Conservatives notch another win after BlackRock kills ‘Net Zero’ membership, climate commitment
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BlackRockThe world’s largest asset manager recently withdrew its membership of the Net Zero Asset Managers Initiative (NZAM), a coalition committed to achieving net zero greenhouse gas emissions by 2050.
Last week, the company wrote in a letter to clients that the membership “has caused confusion about BlackRock’s practices and exposed us to legal inquiries from various government officials,” according to reports.
BlackRock Moves Out of Net Zero Climate Commitments (Yang Meiqing/VCG via Getty Images)
BlackRock also reportedly said its “asset” investment Portfolio managers will “continue to assess material climate-related risks.”
NZAM subsequently ceased all operations and stated that it had begun “a review of the initiative to ensure that NZAM remains relevant in the new global context”.
“NZAM will also remove the commitment statement and list of NZAM signatories from its website, as well as their targets and related case studies, pending the outcome of the review,” the company said in a press release.
Will Heald, executive director of the non-profit consumer research organization, told Fox Business that the move comes in the wake of a major lawsuit involving the asset management firm.
Spence v. In the case of American Airlines, Inc., federal court found that American Airlines and certain employees violated their legal obligations under the Employee Retirement Income Security Act (ERISA). In the company’s 401(k) plans, Hield said the ruling raises concerns that other businesses offering similar funds could face similar challenges. legal challenges.
“We always act independently and with a singular focus on what is in the best financial interests of our clients,” a BlackRock spokesperson told Fox Business regarding the case according to the choice”.
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Larry Fink, chairman and chief executive officer of BlackRock Inc., is featured here.BlackRock has exited the NetZero initiative. (Victor J. Blue/Bloomberg via Getty Images/Getty Images)
In a letter first obtained by Fox Business to the Fortune 500 company warning of the perceived risks associated with BlackRock, Hield wrote: don’t change the way… we can [clients’] portfolios. And BlackRock maintains its membership of the UN PRI, where it has pledged to “mainstream ESG issues” [its] ownership policies and practices”.
Hilde’s letter continues. “Therefore, fiduciaries risk a breach of duty by continuing to entrust plan assets to BlackRock. In conclusion, any corporation or company that uses BlackRock to manage its pension plans is now effectively aware that BlackRock has acted duplicitously.” motives. in the past and is still publicly committed to doing the same moving forward.”
Net-zero commitments gained traction after the UN climate conference in 2021. Conservative lawmakers largely oppose the policy, arguing it is based on dubious data and could hurt economic growth, particularly in energy-producing nations policies such as “woke capitalism,” arguing that they could lead to higher energy costs, job losses in traditional energy sectors, and unnecessary government intervention.
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BlackRock headquarters in New York, USA, Wednesday, December 27, 2023. (Angus Mordant/Bloomberg via Getty Images/Getty Images)
Hield told Fox Business he believes President-elect Donald Trump the victory shows that many voters favor rolling back some of these left-wing initiatives.
“I think about the shareholders, but I think about the consumers more,” said Hield “Net zero” stuff raises costs that must then be passed on to the consumer. It’s about raising costs everywhere from the gas pump to the grocery store, and contributing significantly to inflation.”
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An NZAM spokesperson told Fox Business in a statement that BlackRock’s withdrawal was “disappointing” and that “Climate risk is a financial risk”.
“NZAM exists to help investors mitigate these risks and realize the benefits of the economic transition to net zero,” it said in a statement.
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