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LASSMAN: Financial Giants Are Suddenly Realizing The Left’s ESG Movement Has Serious Downsides
Daily Caller News ^ | October 16, 2022 | Kent Lassman

Posted on 10/19/2022 2:22:08 AM PDT by george76

Advocates for aggressive environmental, social and governance (ESG) standards have tried to achieve social and political objectives through anti-democratic and unrepresentative means.

Whether it is Michael Bloomberg and Larry Fink opining on how we ought to rapidly move away from fossil fuel energy, or heads of state and diplomats like John Kerry who love the word “existential,” it is everywhere.

ESG advocates and climate catastrophists alike have learned from Machiavelli, who wrote that there is “nothing more important than appearing to be religious.”

...

Their fundamental mistake has been to concentrate more and more resources and reputational value on achieving social change through non-democratic and unrepresentative means. That choice has now begun to catch up to them. What these advocates haven’t earned at the ballot box they have been trying to take through other, more coercive, means. More specifically, the decision to weaponize the financial industry to direct investment flows toward favored green and renewable projects has begun to backfire.

They have argued that we must decarbonize the economy. Their objective is nothing short of a radical reformation of the global economy reliant on zero-emission energy sources.

Take, for example, a 2020 letter from BlackRock CEO Larry Fink. Two years ago, he announced that ESG, and specifically climate change, would be a “defining factor” in how BlackRock would assess the companies in which they invested.

Genuflecting at the altar of radical environmentalism, investments within BlackRock’s nearly $10 trillion portfolio would have to satisfy two criteria — progress toward a low-carbon economy and their core fiduciary obligations to their investors.

Last year the Glasgow Financial Alliance for Net Zero (GFANZ) announced with great fanfare at the U.N. climate meetings that members would “work to accelerate the world’s transition to net-zero greenhouse gas emissions by 2050.” Like Fink and BlackRock, members of the GFANZ appear religious.

The organization is populated by big financial institutions happy to take credit for aligning a crucial link in the economy — banking and finance — to pursue social goals that are necessarily political in nature.

...

But there are costs for all of this fervor and for mixing political objectives with commercial goals. Most recently, the smooth sailing of GFANZ hit turbulence. Bloomberg News reported this week that “banks may not have originally understood the full litigation risks tied to signing net-zero commitments.

DLA Piper is among the law firms saying any company making a net-zero claim without scientific underpinnings may be viewed as having misled consumers.”

In case there is any misunderstanding, in the banking and finance world terms like “full litigation risks” and “misled consumers” ring out like a five-alarm fire. BlackRock and others are living with the consequences of political advocacy. What started as a trickle has emerged as a wave of state governments recoiling from the perceived focus on anything other than returns.

A few days ago, Louisiana Treasurer John Schroder informed BlackRock that he is divesting all state funds from their management due to its embrace of ESG at the expense of their fiduciary obligations and the effects on the Louisiana energy economy.

This is only the latest move by a state or state official to draw attention of Wall Street ESG advocates and BlackRock. In the past few weeks, Louisiana, South Carolina, Utah, and Arkansas have made announcements that combined will pull more than $1 billion from BlackRock management.

Previously, the Texas comptroller directed for state pension funds to boycott BlackRock and other fund companies that shun investments in the energy sector. In August, 19 attorneys general warned the fund giant that it may be violating its fiduciary duty and committing antitrust violations.

Fink has taken fire from progressives too. New York City Comptroller Brad Lander threatened to withdraw city pension funds from BlackRock management because of the firm’s departures from its climate commitments, saying that the firm’s approach “is at odds with its stated commitment to net-zero emissions.”

Last year ultra-progressive philanthropist George Soros criticized the firm for its deep ties with the Chinese government, in light of the social responsibility elements of ESG indexes.

Suddenly, business leaders like Fink not only want to appear religious but are suggesting that they’ve suddenly had a religious conversion. His 2022 letter to investors appeared to step back from stakeholder activism, declaring that BlackRock was not divesting from energy.

During a September Congressional hearing, JP Morgan Chase CEO Jamie Dimon was asked by Rep. Rashida Tlaib (Mich.-D) to pledge not to fund any more oil and gas projects.

His response, “Absolutely not and that would be the road to hell for America.”

JP Morgan Chase, along with Bank of America and Morgan Stanley, have suggested to the Financial Times that they are considering or preparing to leave GFANZ.

For its part, BlackRock launched a new webpage last week with a bold header, “Energy investing: Setting the record straight” where they make their case to the public and public officials alike.

The firm wants us to believe that it is serious about big investments for traditional energy projects. The site explains the firm’s belief that “a longer-term shift towards a less carbon-intensive economy is likely to continue.”

BlackRock deserves credit for its leadership on democratizing and improving transparency for proxy voting for pensions funds which is a particularly sore spot for the attorneys general and state treasurers. But their latest efforts ring hollow after a decade of cheerleading for ever more restrictive energy policies from Fink.

Ultimately, politicizing non-political decisions like investments and the overall structure of the energy economy is a dangerous game. There is clearly strong political pushback when approximately half of the country doesn’t agree with your political goals.

There is also significant legal jeopardy — especially in the heavily regulated financial marketplace, where it can mean federal prison to say one thing and then claim you are doing another. Indeed, the entire financial regulatory superstructure built since the New Deal is premised on checks against fraud and promoting genuine transparency.

