The Blackrock boss promotes more sustainability. But his company’s stock is down 35 percent this year, significantly more than the broader S&P 500.
(Photo: Bloomberg)
New York, Frankfurt So now Missouri too. A few days ago, the US state withdrew $500 million in pension funds from the world’s largest asset manager, Blackrock. This further escalates the dispute between Republican-dominated states and Blackrock.
The trigger for the dispute was the accusation by the Republicans that Blackrock took environmental protection too seriously and was therefore damaging the oil and coal industry.
So far, the dispute has cost the fund company $1.5 billion in assets under management. That’s a tiny amount in relation to the approximately $8 trillion that Blackrock manages. But other customers could follow and increase reputational damage, analysts warn.
In the past, Blackrock boss Larry Fink has repeatedly advocated ecological, socially responsible investments that are committed to the principles of good corporate governance (ESG). Now the powerful asset manager is caught between the fronts.
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