The company has left the Net Zero Asset Managers coalition, which is committed to reaching net-zero greenhouse gas emissions by 2050.
BlackRock, the world’s largest asset manager overseeing approximately $11.5 trillion in assets, has decided to withdraw from a climate pact backed by the United Nations (UN) that advocates for aggressive de-carbonizing of the economy.
A BlackRock spokesperson confirmed to The Epoch Times that the company has decided to withdraw from the Net Zero Asset Managers initiative (NZAM), a coalition comprised of over 325 signatories managing more than $57.5 trillion, all committed to the goal of achieving net-zero greenhouse gas emissions by 2050 by aligning investment strategies with this objective.
Membership in the climate pact did not affect the way BlackRock managed client portfolios, according to the spokesperson, but it did lead to confusion about the company’s practices and subjected it to legal inquiries from public officials. Despite the NZAM exit, BlackRock remains committed to sustainable investing.
Several major Wall Street banks have recently exited a similar climate-focused organization for lenders called the Net-Zero Banking Alliance (NZBA), which similarly pushes a net-zero goal.
Republicans, particularly from energy-producing states, have criticized the participation of banks and asset managers in net-zero coalitions as part of a progressive agenda and have accused them of antitrust violations.
In November, Texas and 10 other Republican-led states sued BlackRock and rivals, alleging that they disrupted coal production and raised energy prices.
“Texas will not tolerate the illegal weaponization of the financial industry in service of a destructive, politicized ‘environmental’ agenda. BlackRock, Vanguard, and State Street formed a cartel to rig the coal market, artificially reduce the energy supply, and raise prices,” Texas Attorney General Ken Paxton said in a statement. “This is a stunning violation of State and federal law.”
BlackRock has rejected the allegations, stating that the lawsuit undermines investments in essential companies that consumers depend on.
In a 2024 letter to shareholders, BlackRock CEO Larry Fink said that the company has “never supported divesting from traditional energy firms” and that it has over $300 billion invested in traditional energy firms on behalf of its clients.
By Tom Ozimek
