand and Helen Lees-Jones, global head of sustainable and transition solutions. “Therefore, our departure doesn’t change the way we develop products and solutions for clients or how we manage their portfolios.”
The moves reflect Wall Street’s desire to shield itself from increasing political pressure as Donald Trump returns to the White House. Earlier this week, Texas Attorney General Ken Paxton dropped his threat to cut off the lenders from municipal-bond deals after they quit NZBA.
In its statement, BlackRock said its fund managers “continue to assess material climate-related risks, alongside other investment risks, in delivering for clients.” About two-thirds of the firm’s largest clients, including all of its biggest customers in Europe, have made net zero commitments, the money manager said.
In response, Fink has said he no longer uses the ESG label because it’s become too politicized.
“BlackRock is under political pressure to exit climate groups and from shareholders who are unhappy with the loss of business from state investment funds that object to the agendas of climate groups,” said Erik Gordon, a professor at the University of Michigan’s Ross School of Business.
