Brad Lander Calls for Pension Funds to Cut Ties with BlackRock
As his term as New York City’s comptroller comes to an end, Brad Lander is urging three major pension funds to part ways with BlackRock. He argues that the world’s largest asset manager isn’t doing enough in the fight against climate change.
Lander, who recently lost a mayoral bid, accuses Larry Fink’s firm of succumbing to pressure from the White House and shifting focus toward green investments. “Climate risk is financial risk,” he stated, emphasizing the noticeable impacts like increasing flash floods and wildfires. His term concludes on December 31.
He has also pointed out that BlackRock has scaled back on “climate change efforts in a way that unnecessarily jeopardizes investments.” In light of this, Lander is advocating for the New York City Employees’ Retirement System, the Teachers’ Retirement System, and the Board of Education Retirement System to move their investments to companies that have a stronger commitment to addressing global warming.
In response, BlackRock Managing Director Armando Senra criticized Lander’s statements, claiming they represent a politicization of public pension funds that threatens the retirement security of hardworking New Yorkers. The Post has attempted to get comments from BlackRock regarding this issue.
Additionally, Lander has called for some funds to end partnerships with Fidelity Investments and PanAgora Asset Management, citing similar concerns about their environmental efforts. They have not made any public comments as well.
It’s important to note that Lander doesn’t have the authority to enforce his proposals; decisions will ultimately rest with the directors of the respective funds. Bloomberg mentioned that the incoming mayor-elect Zoran Mamdani and his team will influence the city’s $300 billion pension plan moving forward.
Having lost to Mamdani in the Democratic primary, Lander has since become an advocate for the new mayor, who takes office on January 1 and has expressed strong opposition to capitalism.
Currently, BlackRock manages about $42.3 billion in city employee retirement funds. Its global assets reached a remarkable $13.46 trillion as of September 30, fueled by rising markets and trading income.
Under the Biden administration, BlackRock has faced criticism from Republican lawmakers regarding its stance on diversity, equity, and inclusion (DEI) initiatives, as well as its environmental and social governance (ESG) strategies.
Earlier this year, before Trump’s anticipated second term, BlackRock withdrew from the United Nations-backed Net Zero Asset Managers initiative, which aimed to encourage major companies to lower carbon emissions. Moreover, in June, it was removed from Texas’ investment “blacklist” after reducing its climate change efforts.
Lander’s successor will be Mark Levine, the current Manhattan Borough President, who also supports Mamdani’s agenda. Levine is expected to serve as an independent watchdog for spending, ensuring maximum benefits for New Yorkers amid Mamdani’s proposals for aggressive socialist policies.
At the time of this report, Levine had not provided any comment regarding Lander’s position on BlackRock.
