The Net Zero Asset Managers initiative—a coalition of investment behemoths turned self-proclaimed climate warriors—hit a wall this week after BlackRock’s dramatic exit forced it to suspend operations. The fallout comes as U.S. political pressure mounts against the green agenda championed by corporate giants.
BlackRock, the globe’s largest asset manager with $11.5 trillion under management, walked away citing “confusion over the initiative’s climate efforts” and rising legal scrutiny from Republican lawmakers.
Far from serving the public interest, the Net Zero initiative that once had the enthusiastic backing. of BlackRock and other ESG cheerleaders on Wall Street is increasingly seen as out-of-touch with America’s economic needs and the political climate that is rejecting so many of the trendy causes adopted in 2020.
The alliance, which once boasted over 325 signatories controlling a staggering $57.5 trillion in assets, was launched in late 2020, amid the ESG craze, the Black Lives Matter movement, and pandemic lockdowns. Its lofty promise? To push the world’s financial powerhouses toward achieving net zero emissions by mid-century. But with the political winds shifting, that dream now appears to be on ice.
A letter to members—thinly veiled and light on specifics—blamed “recent developments in the U.S.” for the sudden halt in activities. Though it didn’t name names, the timing speaks volumes. With Donald Trump preparing to take office and vowing to dismantle what he calls the “green tyranny” imposed by global elites, it’s no surprise that Net Zero’s future is in doubt.
“As the initiative undergoes this review, it is suspending activities to track signatory implementation and reporting,” the letter noted, clearly signaling a retreat.