BlackRock, Which Manages Over $10 Trillion, Strikes Back at ESG Critics

Investment giant BlackRock is rebutting Republican politicians over its ESG investment policies, arguing that its critics are wrong on both the science and the cents. Axios: Private equity and other investment fund managers should pay close attention, because they could be next in the line of fire. Last month, 18 state attorneys general sent a letter to BlackRock, essentially arguing that its goal of moving toward a net-zero economy is in conflict with its fiduciary duty. Two states, Texas and West Virginia, also banned state entities from doing business with BlackRock, arguing (incorrectly) that the firm boycotts fossil fuel company investments. Axios' Alayna Treene reports that the BlackRock blowback is part of a coordinated lobbying effort, writing: "The crusade against ESG investments is something many conservatives feel deeply about -- they view these companies as cultural enemies who are misusing investment funds to promote pro-climate policies... House Republicans plan to make an assault on ESG a central part of their legislative and investigative agenda if they take back the majority in November's midterms." BlackRock yesterday responded to the AG's letter, with a 10-page letter of its own. After again disputing the "boycott" accusations, the firm wrote: "We believe investors and companies that take a forward-looking position with respect to climate risk and its implications for the energy transition will generate better long-term financial outcomes." BlackRock is the world's largest asset manager, and its CEO Larry Fink has been very outspoken about ESG initiatives (with declining emphasis as the acronym progresses). In other words, it's a juicy target.

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