BlackRock wants to clear the air on woke investing. CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER. BlackRock this week aimed to correct "misconceptions" it says 19 state attorneys general have held regarding the asset manager's environmental, social and governance (ESG) motives. BlackRock captured a leading share of long-term industry flows in 2022 and delivered positive organic base fee growth for the year. We have always believed that [with] any ESG or any energy transition, gas is going to play a central role for the next 50 years, BlackRock CEO Larry Fink told Fox Business on Tuesday. All that bodes well for the early winter months, but it doesnt mean Europe is out of the woods. Tenth Floor BlackRock, in a statement, said that it manages money on behalf of its clients and helps them navigate investment risks. The Inflation Reduction Act (IRA) became U.S. law in 2022. BlackRock Inc. 55 East 52nd Street New York, NY 10055 August 4, 2022 Dear Mr. Fink: BlackRock's Chief Client Officer, Mark McCombe, recently wrote a letter to many of our states describing BlackRock's position on energy investments with respect to our pension funds. In 2020, the BlackRock CEO said in his annual must-read letter that there should be a focus on climate change, noting that the topic was becoming a defining factor in its assessment of companies. The world's largest money manager released the letter Wednesday from Dalia Blass, senior managing director, head of external affairs, addressed to the 19 Republican attorneys general who had. Aug 2017 - Present5 years 8 months. BlackRock is proud to play our part in that process.". 55 E. 52nd Street New York, NY 10055 | Tel 212-810-5300 | blackrock.com Attorneys General of the States Listed as Signatories of the August 4, 2022 Letter c/o Mark Brnovich, Arizona Attorney General Re: Attorneys General Letter, dated August 4, 2022 Dear Attorneys General: We are writing in response to the letter you . Texas Employees Retirement System this year voted for shareholder proposals that urged big banks to cut off lending to fossil-fuel companies, the Times reported. BlackRock Seeks to Defend Its Reputation Over E.S.G. , The free newsletter covering the top industry headlines, Encapture releases data validation solution to enhance compliance automation, By signing up to receive our newsletter, you agree to our, Webinar *vMY@;jSmP'm0cP6]Fe%{yUUsh$%/9O{yn2j>Kq"z(y$_6W?|B~KA[%tifp6I@!S*iNvYt5UQ)";k#jeH*eB?}^z_vIbw@ /'c JW^Q*g.5jYj8+9Ei`dv%zFUuJFh-ovN1CQ9^6t+L%svefB b8\j`b# z'`91b9rl. Among the specific points the letter brings forward: Our view: Regardless of where you stand on this issue, the letter is excellent reading. The reason for this leftward drift of corporate America is the rise of woke capital. ESG investments are not designed to maximize profits. 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The company is a substantial investor in gas pipelines in Saudi Arabia, Abu Dhabi and Texas, Fink said. Blass' letter was provided to Reuters by a BlackRock representative. The world's largest money manager released the letter Wednesday from Dalia Blass, senior managing director, head of external affairs, addressed to the 19 Republican attorneys general who had signed an Aug. 4 letter to CEO Laurence D. Fink accusing BlackRock of using "the hard-earned money of our states' citizens to circumvent the best possible return on investment" in its position on energy investments. PHOENIX - Arizona Attorney General Mark Brnovich organized and is leading a coalition of 19 states that sent a letter to BlackRock Inc., calling out its practices of putting leftist politics above investors' interests and returns. Indiana Attorney General Todd Rokita said BlackRocks ESG initiatives are at odds with what should be its mission. Not yet. Europe may not need to rely on Russia to get through this winter, Ronningen said. Anyone can read what you share. Clients entrusting us with $530 billion, more than a quarter of our institutional clients equity index assets, have taken this option, the spokesman added. What is clear, on the other hand, is that there are investment risks and opportunities associated with a transition to a low-carbon economy, We do not, as suggested in your letter, dictate to companies what specific emission targets they should meet or what type of political lobbying they should pursue. SEE ALSO: ESG criteria used for some of Alabama's best-known brand names 'Important and a factor'. PracticalESG.com members have exclusive access to several Guidebooks and checklists to help companies improve how to quantify and communicate the financial value of ESG initiatives in a practical and meaningful way. Stakeholder capitalism is not about politics. What Happens if US Debt Defaults? As we have noted previously, BlackRock, on behalf of our clients, is among the largest investors in public energy companies, and has hundreds of billions of dollars invested in these companies globally, with approximately $170 billion invested in US companies. What we just went through with Covid is a window to what climate could do, said Kyle Meng, an associate professor at the University of California, Santa Barbara. Meanwhile, funds such as the $200 billion Teacher Retirement System must report their direct and indirect holdings with the listed companies this month. 