blackrock letter to attorneys general

(WSJ). Fiduciary duty is not lip service, says August 4 letter, which is addressed to CEO Larry Fink and seeks clarification on actions that appear to have been motivated by interests other than maximizing financial return., A group of 19 Republican state attorneys general have written a letter to BlackRock stating that the asset manager is using state pension fund assets in environmental, social and governance investments that force the phase-out of fossil fuels, increase energy prices, drive inflation and weaken the national security of the United States., The eight-page letter outlines how the group believes BlackRock is using the hard-earned money of our states citizens to circumvent the best possible return on investment.. 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. 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. 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. 3 0 obj 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. Yesterday, the world's largest money manager published a letter pushing back on one it received last month from 19 Republican state attorneys general who accused BlackRock of putting its. 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. Why Have Stocks and Bonds Been Correlated Lately? 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 . Earlier this year, we further expanded client choice by offering interested institutional clients, including all US public pension clients, the ability to directly vote their shares. The letter claimed BlackRock has committed to leveraging its large asset holdings to accelerate net zero emissions against client wishes and boycotted energy companies. 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. is about profit, not politics, BlackRock argues. Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors. President Biden reportedly delays a decision on China tariffs. A coalition of 19 states led by Republican Arizona Attorney General Mark Brnovich sent a letter to BlackRock CEO Larry Fink last month accusing the company of putting its political agenda. The White House is holding back on scrapping Trump-era levies on Chinese imports, Bloomberg reports. (New York Post), Executives of Bed Bath & Beyond were reportedly worried about, Gustavo Arnal, then the retailers C.F.O., in the weeks before he died by suicide. Blass' letter was provided to Reuters by a BlackRock representative. 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.. Governments representing over 90% of global GDP have committed to move to net-zero in the coming decades, said Blass. 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. 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. 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. E. WALNUT lA 50319ST. Large asset management groups, such as BlackRock, Vanguard and State Street, and banks such as JPMorgan and Bank of America, use ESG ratings to choose where to direct capital. Thats caused the media-shy Wall Street firms to jump into creating their own social media content, rather than fight their junior associates propensity to post. 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. Instead, BlackRock says its shareholder votes and investment decisions reflect that, generally, its investment professionals believe that climate change poses real risks and opportunities for investors. By Sarah Jarvis. (NYT), Shareholders of Richemont, the luxury brands conglomerate, rejected a proposal by the activist investor Bluebell Capital. SEE ALSO: ESG criteria used for some of Alabama's best-known brand names 'Important and a factor'. The August 4 letter accused BlackRock of having "used citizens' assets 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. That fortified expectations that the Fed will raise rates by three-quarters of a percentage point this month. The one-hour program features market and geopolitical discussions with a rotating panel of influential voices including thought leaders, CEOs, policy makers and economists. Organizations, such as MSCI, award ESG scores to corporations supposedly based on their adherence to ESG values. While the administration is still considering ways to offer American businesses relief, political considerations are playing a role in the delay. The stated reasons for your actions around promoting net zero, the Paris Agreement, or taking action on climate change indicate rampant violations of this duty, otherwise known as acting with mixed motives, the letter states. You wont want to miss those, so register today! "Its sad that some groups are more interested in pushing a far-left agenda than protecting Americans from skyrocketing energy costs," he said. Chicago, IL 60601, BlackRock CEO letter highlights 'increasingly divisive environment,' ESG professionals say, CalPERS CEO says ESG battle is over lack of common definition, DeSantis launches anti-ESG alliance with 18 states, Sponsored Content: ESG Investing | Industry Brief, The Institutional Investors Guide to ESG Investing, 2023 Defined Contribution East Conference, Texas blacklists BlackRock, 9 other companies, claiming energy boycotts, was organized by Arizona Attorney General Mark Brnovich, included BlackRock on a list of 10 financial companies, BlackRock warns Texas decision is bad for the business climate', NYC's comptroller strikes back at Republicans' ESG criticisms, Florida State Board bans ESG considerations in managing pension plan. It appears left-leaning organizations may be increasingly frustrated with BlackRock, too. 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. measures anyway. BlackRocks tussle with state officials comes at a time when corporate social policies are becoming a campaign issue. The response also claimed that BlackRock has invested "hundreds of billions of dollars" in energy companies. x]one(da3M.Z\EygMH9:yS\TeOZSJ! Under the House budget, state . DAVID N. DINKINS MUNICIPAL BUILDING 1 CENTRE STREET, 5TH Floor NEW YORK, NY 10007 PHONE: (212) 6693500 @NYCCOMPTROLLER 2 We cannot achieve that goal without the active alignment of our asset managers, beginning with BlackRock, as our largest manager. The Need for Speed in Trend-Following Strategies, Global Fixed Income: Volatility and Uncertainty Here to Stay, Morningstar Indexes' Annual ESG Risk/Return Analysis, 2023 Outlook: The Top Five Trends to Monitor in the Year Ahead, Show Me the Income: Discovering plan sponsor and participant preferences for cr, The Future of Infrastructure: Building a Better Tomorrow, For institutional investors, ETFs can make meeting liquidity needs easier, Gold: the most effective commodity investment, 2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios, Ten ways retirement plan professionals add value to plan sponsors. The attorneys general asked BlackRock to respond by August 19. 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. The one stop resource for information about responsible executive compensation practices & disclosure. The Miami-Dade State Attorney's Office has dropped charges against Eric Popper, the driver who pulled out a handgun . No Reproduction Without Prior Authorizations. Subscribe to our newsletter and get our top stories every weekday morning. "The Attorneys General from Arizona, Nebraska, Kentucky, and 16 other states who wrote to BlackRock on August 4, 2022, are waging a war of political distraction in the hopes of protecting the fossil fuel interests that have captured their states. The statement comes in response to a letter issued by 19 attorneys general on August 4 criticizing the large multi-national company for its use of environmental social governance (ESG) scores in its investment strategy. Apple also revealed its latest iPhone and updated AirPod models. Sign up and get the best of News delivered straight to your email inbox, free of charge. ?)d% The answer is yes. He recently started his own fund firm, Strive, which promises to prioritize profit considerations in its investment decisions. The CCRcorp Network unlocks access to a world of insights, research, guides and information in a range of specialty areas. The response said BlackRock's motivation for using ESG criterion in its investments reflects shareholder votes and that its investment professionals believe climate change poses an actual risk for investors. 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.. BlackRock asks companies to disclose information pertaining to climate change that may affect businesses so investors can judge risk, Dalia Blass, the asset manager's head of external affairs, wrote in a . 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.". He was one, SEC Sets the Stage for Formal ESG Disclosure Controls, Episode 4 of ABCs of ESG Podcast Series Now Available. The Republican attorneys general, though, are not the only ones framing the ESG debate through the lens of pensioners sacrifice. 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. Lessons from Heinekens Russian Growth Backlash. We have to have an effective long-term transition.. The reason for this leftward drift of corporate America is the rise of woke capital. ESG investments are not designed to maximize profits. Alabama Attorney General Steve Marshall was one of the names on the letter. BlackRock, in a statement, said that it manages money on behalf of its clients and helps them navigate investment risks. BlackRocks actions may also violate state and federal law. This includes proposals that are unduly prescriptive and constraining on the decision-making of the board or management or address matters that are not material to how a company delivers long-term shareholder value, Your letter implies BlackRock has full discretion over where and how public pension fund investments and votes are directed. Biden reportedly delays a decision on China tariffs, political considerations are playing a in! That it manages money on behalf of its clients and helps them navigate risks... Activist investor Bluebell Capital helps them navigate investment risks email inbox, free of charge Available. 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