Consumers’ Research launched an attack against BlackRock and CEO Larry Fink during the National Association of State Treasurers annual convention, accusing the firm of cozying up to dictators.
The newest broadside is part of a monthslong multimillion-dollar campaign by the conservative nonprofit organization, which has worked to cast BlackRock and Fink as bad actors for the company’s forays into China and for its embrace of environmental, social, and governance goals in investing.
State treasurers in some Republican states have been using their power to push back against ESG and BlackRock, which is the world’s largest money manager.
Consumers’ Research Executive Director Will Hild told the Washington Examiner that the reason why his group decided to run a mobile billboard outside of the NAST meeting was that he claimed BlackRock representatives were in town for the conference.
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“Consumers’ Research has confirmed that meetings between state treasurers and BlackRock’s lobbyists are taking place during the NAST convention. This is the latest attempt by BlackRock to cover up the tracks of their anti-American ESG agenda,” Hild said.
The billboard itself features Fink handing cash to Chinese leader Xi Jinping and Russian strongman Vladimir Putin. Fink appears to be chastising Uncle Sam, and the text on the billboard reads: “BlackRock: Our Enemy, Their Ally.”
Consumers’ Research BillboardHild accused BlackRock of “spending money hand over fist to cozy up to” and gain access to different parties involved in the dispute over ESG by telling them different things. He said BlackRock tells those on the Left that they have lofty social and environmental goals while also trying to avoid the ire of the Right by telling them they aren’t attempting to kill the energy sector.
A critique that Consumers’ Research has leveled against BlackRock is that the firm is violating its fiduciary duty by not prioritizing shareholder value through its investments in ESG and ties to China.
In 2020, Fink said in his annual must-read letter that there should be a focus on climate change, noting that the issue was becoming a “defining factor” in its assessment of companies. After the letter, several companies announced plans to cut their carbon footprints, showing the sway Fink has within the financial world.
BlackRock and other firms have started to feel some pushback over ESG initiatives.
West Virginia Treasurer Riley Moore’s (R) office was empowered by the state legislature to deem five financial institutions ineligible for state banking contracts on the grounds that they “boycott” fossil fuel companies. The restricted financial institutions are BlackRock, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo.
Moore told the Washington Examiner last month that he had meetings with officials from some of the firms but that the five were listed because they still maintained policies that were “boycotting the fossil fuel industry.”
Last month, 19 GOP attorneys general also sent a letter to Fink challenging his firm’s commitment to ESG priorities. They claimed that BlackRock’s policies are undercutting shareholder profits in managing state pension funds.
The Republican attorneys general contend that BlackRock’s actions may violate state laws concerning pension funds that require a sole focus on financial returns.
“Our states will not idly stand for our pensioners’ retirements to be sacrificed for BlackRock’s climate agenda,” the attorneys general said. “The time has come for BlackRock to come clean on whether it actually values our states’ most valuable stakeholders, our current and future retirees, or risk losses even more significant than those caused by BlackRock’s quixotic climate agenda.”
In response, Dalia Blass, BlackRock’s head of external affairs, told the group of attorneys general that investors and clients wish to be made aware of the risks from climate change so they can achieve better returns. Blass also asserted that BlackRock’s policies are merely “focused on enhancing transparency.”
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“We do not, as suggested in your letter, dictate to companies what specific emission targets they should meet or what type of political lobbying they should pursue,” Blass said. “That is the role of the company’s management team and the board of directors — it is not the responsibility of minority investors such as BlackRock.”
BlackRock declined to comment.
