Wed like your feedback. Which Subscription Will You Cancel First? These agreements have never been ratified by the United States Senate. BlackRock has about 15,000 followers on TikTok. BlackRocks actions may also violate state and federal law. The letter claimed BlackRock has committed to leveraging its large asset holdings to accelerate net zero emissions against client wishes and boycotted energy companies. 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. Weeks later, Texas placed the asset manager on a divestment list for companies that are seen as boycotting the fossil-fuel sector. In wake of SVB's collapse, how will the Federal Reserve move to calm markets at its next meeting while continuing to fight inflation? 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. Keep up with the story. PracticalESG.com members have exclusive access to several Guidebooks and checklists to help companies improve how to quantify and communicate the financial value of ESG initiatives in a practical and meaningful way. articles a month for anyone to read, even non-subscribers! "The money we manage is not our own," a BlackRock spokesperson said in a statement. Our states will not idly stand for our pensioners retirements to be sacrificed for BlackRocks climate agenda, the attorneys general said. endobj Its videos tend to be more about financial education and less about giving a picture of what its like to work at the firm. In response, Dalia Blass, BlackRocks head of external affairs, said in a letter to the group of attorneys general that climate change is becoming a major risk and that investors and clients want to be apprised of the risks in order to achieve better returns. Tensions between BlackRock and Texas in particular came to a head last month when the state accused BlackRock of boycotting energy companies, violating a 2021 law that aims to protect the energy industry from the growing popularity of climate-minded investing. The rising cases have clogged the court docket and strained resources at the federal public defender's office and US attorney's office, according to Bloomberg. 2 0 obj David Westin speaks with top names in finance about the week's biggest issues on Wall Street. (E.S.G., or environmental, social and governance, is the latest term for socially conscious investing.) The response also claimed that BlackRock has invested "hundreds of billions of dollars" in energy companies. But can Wall Street firms, known to prize privacy and secrecy, also do authentic? They alleged the. 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. 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. This year, Fink used his annual letter to CEOs to defend BlackRock from accusations that it is woke. He said that the elevation of stakeholder capitalism, which deviates from the traditional shareholder capitalism model that purely emphasizes returns, is an improvement on traditional business models. 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 . Using tax benefits as incentives for encouraging certain behaviors is [Ed. "Its sad that some groups are more interested in pushing a far-left agenda than protecting Americans from skyrocketing energy costs," he said. It was sent to Arizona Attorney General Mark Brnovich and a group of other state attorneys general who are among a growing . President Biden reportedly delays a decision on China tariffs. Fight, https://www.nytimes.com/2022/09/08/business/dealbook/blackrock-texas-defend-reputation-esg-fight.html. Because thats where the potential hires are. Our states will not idly stand for our pensioners retirements to be sacrificed for BlackRocks climate agenda. Apple reaches for the fitness wearables market. Lessons from Heinekens Russian Growth Backlash. CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER. (NYT), The digital publisher Vice is weighing a content partnership with MBC, a media company backed by Saudi Arabia, years after distancing itself from the kingdom. 3 0 obj The attorneys general asked BlackRock to respond by August 19. 702 King Farm Boulevard, Suite 400, Rockville, MD 20850 / +1 212-944-4455 /. The asset manager doesnt dictate to companies what specific emission targets they should meet, BlackRocks head of external affairs wrote in a letter. Building factories elsewhere could be costly for both companies and consumers. Prosecutor General Andriy Kostin called it a "historic decision" not only for Ukraine but for the entire system of international law. That could fuel analysts questions at TDs earnings call Thursday. That is not the case. In August 2022, a coalition of 19 state attorneys general from Republican-leaning states sent a letter to Fink criticizing BlackRock for having "committed to implementing an ESG engagement and . Jackie Nov, BlackRocks global head of social media, told DealBook that BlackRock featured employees from all over the firm and that its engagement on TikTok was geared toward promoting financial well-being. That said, BlackRock has yet to produce a viral hit on TikTok. 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 Response (09.06.2022) Contributed by Noah Bressner (Axios) p. 1. Why TikTok? "The money we manage is not our own," a BlackRock spokesperson said in a statement. Some of her videos get millions of likes. 0 1 I X X Title: BlackRock Response (09.06.2022) Created Date: 9/6/2022 10:27:17 PM The Senators elected by the citizens of this country determine which international agreements have the force of law, not BlackRock. But those strict guidelines are running up against two forces: a tight labor market and a talent pool of potential recruits full of social media natives who want the ability to freely express themselves. As you probably heard, last week BlackRock submitted its response to the August 4 letter signed by the Attorneys General of 19 states accusing the financial firm of boycotting energy companies. Here are a few excerpts I think directly deflect the AGs attacks: we are disturbed by the emerging trend of political initiatives that sacrifice pension plans access to high-quality investments and thereby jeopardize pensioners financial returns, Governments representing over 90% of global GDP have committed to move to net-zero in the coming decades. <>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/Annots[ 