BlackRock CEO Larry Fink’s efforts to adopt “woke” environmental, social and governance policies, commonly known as ESG, could have a “material adverse impact” on the company’s core business The investment giant acknowledged this in a regulatory filing.
“Risk factors” for BlackRock’s stock price include the fact that “BlackRock’s business, size, and investments have received significant media coverage and increased attention from a wide range of stakeholders,” the company said. . Disclosed in annual 10-K filing and the Securities and Exchange Commission.
“Matters that are subject to scrutiny, such as ESG, may be viewed differently by various stakeholders, and BlackRock’s reputation may be affected by customer redemptions, terminations, legal or government actions, or scrutiny. and may have an adverse impact on business,” the application filed in February said. .twenty three.
Representatives for BlackRock did not immediately respond to The Post’s request for comment.
The world’s largest asset manager, BlackRock’s ESG portfolio is reportedly valued at $700 billion, just a fraction of its $10 trillion in total assets under management.
I have been projecting By 2030At least three-quarters of the investments will be in issuers of securities with a scientific goal of reducing greenhouse gas emissions on a net basis.
The company has pioneered green initiatives thanks to CEO Fink, who has bragged about climate change’s long-term threats to the economy and investment opportunities during his 50-year career on Wall Street.
However, as BlackRock pointed out in its 10-K SEC filing, ESG (which includes a variety of ethically responsible business practices, from reducing carbon emissions to combating discrimination in the workplace) ) are politically polarized.
While Democrats have championed the need for ESG in the workplace, Republican politicians have criticized President Joe Biden’s “woke” push for the corporate world to implement what they claim is a politically liberal agenda. They are attacking ESG as a method.
In 2022, BlackRock was also targeted by attorneys general from 19 conservative states, including Arizona and Texas, who accused the asset manager’s ESG-related policies of harming the U.S. energy industry. there were.
The move led to a boycott of investments in BlackRock in Texas, and the Lone Star State banned the state’s largest pension fund from investing in 350 funds run by BlackRock and other financial companies.
Fink said last year that he stopped using the umbrella term because it had become too politicized.
“I no longer use the term ESG because it has been completely weaponized by the far left and weaponized by the far right,” Fink said, noting that dropping the term would not change BlackRock’s stance. did.
Speaking at the Aspen Ideas Festival last June, he added that the company will continue to discuss decarbonization, corporate governance and the social issues it needs to address with the companies it invests in.
“We…have had the best year in history, and I am ashamed to have been part of this conversation,” Fink said, adding that his annual letter to investors addressing ESG issues is in no way a political statement. He pointed out that it was not intended.
