BlackRock Wants to Set ‘the Record Straight’ on ESG Investing

“The energy industry plays a crucial role in the economy, and, on behalf of our clients, BlackRock has invested $170 billion in U.S. public energy companies,” the fund giant said on the new webpage.

“We are also partnering with energy companies and start-ups to fund new technology and innovations that will power the global economy, now and in the future,” it added. “Despite these investments, BlackRock has recently been accused of ‘boycotting’ oil and gas companies.”

Texas officials leveled the boycott charge against BlackRock in August when they published a list of 10 fund companies and more than 300 individual funds that they said had eschewed investments in oil and gas companies. The Texas comptroller ordered state retirement and education funds to divest holdings from BlackRock and the other named companies and funds.

In July, West Virginia’s treasurer announced that BlackRock, along with


Goldman Sachs
,

JPMorgan Chase
,

Morgan Stanley
,
and


Wells Fargo
,
was ineligible for state banking contracts because of its supposed boycotts of fossil fuel companies.

Florida has adopted a broader resolution prohibiting state fund managers from considering ESG factors—shorthand for environmental, social, and governance considerations—in their investment strategies.

BlackRock flatly denies that it is engaged in any fossil fuel boycott, but it has been vocal in warning about the economic risks of climate change and has signed on to the Climate Action 100+ investor initiative that presses corporations to reduce carbon emissions.

BlackRock CEO Larry Fink warned about the impact climate change could have on businesses and share prices in his annual letter to CEOs in 2020 and has reiterated that message since, writing again this year that “climate risk is investment risk.”

The new webpage, part of a broader campaign within BlackRock to regain control of its corporate messaging, is steeped in the notion that it is impossible to uncouple climate risks from financial performance.

“We believe that companies that better manage their exposure to climate risk and capitalize on opportunities will generate better long-term financial outcomes,” the company said.

“While BlackRock participates in a wide variety of organizations on topics of interest to our clients,” it added, “our investment decisions are governed strictly by our fiduciary duty to clients, and that duty requires us to prioritize our clients’ financial interests above any commitments or pledges not required by law.”

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