Summarised by Centrist
BlackRock, the world’s largest asset manager, has quit the Net Zero Asset Managers (NZAM) initiative.
The decision comes as US banks and financial firms face growing pressure over climate commitments following Donald Trump’s election as president.
BlackRock informed clients it left NZAM due to confusion about its practices and legal inquiries from public officials. Vice-chair Philipp Hildebrand noted that the move doesn’t alter the firm’s approach to assessing climate-related risks in investment portfolios.
The withdrawal follows similar exits by US banking giants like JPMorgan and Goldman Sachs from related climate initiatives.
Once championing the mantra “climate risk is investment risk,” BlackRock has faced lawsuits and boycotts from Republican-led US states accusing it of promoting “woke capitalism” over financial interests.
Progressive groups have also criticised BlackRock for prioritising profit over sustainability, with support for environmental shareholder proposals plummeting from 47% in 2021 to 4% in 2024.
Progressive advocacy group Public Citizen dismissed BlackRock’s climate stance as “performative,” accusing it of appeasing the incoming Trump administration. Meanwhile, BlackRock continues balancing its US clientele’s scepticism with European clients’ demands for stronger climate action.
Read more over at The NZ Herald (paywalled)
Image: Felton Davis
