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BlackRock is making no significant changes to its sustainable investing policy, despite backlash from some Republican lawmakers.
In an annual update to its stewardship policy, the world’s largest wealth manager said it’s only made “a few changes.”
https://www.foxbusiness.com/economy/putin-accuses-west-robbery-sanctions-national-speech-flagging-economy (Portal / Portal Photos)
One of those changes was the mention of support for expanded disclosures from companies exposed to risks and opportunities related to nature. The other policy was to encourage companies to publish reports on their sustainability performance and give investors enough time to properly assess their commitments.
“As a result, we do not anticipate any material changes in our voting, and much of our engagement with companies will continue the dialogue on material risks and opportunities that we had in 2022,” the company said.
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“Over the past year, BlackRock has been the subject of campaigns suggesting that we are either ‘too progressive’ or ‘too conservative’ in managing our clients’ funds. Neither of us are. We are a trustee. We put our clients’ interests first, providing them with the investment decisions and performance they need. We will not let these campaigns stop us from delivering for our customers,” BlackRock said in a statement to FOX Business.
“Customers continue to turn to BlackRock. In the US alone, clients have committed $84 billion in long-term net flows to BlackRock in the third quarter and $275 billion over the trailing 12 months.”
The annual update comes after an onslaught of criticism from some Republican lawmakers over the company’s stance on environmental, social and governance, or ESG.
Earlier this month, Florida announced it was divesting around $2 billion in assets from the firm over its ESG policies. Former BlackRock sustainable investing czar Tariq Fancy, meanwhile, has called his former boss, BlackRock CEO Larry Fink, an “emperor without clothes” and called for his resignation.
NEW YORK, NY – JANUARY 16: A sign hangs on the BlackRock offices on January 16, 2014 in New York City. (Andrew Burton/Getty Images/Getty Images)
“Larry Fink should stop ducking and step into the fight [ESG] Debate to clarify what he is saying. If he doesn’t, he should resign,” Fancy told The Telegraph.
Those comments came just days after North Carolina State Treasurer Dale Fowell fired a letter to BlackRock’s board of directors that also called for Fink to step down as BlackRock’s CEO.
Gov. Greg Abbott tweeted on December 1, “Texas was the first state to ban BlackRock from doing business with our state.”
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BlackRock controls approximately $8 trillion in assets, making it one of the most powerful pro-ESG voices in finance.
FOX Business’ Jeffrey Clark and Portal contributed to this report.