BlackRock's pension funds face ESG criticism from New York Comptroller
Reuters
Published Sep 22, 2022 12:17PM ET
Updated Sep 22, 2022 05:41PM ET
(Reuters) - New York City Comptroller Brad Lander said he is reassessing business relationships with BlackRock Inc (NYSE:BLK), among other asset managers, on concerns that it is straying from its "climate commitments".
The world's largest asset manager has faced criticism from many sides in the debate on low-carbon fuels, with environmentalists protesting it does too little to press for change at fossil fuel portfolio companies on one side, and Republican U.S. politicians accusing it of boycotting energy stocks.
"The fundamental contradiction between BlackRock's statements and actions is alarming," Lander said, in a letter dated Sept. 21 to BlackRock's Chief Executive Officer Larry Fink.
"BlackRock cannot simultaneously declare that climate risk is a systemic financial risk and argue that BlackRock has no role in mitigating the risks that climate change poses to its investments by supporting decarbonization in the real economy."
The firm had warned the U.S. Securities and Exchange Commission (SEC) last month that its proposed rules aimed at fighting "greenwashing" by fund managers will confuse investors.
Regulators and activists have become concerned that U.S. funds looking to cash in on the popularity of ESG (environmental, social and governance) investing may be misleading shareholders over their ESG credentials.
BlackRock manages $43 billion of the city's pension assets and is the largest asset manager for three big NYC public pensions.
It did not immediately respond to a Reuters request for comment.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.