“BlackRock is accused of “leftism” by the American Republican camp”

PIt’s easy to be the world’s leading financial investor. Often demonized as the most powerful representative of globalized capitalism, insensitive to ecological and social emergencies, BlackRock is today, on the contrary, accused of “leftism” by the American Republican camp. In their incessant crusade against “wokism”, this rereading of history through the prism of social justice and racial equality, very present in the American left, they have found a new target, “woke capitalism”.

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On Tuesday, June 14, the banking committee of the American Senate was to start hearing very large management funds such as Vanguard, State Street or BlackRock, on the way in which they vote at the general meetings of the companies in which they are shareholders, i.e. ie almost all of the major listed companies in the country. The senators criticize them for pushing their theses in favor of the environment, social issues or governance.

Faintness

Behind this offensive, hides a full-scale attack against these ESG criteria (environment, social, governance), an ethical segment of finance which the CEO of BlackRock, Larry Fink, enthusiastically promotes every year in his letter to investors. Today, it is one of the most dynamic areas which would represent, according to Bloomberg, nearly 40,000 billion dollars (about 38,230 billion euros) invested in the world. The most enraged Republicans, especially those from oil or coal states, accuse them of boycotting fossil fuel companies in their territory. “It’s no longer capitalism, it’s market abuse”, exclaimed Ted Cruz, senator from Texas. An attack that redoubles at a time when fossil companies are seeing their stock prices soar due to rising prices, when specialists in renewable energies are struggling.

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The “leftist” Larry Fink, with his good feelings, had to put water in his wine not to be accused of harming the investor clients who entrust him with their savings. He therefore assured that they could vote themselves if they did not want BlackRock to do it for them. He also split a letter to elected officials in Texas ensuring that he will continue to invest in the state’s oil companies.

This case illustrates both the extension of the American political debate to companies, but also the malaise surrounding responsible finance and these famous ESG criteria, whose outlines are too vague to be completely credible. However, the climate crisis urgently calls for long-term financial commitments based on harmonized and indisputable criteria, even by politicians.

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