U.S. Senators Are Scrutinizing Asset Manager BlackRock About the intention behind the investment decision. The group claims it used the national pension fund to influence companies to comply with global agreements.
“BlackRock appears to be using state people’s hard-earned money to get the best possible return on investment and avoid the public vote,” the paper said.
Claims Against BlackRock
Under U.S. law, a fiduciary acting on behalf of another individual or group must put the interests of their clients ahead of their own. Trustees also have a duty to uphold good faith and trust.
of letterA document dated August 4, 2022 signed by 19 US Senators is now available to the public. I question whether BlackRock is prioritizing climate change issues over the US Pensioner Retirement Fund.
Among the signatories are Arizona Attorney General Mark Brunovich, Alabama Attorney General Steve Marshall and Texas Attorney General Ken Paxton.
BlackRocks Chief Customer Officer Mark McComb previously wrote letters to a number of U.S. state officials, according to the document. He outlined BlackRocks’ position on “energy investments in pension funds”.
But senators believe Many of McComb’s statements contradict BlackRock’s earlier statements.
Senators are skeptical of BlackRock’s public appeals against climate change. In particular, efforts to “manage all managed assets to achieve net zero emissions by around 2050” are important. A group of government officials believe this may be a way to hide BlackRock’s underlying intentions.
“BlackRock’s belief that the world will need net zero by 2050 could be an excuse to force companies to adopt your preferred climate change policies.”
The report notes that this is not the first time such measures have existed. This is why many states in the United States require trustees to make “reasonable efforts to ascertain the facts relating to the investment.”
Achieving net zero emissions by 2050 may not be achievable
The senators added that the government has not enacted policies mandating net-zero emissions requirements.
In the letter, senators cited the International Energy Agency to strengthen their case. The agency suggested the target may not be as high as some governments had hoped in the past.
“Often, public commitments are not backed by the strong and credible short-term policies needed to deliver on them,” the statement said.
Senators have also drawn the line, arguing that the authority they hold by Americans elected to power is not Blackrock, but the “force of law.”
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