Clients entrusting us with $530 billion, more than a quarter of our institutional clients equity index assets, have taken this option, the spokesman added. At the Code Conference, Jassy also criticized a recent unionization vote at a Staten Island warehouse. The one-hour program features market and geopolitical discussions with a rotating panel of influential voices including thought leaders, CEOs, policy makers and economists. Please email thoughts and suggestions to dealbook@nytimes.com. BlackRock and the other nine financial institutions on Texas divestment list have roughly 75 more days to convince the state to reconsider. Coordinated and implement enriching academic, cultural, and social developmental programs to achieve our goal of an inclusive campus environment . The guidance has inspired debate about how to approach similar environmental collaborations under U.S. antitrust laws. BlackRock is the world's largest investment management company, with $10 trillion in assets, "more than the gross domestic product of every country in the world, except for the US and China."30Climate Action 100+ boasts of having "over 50 percent of all global assets under management,"31while GFANZ touts its members $130 trillion "committed to Alabama Attorney General Steve Marshall was one of the names on the letter. These goals often pertain to environmental sustainability but also to advocacy for specific social movements and commitment to "diversity, equity and inclusion" (DE&I). Widely recognized as the premier online research platform providing practical guidance on issues involving Section 16 of the Securities Exchange Act of 1934 and all of its related rules. Ive written many times about the typical lack of robust internal data verification and disclosure controls for ESG reports in comparison to financial data and reports. It has become a target because chief executive Larry Fink has been outspoken about the need to address global warming. Europe may not need to rely on Russia to get through this winter, Ronningen said. Apple reaches for the fitness wearables market. While the administration is still considering ways to offer American businesses relief, political considerations are playing a role in the delay. x]one(da3M.Z\EygMH9:yS\TeOZSJ! 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 . Tenth Floor 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.. endobj 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, Contrary to the claim in your letter, we do not assume that the Paris Agreement will be implemented within the United States, and by all of its signatories, on time and in full by 2050. Rather, as we have previously stated, the speed and shape of this transition are unclear. Heineken, the Dutch beer company, has faced unwanted attention over the last several months due to their on-going operations in Russia, and things do not Lawrence Heim has been practicing in the field of ESG management for more than 35 years. Ive written many times about the typical lack of robust internal data verification and disclosure controls for ESG reports in comparison to financial data and reports. Investment company BlackRock responded to the attorney generals of some conservative states on Wednesday, defending its stance on ESG investing. BlackRocks tussle with state officials comes at a time when corporate social policies are becoming a campaign issue. Why Have Stocks and Bonds Been Correlated Lately? The Miami-Dade State Attorney's Office has dropped charges against Eric Popper, the driver who pulled out a handgun . In addition, the research arm of his company also encouraged investors to triple their exposure to Chinese assets. Some of her videos get millions of likes. O g]i:?/llJ%;kz4k~.BYHngqF&Bg&2'l{,>)U9Aa*BZ0x= +vn`~FfwAZLG`081->;e#SSY`Z[ENT$0*{U]ig0P=!:G7M]2*3 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. Thats down from 43% in 2021, the Financial Times reported. Keeping you in-the-know on environmental, social and governance developments. The sweeping spending bill included many provisions aimed at advancing climate and environmental goals through the use of tax credits. Lael Brainard, the central banks vice chair, said the Fed would need to see several months of low monthly inflation data before it was convinced that inflation was cooling off. 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. The reason for this leftward drift of corporate America is the rise of woke capital. ESG investments are not designed to maximize profits. He began his career as a legal assistant in the Environmental Practice of Vinson & Elkins working for a partner who is nationally recognized and an adjunct professor of environmental law at the University of Texas Law School. BlackRock, which has $10 trillion in assets under management, is a global leader in advancing the ESG agenda. Texas Attorney General Ken Paxton, in a statement about the letter, said ESG goals, while ostensibly well-intentioned, make little economic sense, and have a direct adverse effect on Texass oil and gas economy and state pension fund performance. 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 . 0 1 I X X Title: BlackRock Response (09.06.2022) Created Date: 9/6/2022 10:27:17 PM As a subscriber, you have 10 gift articles to give each month. The following is an effort to provide clarity on what Alaska law is, what ongoing legal challenges to it there are, and why the Attorney General sent the . 19 GOP Attorneys General Slam BlackRock Over ESG Investments, Governor Moves to Bar Florida SBA From ESG Investing, Bill Seeks to Protect Retirement Savings From Woke CEOs, The Exxon Vote: Pension Supporters Stay Onboard to Advance Change, Environmental Social and Corporate Governance. We do not, as suggested dictate to companies what specific emission targets they should meet or what type of political lobbying they should pursue, Blass wrote, according to the Washington Examiner. For instance, this year, Texas Employees Retirement System, the states second-largest public pension fund, voted for shareholder proposals that urged big banks to cut off lending to fossil fuel companies. Indeed, we have voted against shareholder proposals that, in our assessment, are intended to micromanage companies. The Kansas Court of Appeals ruled Friday that voting is a fundamental right and that restrictions on it must clear the highest possible bar, in an opinion . The world is still grappling with the turmoil that the coronavirus pandemic dealt to global supply chains, which snarled the production of huge sections of goods including automobiles and iPhones. 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. A top Fed official signals more rate hikes are coming. "The money we manage is not our own," a BlackRock spokesperson said in a statement. Other critics have called ESG investing a "wokeness report card" and compared it to China's social credit score system. That is the role of the companys management team and the board of directors it is not the responsibility of minority investors such as BlackRock.. Its videos tend to be more about financial education and less about giving a picture of what its like to work at the firm. BlackRock says its looking to correct misconceptions and inaccurate statements about its climate position. It belongs to our clients, many of whom make their own asset allocation and portfolio construction decisions. 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. A group of 19 Republican Attorneys General led by Arizona Attorney General Mark Brnovich and Nebraska Attorney General Doug Peterson have threatened the $10 trillion hedge fund BlackRock with antitrust legal action in an Aug. 4 letter to BlackRock CEO Larry Fink accusing the company of "intentionally restrain[ing] and harm[ing] the competitiveness of the energy markets" with its market . The firm is following a broad trend of policymakers and research when it comes to climate issues, BlackRock says. BlackRock said in its response letter that the attorneys general misunderstand BlackRock's ESG policies, noting that they ask companies to provide disclosures on material issues that. The Tennessee bank, in a filing Wednesday, said TD does not expect regulatory approval by the deal's May 27 extended deadline. . 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. CFA Revised Exam Cuts Study Time, Stresses Practical Skills, UBS to Explore Credit Suisse Deal in Crisis Combination, LME Rocked by New Nickel Scandal After Finding Bags of Stones, How First Republic Bank Received a$30 Billion Lifeline, UBS, Credit Suisse Oppose Idea of Forced Tie-Up. The sweeping spending bill included many provisions aimed at advancing climate and environmental goals through the use of tax credits. This year, BlackRock nearly doubled its stewardship team and, as such, companies should be ready to address these topics. The Senators elected by the citizens of this country determine which international agreements have the force of law, not BlackRock. The attorneys general specifically raised whether BlackRock's "coordinated conduct with other financial institutions"i.e., the two other investing giantsto demonetize the oil-and-gas. 1 0 obj Let Banking Dive's free newsletter keep you informed, straight from your inbox. The firms belief is by no means unique, BlackRock writes. "BlackRock has an obligation to act in the sole financial interest of its clients," states the letter, which is signed by 19 state attorneys general. "Governments representing over 90% of global GDP have committed to move to net-zero in the coming decades," Ms. Blass said in the letter. 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