Authored by Tom Ozimek via The Epoch Times (emphasis ours),
BlackRock, the world’s largest asset manager overseeing approximately $11.5 trillion in assets, has chosen to withdraw from a climate pact supported by the United Nations (UN) that promotes aggressive de-carbonizing of the economy.
A spokesperson from BlackRock confirmed to The Epoch Times that the company has opted to withdraw from the Net Zero Asset Managers initiative (NZAM), a coalition consisting of over 325 signatories managing more than $57.5 trillion, all dedicated to achieving net-zero greenhouse gas emissions by 2050 by aligning investment strategies with this objective.
According to the spokesperson, being part of the climate pact did not impact how BlackRock managed client portfolios, but it did create confusion about the company’s practices and subjected it to legal inquiries from public officials. Despite exiting NZAM, BlackRock reaffirms its commitment to sustainable investing.
Several prominent Wall Street banks have recently withdrawn from a similar climate-focused organization for lenders known as the Net-Zero Banking Alliance (NZBA), which also advocates for a net-zero goal.
Republicans, especially those from energy-producing states, have criticized banks and asset managers’ involvement in net-zero coalitions as part of a progressive agenda and have accused them of antitrust violations.
In November, Texas and 10 other Republican-led states filed a lawsuit against BlackRock and its competitors, alleging that they disrupted coal production and increased energy prices.
“Texas will not tolerate the illegal weaponization of the financial industry in service of a destructive, politicized ‘environmental’ agenda. BlackRock, Vanguard, and State Street formed a cartel to manipulate the coal market, artificially reduce the energy supply, and raise prices,” stated Texas Attorney General Ken Paxton. “This is a striking violation of State and federal law.”
BlackRock has denied the allegations, stating that the lawsuit undermines investments in essential companies that consumers rely on.
In a 2024 communication to shareholders, BlackRock CEO Larry Fink stated that the company has “never supported divesting from traditional energy firms” and that it has over $300 billion invested in traditional energy firms on behalf of its clients.
“If they wish to invest in hydrocarbons, we provide them every opportunity to do so – just as we invest around $138 billion in energy transition strategies for our clients,” Fink wrote. “That’s part of being an asset manager. We adhere to our clients’ mandates.”
In December, a Republican-controlled congressional committee requested information from BlackRock and numerous other asset managers regarding their involvement with NZAM.
“The over 60 asset managers who are members of NZAM must be held accountable for prioritizing woke investments over their fiduciary responsibilities,” stated the House Judiciary Committee, while correspondence sent to various asset managers demanded the preservation of records that could be linked to “NZAM’s collusive activity that would inform potential legislative reforms.”
Following the departure of several financial institutions from the climate pact for lenders, the Texas attorney general praised them for their decision in a Jan. 7 statement. Paxton claimed that the climate pact seeks to undermine the crucial oil and gas industries and that membership in the alliance could potentially prevent banks from entering into contracts with Texas government entities.
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