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We offer a range of products and strategies to achieve their desired outcomesMany of our clients are choosing to invest in a mix of traditional energy companies, natural gas infrastructure, renewables and new decarbonization technologies because of the investment opportunities stemming from their crucial role in the economy.. According to the BlackRock website, the company is committed to "supporting the goal of net zero greenhouse gas emissions by 2050 or sooner" in January 2021. The $13.8 billion spending plan is still several steps before final approval, but the $124 million planned for state employee raises is the largest in state history. Thanks for reading! 2019 Legislative Session Update for Victims and Service Providers, 2021 Legislative Session Open Government Update. "As we have noted previously, BlackRock, on behalf of our clients, is among the largest investors in public energy companies, and has hundreds of billions of dollars invested in these companies globally, with approximately $170 billion invested in U.S. companies," she said. A top Fed official signals more rate hikes are coming. It is not a social or ideological agenda. Last month, 19 GOP attorneys general sent a letter to BlackRock CEO Larry Fink, who is increasingly becoming a Republican target, challenging the money managers commitment to environmental, social, and governance principles. It appears left-leaning organizations may be increasingly frustrated with BlackRock, too. The one-hour program features market and geopolitical discussions with a rotating panel of influential voices including thought leaders, CEOs, policy makers and economists. Prosecutor General Andriy Kostin called it a "historic decision" not only for Ukraine but for the entire system of international law. (WSJ), A Texas judge ruled that parts of the Affordable Care Act centered on preventive care were unconstitutional; the Biden administration is expected to appeal. The CCRcorp Network unlocks access to a world of insights, research, guides and information in a range of specialty areas. BlackRockspast public commitments indicate that it has used citizensassets to pressure companies to comply with international agreements such as the Paris Agreement that force the phase-out of fossil fuels, increase energy prices, drive inflation, and weaken the national security of the United States. At a product event yesterday, the tech giant introduced an $800 version of its Apple Watch aimed at endurance athletes, a bid to snatch market share from rivals like Garmin. endobj Organizations, such as MSCI, award ESG scores to corporations supposedly based on their adherence to ESG values. Subscribe to our newsletter and get our top stories every weekday morning. We Need to Remove It. kE'x+IEQw((+] P-+SodU\{*' E]VmGm's\FzKh-U!mY{"?,\ZmxoZe-x^)M: +] Please email thoughts and suggestions to dealbook@nytimes.com. Attorney General Paxton has filed a petition for review challenging an order by President Bidens Environmental Protection Agency (EPA) that disapproves Texass state implementation plan (SIP), which was developed in coordination with the Texas Commission on Environmental Quality (TCEQ) to ensure that Texas complied with federal air quality standards. AG Brnovich Letter to BlackRock, Inc. RE: ESG Concerns | Arizona Attorney General Arizona Attorney General Kris Mayes Espaol Office About the Office AG Opinions Agency Handbook AG Kris Mayes AZAG FAQs CLE Offerings Contact Us Employment LEO Training Procurement Volunteer & Internships Attorney Fee Caps Peace Officers Memorial Board Accelerating and delivering the goals of the Paris Agreement across all assets under management through an escalation and voting strategy is a far cry from neutrality, the letter states. Other critics have called ESG investing a "wokeness report card" and compared it to China's social credit score system. He was one, 2022 Proxy Disclosure and 19th Annual Executive Compensation Conferences, SEC Sets the Stage for Formal ESG Disclosure Controls, Episode 4 of ABCs of ESG Podcast Series Now Available. Traders are watching for whether the European Commission will intervene in the energy markets, in an effort to limit price rises. To many economists, trade can help solve climate-related problems but also aggravate them. No Reproduction Without Prior Authorizations. In his annual letter to businesses, BlackRock CEO Larry Fink emphasized that climate risk remains a major investment risk, but stated that the company will continue to support the oil and gas industry as part of a low-carbon energy transition.. New York, NY 10017-4036, Chicago Office The attorneys general asked BlackRock to respond by August 19. And competition for food production could lead to more export controls that reduce global agriculture flows, a fear that prompted the World Trade Organization to warn against countries imposing protectionist policies. "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. In its letter, BlackRock says that the firm has never dictated specific emission targets to any company, and that it doesnt coordinate its investment decisions or shareholder votes with others on climate issues, as the attorneys general claimed. <> Last month, shortly after Texas comptroller Glenn Hegar publicly accused BlackRock of "boycotting" energy companies, 19 Republican state attorneys-general sent a letter to the asset manager . 