Debunking BlackRock’s Defense of ESG

Responding To Claims Made In BlackRock’s September 6, 2022 Letter

1. BlackRock’s ESG Activism Is Consistent With Its Fiduciary Duties (False)
2. BlackRock Is Just Doing What Its Clients Are Demanding (False)
3. BlackRock’s ESG Activism Serves Long-Term Financial Goals (False)
4. BlackRock Is Transparent About Its ESG Activism (False)
5. BlackRock Operates With Undivided Loyalty (False)
6. BlackRock Hasn’t Engaged in “Coordinated Activity Implicating the Antitrust Laws”  (False)
7. BlackRock Does Not Tell Companies To Meet Emission Reductions Standards (False)
8. BlackRock Has Not Engaged In A Boycott of Energy Companies (False)
9. BlackRock’s ESG Activism Is Consistent With Its Fiduciary Duties (False)

BlackRock’s Claim: “Our participation in these [ESG] initiatives is entirely consistent with our fiduciary obligations.”

FALSE.  BlackRock’s ESG initiatives are an attempt to use other people’s money to further a political/social agenda that many do not agree with.  This is illegal and in breach of BlackRock’s fiduciary obligations.

Like every other asset manager that accepts funds from state pension systems, BlackRock’s fiduciary duty is simple and unequivocal.  BlackRock must act with one sole, exclusive motive: to maximize financial returns for the hard-working employees whose money they invest.

This originally appeared on Strive’s blog.  Read the whole thing here.