BlackRock tells UK 'no' to halting investment in coal, oil and gas
By Reuters
October 18, 20225:27 PM EDT

LONDON, Oct 18 (Reuters) - BlackRock, the world's biggest asset manager, told a British parliamentary committee that it will not stop investing in coal, oil and gas, and that its role was not to "engineer a specific decarbonization outcome in the real economy."

The response was part of tens of statements from companies to the Environmental Audit Committee, which is examining the role of financial institutions, including UK signatories to the Glasgow Financial Alliance for Net Zero (GFANZ). The responses were published on the government's website.

The GFANZ calls itself the world's largest coalition of financial institutions committed to transitioning the global economy to net-zero greenhouse gas emissions, with 500 members from over 45 countries.

When asked by the committee whether it would support a net-zero scenario that called for "no new investment is needed in coal, oil, and gas," BlackRock said: "No.”

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Vanguard refuses to end new fossil fuel investments

World’s second-largest asset manager cites its duty to maximise returns for clients

Chris Flood MAY 25 2022

The world’s second-largest asset manager Vanguard has refused to stop new investments in fossil fuel projects and end its support for coal, oil and gas production.

Chief executive Tim Buckley said the group, which manages $8.1tn for more than 30mn investors and is the largest investor in coal companies globally, was determined to safeguard its clients from climate risks but this would not require it to end new commitments to fossil fuel industries.

“Vanguard does not seek to direct company strategy. We engage with companies on climate change, ask them to set goals and to report how they are mitigating climate risks. That transparency will ensure that climate risks are priced appropriately by the market,” Buckley said in an interview with the Financial Times.

Companies that have a large carbon footprint now could play a critical role in the transition to a low-carbon future, he added.

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How the World’s Biggest Asset Managers are Driving the Climate Crisis
By Jessye Waxman June 27, 2023

In the last two years, many of the world’s largest financial institutions – including some of the world’s largest asset managers – have made commitments to manage their investments in line with the goals of the Paris Agreement. Despite this, institutional investors like BlackRock, Vanguard, and State Street, which manage the investments and retirement savings of millions of Americans, have continued to pour billions of dollars into companies that are building out new fossil fuel projects and locking us into a carbon fueled future.

Institutional investors have two big sources of power. As investors, they get to decide where, how, and how much of theirs and their clients’ money they invest. As shareholders, they are partial owners of many companies, which means they get to leverage their influence over corporate decisions by using their proxy voting power. By using these two in tandem, institutional investors can have a huge influence in steering the expansion or decarbonization plans of fossil fuel companies and other corporate polluters.

2023 ASSET MANAGER SCORECARD

This year’s scorecard, “Who’s Managing Your Future? An Assessment of Asset Managers’ Climate Action” published by Reclaim Finance in partnership with the Sierra Club and other advocacy groups, assesses how effectively the climate policies of the world’s largest asset managers have translated to real-world emissions reductions in the fossil fuel sector. The scorecard reveals that asset managers like BlackRock, Vanguard, and State Street are well behind the curve of where they need to be in order to hit global climate goals.

Very few asset managers across the globe are taking steps to stop financing companies engaging in fossil fuel expansion, and very few are setting the right expectations for how they will hold companies accountable for their contributions to the climate crisis. This includes weak, inadequate policies about how they will use their shareholder power to influence corporations to act.

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