2023-12-19 20:10:49
The US Securities and Exchange Commission (SEC) recently proposed stricter rules in order to be able to strip the coveted label from funds that do not keep their promise of returns without a guilty conscience. Tariq Fancy, former head of sustainability at BlackRock, also judged ESG to be a “dangerous placebo”. The mining state of West Virginia, for example, passed a law that is primarily aimed at financial service providers that are withdrawing from the coal industry. Five of the world’s largest financial services companies – JPMorgan Chase, Goldman Sachs, Citigroup, Bank of America and Fidelity – temporarily withdrew from the government bond business last year after Texas blacklisted investors from buying stocks in arms producers .
Numerous Republican states are now targeting ESG investments and BlackRock. BlackRock boss Larry Fink no longer wants to use the term “ESG” because it has been used as a “weapon” by politicians. For BlackRock, the $100 billion that the company has invested in ExxonMobil, among others, serves as proof that they are not boycotting oil companies. Other fund providers in Europe, for example, like to sweep their investments in oil companies under the carpet because it doesn’t fit with sustainability.
BlackRock wrote in a statement that it denies the recent allegations from Tennessee and did not violate local consumer protection laws. However, several Republican states such as Texas, Florida and South Carolina have already withdrawn money from BlackRock. The share price has been volatile over the past twelve months. In the past few weeks, however, things have risen steeply, just like on the stock market.
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