New York City Comptroller Brad Lander said he’s reassessing business ties with BlackRock, which manages $43bn for the city’s pension plans, because of his increased concern that the firm is backtracking on its commitment to reduce carbon emissions.
In a Sept. 21 letter to BlackRock CEO Larry Fink, Lander said that while the world’s largest money manager has recognized climate change is an investment risk, it “abdicates responsibility” by not asking companies to set specific emissions targets.
Lander also took issue with BlackRock’s recent efforts to tout its investments in oil and gas in response to Republicans, who have criticized the firm for its advocacy of sustainable investing.
“The fundamental contradiction between BlackRock’s statements and actions is alarming,” Lander wrote in the letter. “BlackRock must demonstrate a plan to use its position as the world’s largest asset manager, with all the corporate governance responsibilities that go along with that position, to move its portfolio companies to get their businesses in line with a net-zero economy.”
BlackRock is the largest asset manager for three big NYC public pensions, managing about a quarter of their investments, according to Lander. BlackRock didn’t immediately respond to requests for comment.
BlackRock’s advocacy of investing with ESG goals has drawn fierce criticism this year from environmental advocates, who say the firm isn’t doing enough. At the same time Republican politicians across the country say the company is harming state economies and fossil fuel interests.
In Texas, some conservative lawmakers are seeking to steer money away from BlackRock and other firms they deem harmful to oil and gas companies.
Lander asked BlackRock to publish a plan showing how it will achieve net-zero across its entire portfolio, show how it will work toward phasing out high-emitting assets and provide more transparency about how it engages with companies in which it invests.
“BlackRock, as the world’s largest asset manager, must begin to lead in deeds, not simply words,” Lander said. “We will be prudently reassessing our business relationships with all of our asset managers, including BlackRock, through the lens of our climate responsibilities.”
