It’s bad news for BlackRock…. The state of Louisiana is taking away all of its treasury funds and is set to liquidate all of its investments by the end of 20-22.
In a letter to BlackRock chairman and CEO Larry Fink, Louisiana state treasurer John Schroder, a Republican, noted that 560-million has already been divested and eventually 794-million will have been yanked out of BlackRock.
Schroder told fink BlackRock’s blatantly anti-fossil fuel policies would destroy Louisiana’s economy- and the divestment is necessary to protect Louisiana from actions and policies that would actively seek to harm their fossil fuel sector. In short, support of ESG (Environmental, Social, and Governance) investing is inconsistent with the best economic interests and values of Louisiana.
In 20-20, Fink used his annual must-read letter to CEOs to focus on climate change, saying the matter was becoming a “defining factor” in BlackRock’s assessment of companies. But now, republican-led states, particularly those with strong energy sectors, have objected to BlackRock and other firms promoting cleaner energy out of concern that investing with those firms means going against the interests of their states’ economies.