Shocked, Shocked!! BlackRock Abandons Climate Finance Group; Participation Was "Causing Confusion"
The world’s biggest asset manager BlackRock has announced that it is leaving the Net Zero Asset Managers initiative (NZAMI) — a coalition requiring its members to reach net-zero financed emissions by 2050 or sooner. The NZAMI is an official partner of the UN Framework Convention on Climate Change (UNFCCC)’s Race to Zero Campaign, with more than 325 signatories managing assets totalling $57.5trn.
BlackRock, which manages nearly $11.5trn joined the initiative in 2021, stating that “it was proud to put its name behind the initiative” as helping investors capture net-zero investment opportunities was “one of its greatest responsibilities”. However, yesterday (9 January), the asset manager giant withdrew its membership, reportedly claiming that its participation in such organisations has caused “confusion regarding BlackRock’s practices and subjected it to legal inquiries from various public officials”.
It added that its departure from the initiative will not change how it manages client portfolio and that it will continue to assess material climate-related risks. The firm has previously received greenwashing complaints regarding its investing practices, with environmental non-profit ClientEarth claiming that BlackRock has indirectly funded fossil fuel projects through funds labelled as ‘sustainable’.
Morningstar Sustainalytics’ head of sustainable investing research Hortense Bioy said: “The news that BlackRock is exiting the NZAMI should come as no surprise to anyone. “BlackRock has hung in there as long as it could, but the pressure has become too great, and the reputational and legal risks too high…the firm will probably have some convincing to do in Europe, where, in general, investors care more about asset managers’ climate commitments than in the US.”
EDIT
https://www.edie.net/blackrock-departs-climate-group-as-wall-street-reassess-green-priorities/
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