19 0 R 20 0 R] /MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> On Wednesday, BlackRock sent a letter to a collection of attorney generals which defended its engagement in measuring the climate risk of companies and investing in clean energy as. Attorney General Paxton joined a coalition led by Kentucky and West Virginia to submit a comment letter to the Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA), requesting that these federal entities abandon their plans to impose new environmental regulations on federal contractors. We offer a range of products and strategies to achieve their desired outcomesMany of our clients are choosing to invest in a mix of traditional energy companies, natural gas infrastructure, renewables and new decarbonization technologies because of the investment opportunities stemming from their crucial role in the economy.. Governments representing over 90% of global GDP have committed to move to net-zero in the coming decades, said Blass. BlackRock is hitting back at inaccurate accusations from Republican attorneys general who allege the firm is hurting their states and its own customers by pursuing environmental and social justice goals. Get started Ms. Blass pointed out that much of the world has already made commitments to net-zero. Stern, isnt so sure. 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. If they are down to 10 to 20 percent storage levels, that will make things difficult to get through the spring.. 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. In this episode, I sit down with Meredith Ervine, Editor of TheCorporateCounsel.net. (NYT), The White House suggested that any effort by Britain to alter post-Brexit trade policies with Northern Ireland could hurt efforts to reach a U.S.-Britain trade deal. The time has come for BlackRock to come clean on whether it actually values our states most valuable stakeholders, our current and future retirees, or risk losses even more significant than those caused by BlackRocks quixotic climate agenda, the letter says. A basis for research and practical guidance focusing on federal securities laws, compliance & corporate governance. (WSJ). 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.. Wed like your feedback! ATTORNEY GENERAL 8( i K vw ffl ^ ^ S DES 1305 MOINES. Stay tuned. Tenth Floor Given our commitment to those saving for retirement, we are disturbed by the emerging trend of political initiatives that sacrifice pension plans access to high-quality investments and thereby jeopardize pensioners financial returns, Blass wrote Tuesday, according to Bloomberg. Traders are watching for whether the European Commission will intervene in the energy markets, in an effort to limit price rises. BlackRocks actions may also violate state and federal law.. Why Have Stocks and Bonds Been Correlated Lately? Also allaying trader worries are Europes success in finding alternatives to Russian gas and rising gas storage rates on the continent. The company is a substantial investor in gas pipelines in Saudi Arabia, Abu Dhabi and Texas, Fink said. The asset manager voted in favor of 24% of shareholder proposals on environmental and social issues this year, saying the measures had become too prescriptive. <> 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. Effective business strategies require communication that becomes more predictive or proactive, looking to ultimately build interactive relationships with stakeholders, he told DealBook, meaning, at some point, if done right, the brand becomes a part of consumers everyday life. 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. 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. Ashlee Vance explores innovations in new tech, software, engineering, and science in places outside of Silicon Valley. He moved into technical environmental consulting with ENSR Consulting & Engineering at the height of regulatory development, working across a range of disciplines. 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. BlackRock claims that its policies are merely focused on enhancing transparency., 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, Blass said. The Miami-Dade State Attorney's Office has dropped charges against Eric Popper, the driver who pulled out a handgun . In her letter Wednesday, Ms. Blass reiterated prior comments from the company that it "does not boycott energy companies or any other sector or industry.". 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. She continued to say that the manager has invested in a broad range of global energy ventures, which "involve a diverse mix of energy sources, including natural gas and renewable sources of energy, as well as decarbonization technology that needs capital to scale. In what sounds like a change of tune, Fink recognized the role of oil and gas in the energy transition, stating that "Different countries and . Opportunities to reduce climate risk cut across the political spectrum, Blass wrote Tuesday. 55 E. 52nd Street New York, NY 10055 | Tel 212-810-5300 | blackrock.com Attorneys General of the States Listed as Signatories of the August 4, 2022 Letter c/o Mark Brnovich, Arizona Attorney General Re: Attorneys General Letter, dated August 4, 2022 Dear Attorneys General: We are writing in response to the letter you sent to BlackRock, Inc. . Ms. Blass said in the letter the manager's motives for participating in various ESG-related initiatives is the result of its efforts to "realize the best long-term financial results consistent with each client's investment guidelines," and the participation in the initiatives is consistent with their fiduciary duties. 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. The Inflation Reduction Act (IRA) became U.S. law in 2022. BlackRock wants to clear the air on woke investing. 2019 Legislative Session Update for Victims and Service Providers, 2021 Legislative Session Open Government Update. SEE ALSO: ESG criteria used for some of Alabama's best-known brand names 'Important and a factor'. (WSJ), When Amazon Prime two-day shipping takes, well, longer than two days. Thats down from 43% in 2021, the Financial Times reported. 