Conservatives score another win after BlackRock kills ‘Net Zero’ membership and climate commitment

Black RockAmazon, the world’s largest asset manager, recently withdrew from its membership in the Net Zero Asset Managers (NZAM) initiative, an alliance committed to achieving net zero greenhouse gas emissions by 2050.

The company wrote last week in a letter to clients that the membership “has caused confusion regarding BlackRock’s practices and has subjected us to legal inquiries from various public officials,” according to reports.

California drivers are bracing for a potential increase in gas prices after state regulators approved tougher climate standards

BlackRock also reportedly said it was “active.” investment Portfolio managers will “continue to evaluate material climate-related risks.”

NZAM subsequently paused all activities and noted that it had launched “a review of the initiative to ensure NZAM remains fit for purpose in the new global context”.

“NZAM will also remove the statement of commitment and list of NZAM signatories from its website, along with their objectives and related case studies, pending the outcome of the review,” the company said in a press release.

Will Held, executive director of the consumer research nonprofit, told Fox Business that the move comes on the heels of a major lawsuit involving the asset management company.

In Spence v. American Airlines, Federal court It found that American Airlines and certain employees violated their legal responsibilities under the Employee Retirement Income Security Act (ERISA). The breach involved offering funds managed by BlackRock, such as the S&P 500, Russell 1000 and Russell 3000 index funds, into the company’s 401(k) plans. Heald said the ruling raises concerns that other companies offering similar funds could face similar legal challenges.

A BlackRock spokesperson told Fox Business regarding the case: “We always act independently and with a singular focus on what is in the best financial interests of our clients.” “Our sole agenda is to maximize returns for our clients, consistent with their choices.”

California taxpayers are paying nearly $20 million for a wireless electric charging project at the University of California

In a letter first obtained by Fox Business and sent to every Fortune 500 company warning of the alleged risks associated with BlackRock, Heald wrote: “Although BlackRock exited one of its net-zero alliances last week, the company proudly announced that ‘Departure’ ‘We’re not going to change the way…we manage (clients’) portfolios.’ BlackRock maintains its membership in the United Nations PRI, where it has pledged to “integrate environmental, social and governance issues into its proprietary policies and practices.”

“Therefore, the fiduciaries risk breaching their duties by continuing to entrust plan assets to BlackRock,” Held’s letter continued. “Doing the same thing going forward.”

“Net zero” commitments became widespread after the United Nations climate conference in 2021. Conservative lawmakers generally oppose these policies, arguing that they are based on questionable data and could hurt economic growth, especially in energy-producing nations. They often criticize such policies as “woke capitalism”, claiming that they can lead to higher energy costs, job losses in traditional energy sectors and unnecessary government intervention.

Companies tout “net zero” climate targets, but few have credible plans, the report finds

Heald told Fox Business he thinks so President-elect Donald Trump The win shows that many voters support rolling back some of these left-wing initiatives.

“I care about shareholders, but I care more about consumers,” Held said. “The problem is all of this “Net zero” stuff. It raises costs that must then be passed on to the consumer. “It’s about raising costs everywhere, from the gas pump to the grocery store, which contributes significantly to inflation.”

Get FOX Business on the go by clicking here

An NZAM spokesperson told Fox Business in a statement that BlackRock’s withdrawal was “disappointing” and that “climate risks are financial risks.”

“NZAM exists to help investors mitigate these risks and realize the benefits of the economic transition to net zero,” the statement read.