Environmental, Social, and Governance (ESG) funds should not include companies contributing to the climate crisis. BlackRock’s messaging emphasizes sustainability, but its ESG funds still include fossil fuels, forest-risk commodities, and companies that undermine human rights.
While BlackRock has made some progress in this area, its ESG risk integration still focuses on the portfolio impacts of climate change, rather than the carbon footprint of its investments.
BlackRock needs to assess its overall climate exposure and its role in driving climate change.
The company’s current ESG product screens are too low. It needs higher standards and uniform applications across different geographies.
ESG integration in BlackRock’s active funds is not transparent. Overall fossil fuel exposure and hard ESG exclusions must be clear. All ESG funds must have minimum exclusions and reflect a portfolio that doesn’t drive the climate crisis
BlackRock is the world’s largest investor in forest destruction, including the Amazon Rainforest, where billions of trees produce oxygen, absorb carbon and provide a home to countless bird and animal species. Behind nearly every company that cuts and burns forest, you’ll find BlackRock.
But Larry Fink and the financial industry must recognize that small steps and talk are not enough. Our future depends on bold, decisive action. Asset managers have the power to make immediate changes – and the responsibility to implement these feasible solutions.