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. Clients entrusting us with $530 billion, more than a quarter of our institutional clients equity index assets, have taken this option, the spokesman added. In its response to the letter, BlackRock said it had never forced specific emission targets on any company and doesn't coordinate investment decisions with others on climate issues. The attorneys general asked BlackRock to respond by August 19. To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market. The Tennessee bank, in a filing Wednesday, said TD does not expect regulatory approval by the deal's May 27 extended deadline. BlackRock pointed to its $170 billion in investments in U.S. energy companies, saying they are completely at odds with any notion of a boycott, according to the Financial Times. 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. Last week, BlackRock continued pushback against the 19 state attorneys general who had accused the firm of violating the sole interest rule to maximize financial returns. In their letter, the attorneys general outline their belief that BlackRocks claimed neutrality on energy investments differs considerably from the asset managers public commitments to organizations like the Net Zero Managers Alliance and the goals of the 2015 Paris Agreement on climate change. That belief is by no means unique, she wrote, according to The New York Times. (WSJ), A Texas judge ruled that parts of the Affordable Care Act centered on preventive care were unconstitutional; the Biden administration is expected to appeal. Yet fund managers in many red states appear to be backing E.S.G. Don't miss out! 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. On August 4, Arizona Attorney General Mark Brnovich and 18 other conservative attorneys general sent a letter to . No Reproduction Without Prior Authorizations. The social networks assertion that less than 5 percent of its monetizable users are spam accounts is reasonable, according to new findings by the data analytics provider Similarweb. Capturing Carbon Isn't Enough. 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. AG Brnovich Letter to BlackRock, Inc. RE: ESG Concerns | Arizona Attorney General Arizona Attorney General Kris Mayes Espaol Office About the Office AG Opinions Agency Handbook AG Kris Mayes AZAG FAQs CLE Offerings Contact Us Employment LEO Training Procurement Volunteer & Internships Attorney Fee Caps Peace Officers Memorial Board BlackRock's senior managing director Dalia Blass released a response to the attorneys general on Tuesday saying that the asset manager, which manages roughly $8.5 trillion worth of investments, never forced firms to adhere to specific emissions targets and does not coordinate its investment decisions or shareholder voting with climate activist Under the House budget, state . They claimed that BlackRocks policies are undercutting shareholder profits in managing state pension funds. The reason for this leftward drift of corporate America is the rise of woke capital. ESG investments are not designed to maximize profits. Jeffrey Younger, an associate professor of management communication at N.Y.U. THOMPSON Je^rey.ThcmpsonOiowa.gov SOLICITOR GENERAL --aiiiui*- www.iowaattorneygeneral.gov IOWA DEPARTMENT OF JUSTICE OFFICE OF THE ATTORNEY GENERAL January 18, 2022 Victoria Newton Executive Secretary Executive Council Among the specific points the letter brings forward: Our view: Regardless of where you stand on this issue, the letter is excellent reading. Over the past five years, BlackRock has delivered an aggregate $1.8 trillion in total net inflows, or 5% average organic asset growth, compared with flat or negative industry flows. Well see you tomorrow. Choose your news we will deliver. ESG goals, while ostensibly well-intentioned, make little economic sense, and have a direct adverse effect on Texass oil and gas economy and state pension fund performance. *vMY@;jSmP'm0cP6]Fe%{yUUsh$%/9O{yn2j>Kq"z(y$_6W?|B~KA[%tifp6I@!S*iNvYt5UQ)";k#jeH*eB?}^z_vIbw@ /'c JW^Q*g.5jYj8+9Ei`dv%zFUuJFh-ovN1CQ9^6t+L%svefB b8\j`b# z'`91b9rl. Blass' letter was provided to Reuters by a BlackRock representative. 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. 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. 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. 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. Aug 2017 - Present5 years 8 months. As prudent risk managers and stewards of our clients assets, it is imperative that we seek to understand and assess how these risks and opportunities will impact the companies in which we invest, she wrote, according to the Financial Times. It is not woke. It is capitalism, driven by mutually beneficial relationships between you and the employees, customers, suppliers, and communities your company relies on to prosper, Fink said. For example, last year, nineteen state Attorneys General issued a letter to the CEO of Blackrock, Inc. raising antitrust concerns about the firm's commitment to ESG initiatives in its investment decisions. Our votes are not cast to penalize companies, Blass wrote. Pension funds in the 19 states they represent had an average support rate of 80% for shareholder proposals that encourage companies to consider ESG issues as well as their bottom lines, The New York Times reported, citing a Morningstar study. BlackRock, in a statement, said that it manages money on behalf of its clients and helps them navigate investment risks. natural gas traded below 200 euros per megawatt hour, after soaring to a record of nearly 350 euros per megawatt hour last month as uncertainties over the flow of Russian gas to Europe jolted the markets. Keeping you in-the-know on environmental, social and governance developments. 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. Indiana Attorney General Todd Rokita said BlackRocks ESG initiatives are at odds with what should be its mission. The firms belief is by no means unique, BlackRock writes. By Andrew Ross Sorkin,Vivian Giang,Stephen Gandel,Bernhard Warner,Michael J. de la Merced,Lauren Hirsch and Ephrat Livni. These goals often pertain to environmental sustainability but also to advocacy for specific social movements and commitment to "diversity, equity and inclusion" (DE&I). Law360 (March 16, 2023, 9:02 PM EDT) -- A former BlackRock trader has sued the investment management giant for discrimination, alleging he was fired amid a campaign to replace .