by Joseph Simonson at The Washington Free Beacon
A coalition of 19 Republican attorneys general says BlackRock CEO Larry Fink prioritizes left-wing political initiatives over shareholder returns and is jeopardizing the retirement of middle class workers with pensions.
Fink’s embrace of environmental, social, and governance investment policies, known as ESG, potentially runs afoul of several laws, the AGs charge in a letter sent to Fink. Instead of managing state pension funds and finding the best returns on investment, the AGs write, BlackRock uses “citizens’ assets to pressure companies to comply with international agreements” such as various climate initiatives.
Republicans are increasingly targeting asset managers such as BlackRock over their pro-ESG policies. They allege that these asset managers are transforming into backdoor channels for liberals to implement policies outside of the legislative process and leaving aside their principle, legal duty: maximizing returns for shareholders.
Critics of ESG say the policies are often arbitrary and can hurt a company’s bottom line. Moreover, ESG metrics can be gamed. Many companies, such as Tesla, receive a high ESG score under one metric while they rank poorly on another.
“Rather than being a spectator betting on the game,…
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