All articles tagged with #esg
Six years after BlackRock CEO Larry Fink pledged trillions to address climate change, Wall Street’s climate initiatives have largely stalled, with critics arguing that high-profile commitments have not yielded meaningful, systemic changes in finance.
The article discusses how former President Trump's criticisms of climate policies will not hinder the progress of new Environmental, Social, and Governance (ESG) initiatives, highlighting ongoing developments in sustainable investing and corporate responsibility.
AQR Capital Management lost a €4 billion ($4.7 billion) mandate from Dutch pension fund PFZW as the fund shifts towards a more sustainable investment strategy, reflecting a broader move among European pension funds to prioritize ESG considerations and reduce reliance on traditional money managers like BlackRock and Legal & General.
Texas has removed BlackRock from its blacklist of companies barred from state investments, following the asset manager's rollback of certain climate policies and distancing from ESG initiatives, marking a shift in the state's stance on environmental issues and investment strategies.
BlackRock has been removed from Texas' blacklist of companies boycotting fossil fuels after it rolled back many of its ESG initiatives, allowing state pension funds and investment accounts to re-engage with the firm. The move marks a significant shift in the state's stance towards BlackRock amid ongoing political and environmental debates.
President-elect Donald Trump has selected Paul Atkins, a former SEC commissioner and critic of climate disclosure regulations, to lead the Securities and Exchange Commission. Atkins, known for his support of cryptocurrency and opposition to the SEC's climate-disclosure rule, is expected to roll back efforts promoting environmental, social, and governance (ESG) investing. Environmental groups have criticized the choice, fearing it will undermine responsible investing and climate accountability. Atkins would replace Gary Gensler, who has been a proponent of the climate disclosure rule.
BlackRock, State Street, and Vanguard are being sued by Texas and 10 other Republican-led states for allegedly violating antitrust laws through their climate activism, which the states claim has reduced coal production and increased energy prices. The lawsuit accuses the asset managers of using their market power to pressure coal companies to cut output and emissions, thus raising utility bills. The states argue that market forces, not asset managers, should dictate electricity prices. The lawsuit seeks to prevent these companies from using their investments to influence shareholder resolutions that could impact coal production.
Texas Attorney General Ken Paxton has filed a lawsuit against BlackRock, State Street, and Vanguard, accusing them of conspiring to manipulate energy markets by reducing coal output to promote green energy goals, thereby driving up electricity costs. The lawsuit claims these actions violated federal and Texas antitrust laws, as well as deceptive trade practices laws, by artificially constricting coal supply and misleading investors. A coalition of 10 other states has joined the lawsuit.
After years of struggling with low returns and pressure from climate activists, ExxonMobil is regaining its confidence and market position, reminiscent of its former dominance in the oil industry.
This week, the corporate world is focused on oil, with Exxon at the center of multiple high-stakes battles. Exxon is suing shareholders over a carbon-emissions reduction proposal, challenging Chevron over an offshore oilfield stake, and celebrating the approval of its $60 billion Pioneer takeover. Despite opposition from some pension funds, Exxon appears to have regained political support, signaling a shift away from the momentum of ESG initiatives.
A class action lawsuit against American Airlines for allegedly mismanaging 401(k) funds by prioritizing ESG goals over financial returns can proceed. The suit claims that the airline violated its fiduciary duties under ERISA by investing in funds that pursue political agendas, potentially lowering the value of employees' retirement savings. The case highlights the tension between ESG investing and fiduciary obligations.
West Virginia's treasurer added Citigroup, HSBC Holdings, TD Bank, and Northern Trust Co to a list of financial firms that may be barred from state business due to their perceived boycott of the fossil fuel industry, sparking a dispute over the use of ESG factors in banking and business. The state treasurer's office claims the firms have publicly stated they will refuse or limit business with coal, oil, or natural gas companies without a reasonable business purpose, while the financial firms face pressure from both Republican officials and environmental activists and investors regarding their stance on ESG issues.
The U.S. Securities and Exchange Commission has paused the implementation of its new climate disclosure rule due to legal challenges, staying the rule while it defends it in court. The rule, which requires some public companies to report their greenhouse gas emissions and climate risks, faced immediate legal challenges and is pending review in the U.S. Court of Appeals for the Eighth Circuit. Despite the pause, the SEC intends to vigorously defend the validity of its climate rule, while companies continue to collect data and climate-related information to comply with similar rules in other jurisdictions.
Mississippi has issued a cease and desist order to BlackRock, alleging the firm has committed fraud by misleading investors through its climate policies. The state threatens a multimillion-dollar fine, targeting BlackRock's environmental, social, and governance (ESG) investing. BlackRock denies the allegations, stating its commitment to following the law and maximizing risk-adjusted returns for clients. Consumer watchdog group supports Mississippi's action, claiming it could defeat ESG policies nationwide.
US investment funds have withdrawn $13.3 billion from BlackRock as part of a campaign against the company's environmental, social, and governance (ESG) practices. This move reflects growing investor concern over ESG issues and signals a shift towards more socially responsible investment strategies.