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By U.S. law firm Hall Benefits Law (HBL).
Investment monolith BlackRock has officially withdrawn from the Net Zero Asset Managers Initiative, a coalition of corporations pledging to reach zero-carbon emissions by 2050. BlackRock joins Morgan Stanley, Bank of America, JP Morgan Chase, and others in abandoning the climate coalition, which was once a concerted effort by corporations to adopt energy conservation efforts and sustainable investing.
The withdrawal of BlackRock, which manages over $10 trillion in assets, is a particularly large blow to the environmental, social, and governance (ESG) investing movement, even as BlackRock CEO Larry Fink has become increasingly vocal about climate change.
Nonetheless, BlackRock's exit, along with other major corporate investment companies, is likely the result of opposition by GOP politicians who operate large state pension funds in Republican-led states such as Texas and Florida. For example, the $46 billion Indiana Public Retirement System terminated BlackRock in December.
An antitrust lawsuit that a group of 11 Republican states recently filed against BlackRock, State Street, and Vanguard is likely another contributing factor to BlackRock's withdrawal from the climate coalition. The lawsuit resulted from an extensive campaign by the GOP to attack Wall Street's focus on combatting climate change.
In its lawsuit, the Texas-led coalition claims that the named companies, three of the world...................... To view our full article Click here
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