Pressure continues to build for more clarity on ESG rules and compliance.
What is ESG? Environmental, social, and governance (ESG) investing refers to a set of standards for a company’s behavior used by socially conscious investors to screen potential investments.
Environmental criteria consider how a company safeguards the environment, including corporate policies addressing climate change, for example. Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights.
Check out yesterdays story from The NY POST October 10, 2022 by Lydia Moynihan
The world’s largest asset manager is facing $1 billion in withdrawals from Republican state treasurers because of the financial giant’s investment priorities, according to published reports.
BlackRock, which manages $8.5 trillion, has come under fire for its aggressive push on so-called ESG investments that promote environmental, social and governance issues.
The outrage has led multiple GOP treasurers to announce they are planning to withdraw — or have already withdrawn — state funds from Larry Fink’s company.
The Louisiana treasurer, John Schroder, said last week he is pulling out $794 million, while Curtis Loftis of South Carolina announced plans to withdraw $200 million by the end of the year. That comes on the heels of the Utah treasurer withdrawing $100 million and Arkansas’ treasurer liquidating $125 million, according to the Financial Times.
People with knowledge say these withdrawals pale in comparison to the billions of dollars state pension funds invest in BlackRock. State treasurers allocate cash on hand in the treasury but have no say in where pension funds are allocated.
Despite, the planned withdrawals, BlackRock’s assets under management have actually surged $1 trillion since 2020.
The withdrawals come as 19 state attorneys general, led by Arizona’s Mark Brnovich, wrote to the Securities and Exchange Commission asking the agency to look into BlackRock's ties with China and whether or not it was prioritizing its fiduciary responsibility to investors.
The letter highlighted that the investing giant invests in and does business with Chinese companies that often flout environmental concerns even as it pushes for US companies to embrace net-zero carb emissions.
The letter also asked the SEC to examine whether the group’s ties to various climate groups and ESG objectives conflict with its fiduciary responsibilities.
Indeed here's a screenshot of todays headlines:
Stephen Akin Founder/investment advisor representative of Akin Investments a wealth management firm with over 35 years in "Wall Street". From planning to execution. We can help create an ESG program for your business. Investors, reach out for a free portfolio review and our perspective on your ESG exposure and investment strategy.