55 E. 52nd Street New York, NY 10055 | Tel 212-810-5300 | blackrock.com Attorneys General of the States Listed as Signatories of the August 4, 2022 Letter c/o Mark Brnovich, Arizona Attorney General Re: Attorneys General Letter, dated August 4, 2022 Dear Attorneys General: We are writing in response to the letter you sent to BlackRock, Inc. These antitrust concerns are especially acute because BlackRock and other asset managers affirmatively tout their market dominance.. Some of the AGs attacks are at their base really about how companies in which BlackRock invests demonstrate the financial value of ESG (or how they dont make that demonstration) and perhaps how BlackRock itself does so. Keeping you in-the-know on environmental, social and governance developments. Coordinated and implement enriching academic, cultural, and social developmental programs to achieve our goal of an inclusive campus environment . Don't miss out! BlackRock recently sent a letter to a number of states, claiming it focuses solely on its fiduciary duty and has joined climate organizations merely for "dialogue." The attorneys general responded by pointing out inconsistencies and conflicts between BlackRock's letter and its public statements and commitments. The firm is following a broad trend of policymakers and research when it comes to climate issues, BlackRock says. BlackRock and the other nine financial institutions on Texas divestment list have roughly 75 more days to convince the state to reconsider. "Governments representing over 90% of global GDP have committed to move to net-zero in the coming decades," Ms. Blass said in the letter. (WSJ), When Amazon Prime two-day shipping takes, well, longer than two days. You wont want to miss those, so register today! Fight, https://www.nytimes.com/2022/09/08/business/dealbook/blackrock-texas-defend-reputation-esg-fight.html. Republican attorneys general from 19 states said in a letter to BlackRock Inc. CEO Larry Fink that the company's support for so-called environmental, social and governance factors could be putting . Arizona Attorney General Mark Brnovich, a Republican and the lead signer on last months letter to the asset manager, told the Washington Examiner on Wednesday that BlackRocks response "was disappointing, to say the least.". BlackRock Inc Chief Executive Laurence Fink warned on Wednesday the U.S. regional banking sector remains at risk after the collapse of Silicon Valley Bank and that inflation will persist and rates . In this episode, I sit down with Meredith Ervine, Editor of TheCorporateCounsel.net. The Republican attorneys general contend that BlackRocks actions may violate state laws surrounding pension funds that require a sole focus on financial returns. Let Banking Dive's free newsletter keep you informed, straight from your inbox. Last month, 19 GOP attorneys general sent a letter to BlackRock CEO Larry Fink, who is increasingly becoming a Republican target, challenging the money manager's commitment to environmental . BlackRock's senior managing director Dalia Blass released a response to the attorneys general on Tuesday saying that the asset manager, which manages roughly $8.5 trillion worth of investments, never forced firms to adhere to specific emissions targets and does not coordinate its investment decisions or shareholder voting with climate activist But those strict guidelines are running up against two forces: a tight labor market and a talent pool of potential recruits full of social media natives who want the ability to freely express themselves. stream The letter also outlines several areas where the attorneys general question whether BlackRock may be in violation of state laws on maximizing financial returns to investors, including the fiduciary duties of loyalty and care. Indeed, we have voted against shareholder proposals that, in our assessment, are intended to micromanage companies. The latest open letter from Larry Fink, CEO of BlackRock, doesn't mention environmental, social, and governance, or ESG, investing but notes the firm's strategy remains "leading in sustainable . Last year, BlackRock began tapping into the Chinese market by offering mutual funds and investment products to Chinese investors, becoming the first foreign-owned firm to be allowed to do so. (WSJ). Texas Attorney General Ken Paxton joined 18 other states in a letter to BlackRock CEO Larry Fink challenging his company's reliance on Environmental, Social, and Governance investment criteria rather than shareholder profits in managing state pension funds. Why TikTok? Topics include: Commercial banking, payments, technology, risk, regulations, policy, Topics covered: bank/fintech relationship, banks buying fintechs, regulation, risk of neobanks and much more. BlackRocks actions may also violate state and federal law. BlackRock is hitting back at inaccurate accusations from Republican attorneys general who allege the firm is hurting their states and its own customers by pursuing environmental and social justice goals. Larry Fink's annual letter to BlackRock investors was about getting back to basics. The videos feature a young and diverse crowd. Texas Attorney General Ken Paxton joined 18 other states in a letter to BlackRock CEO Larry Fink challenging his companys reliance on Environmental, Social, and Governance investment criteria rather than shareholder profits in managing state pension funds. (E.S.G., or environmental, social and governance, is the latest term for socially conscious investing.) The 19 attorneys general, in their own letter last month, accused BlackRock of prioritizing activism over fiduciary duty to their state pension funds. Also, the 1st Annual Practical ESG Conference and the 2022 Proxy Disclosure and 19th Annual Executive Compensation Conferences both have panels exploring different aspects of institutional investor views and comments on ESG in investment strategies and proxy voting.
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