States withdraw money
US Conservatives think Blackrock is way too “woke”
By Jan Ganger
10/19/2022, 5:15 p.m
The world’s largest asset manager Blackrock emphasizes that when investing, it also pays attention to environmental, social and good corporate governance criteria. US Republicans think that’s a bad idea.
For some, Blackrock is the epitome of profit-oriented financial capitalism. For the others, however, the world’s largest asset manager is far too “woke.” This accusation comes from conservative politicians in the USA. For their taste, Blackrock places too much emphasis on environmental, social and good corporate governance (ESG) criteria when investing and thus foregoes returns.
Blaming the so-called “woke” culture, which at its core is about the fight against discrimination and exclusion and for sustainability, is part of the repertoire of conservatives in the United States.
Missouri Treasury Secretary Scott Fitzpatrick spoke of a “woken political agenda” and announced that all money managed from the state’s pension fund would be withdrawn from Blackrock. It’s about $500 million. Several Republican-ruled states have threatened to sever ties with Blackrock over ESG concerns.
Earlier this month, Louisiana Treasury Secretary John Schroder announced plans to withdraw nearly $800 million. Reason: The focus on ESG criteria contradicts both the economic interests and the values of the state. “Your openly anti-fossil fuel agenda would destroy the economy of Louisiana,” Schroder wrote to Blackrock CEO Larry Fink.
So far, the damage to Blackrock is manageable. The group currently manages almost 8 trillion dollars. According to its own statements, the asset manager recorded a net cash inflow of 248 billion dollars this year. Blackrock emphasized investing in fossil fuels as well. About $100 billion has been invested in Texas energy companies.
Meanwhile, environmental protection groups accuse Blackrock of not doing enough for the energy transition. Fink said last week that he is now being attacked equally from left and right: “So I’m doing something right.”