It’s not clear what the latest iteration of BlackRock’s ESG religion is. Are they penitent or simply playing politics?


TOPICS: Business/Economy; Crime/Corruption; Front Page News; News/Current Events; Politics/Elections; US: Arkansas; US: Louisiana; US: South Carolina; US: Utah
KEYWORDS: agw; blackrock; climatechange; deepstate; esg; woke
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1 posted on 10/19/2022 2:22:08 AM PDT by george76
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To: george76

ESG is not really about environmentalism or social justice. It’s a tool for reshaping countries. Larry Fink of BlackRock is a huge fan of investing in China.

https://www.thetrumpet.com/25267-fundamentally-reshaping-america-through-finance


2 posted on 10/19/2022 2:27:46 AM PDT by gattaca (Either you will control your government, or government will control you. Ronald Reagan)
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To: george76

control


3 posted on 10/19/2022 2:34:18 AM PDT by ronnie raygun
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To: george76

Run for cover!

BlackRock Says It Won’t Stop Investing In Coal, Oil, And Natural Gas

https://oilprice.com/Latest-Energy-News/World-News/BlackRock-Says-It-Wont-Stop-Investing-In-Coal-Oil-And-Natural-Gas.html


4 posted on 10/19/2022 2:37:35 AM PDT by Libloather (Why do climate change hoax deniers live in mansions on the beach?)
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To: george76

Black Rock and Larry Fink are running an ESG extortion ring. He would make a juicy target for a Guilani type DA if we had one.


5 posted on 10/19/2022 2:37:59 AM PDT by DeplorablePaul ("..)
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To: george76

ultra-progressive philanthropist George Soros, funny name for a scumbag


6 posted on 10/19/2022 2:38:23 AM PDT by ronnie raygun
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To: george76

Bloomberg: Missouri withdrew $500 million of pension assets from BlackRock Inc., criticizing the firm for prioritizing ESG concerns over shareholder returns. “We should not allow asset managers such as BlackRock, who have demonstrated that they will prioritize advancing a woke political agenda above the financial interests of their customers, to continue speaking on behalf of the state of Missouri,” state Treasurer Scott Fitzpatrick said Tuesday in a statement. Earlier this month, Louisiana’s treasurer said his state would pull $794 million from BlackRock funds, part of a growing backlash over the firm’s stance on sustainable investing

https://www.bloomberg.com/news/articles/2022-10-18/blackrock-esg-troubles-mount-as-missouri-pulls-500-million


7 posted on 10/19/2022 2:43:20 AM PDT by gattaca (Either you will control your government, or government will control you. Ronald Reagan)
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To: george76
The organization is populated by big financial institutions happy to take credit for aligning a crucial link in the economy — banking and finance — to pursue social goals that are necessarily political in nature.

Behind all this is politics. Politics is like a disease. When it infects an issue or organization--ANY ISSUE OR ORGANIZATION--that issue/org. starts to rot and become necrotic.

8 posted on 10/19/2022 2:50:53 AM PDT by RoosterRedux
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To: george76

BTTT


9 posted on 10/19/2022 3:00:10 AM PDT by nopardons
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To: george76
Machiavelli, who wrote that there is “nothing more important than appearing to be religious.”

This quote sounds fitting, but has been taken way out of context.

Machiavelli was thinking of the power of the Catholic Church at his time. He wasn't thinking of religion in general.

Here's another comment to bring this into focus:

Church states, Machiavelli observes, are upheld by ancient religious institutions that "are so strong and well established" they "keep their rulers in power no matter what they do or how they live". "Only church leaders possess states without defending them and subjects without governing them," he continues in a tone that might have been Gibbon's.

Source: theguardian.com

Now, on the other hand, at the present time in the U.S. (and perhaps some other parts of the world), there is nothing more important than virtue signaling to the social cult of the moment (Woke).

The poison has spread from academia into corporate C-Suites and boardrooms via HR departments and Legal (with HR and Legal being the corporate Al Sharpton's of this process).

10 posted on 10/19/2022 3:12:05 AM PDT by RoosterRedux
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To: george76
Corporate officers responsible for operating performance at these Woke financial giants and other infected companies are well aware of the destructive nature of Woke management. They just don't have the power (at the moment at least) to defend themselves against HR departments and their bastard stepchildren in Legal who claim that failure to be Woke makes a company vulnerable to a vast array of racial, equity, and, eventually, climate-related lawsuits and product bans by Woke cult members.
11 posted on 10/19/2022 3:17:50 AM PDT by RoosterRedux
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To: george76

Ending “Man made climate change” is not the goal only the tool to reach their goal - large central government working hand in hand with big business, or FASCISM.


12 posted on 10/19/2022 3:50:05 AM PDT by CIB-173RDABN (I am not an expert in anything, and my opinion is just that, an opinion. I may be wrong.)
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To: RoosterRedux

I think the quote was quite appropriate. The Church was the religious power at the time, just as the wacky socialist secular earth religion (adhered to by all our leaders) is the power of our time.

Its cult leaders, ranging from all the leaders of the Dem party to the spoiled Swedish brat to the entire EU, go about trying to show off their obedience to this new religion with their pious statements in the press and their silly symbolic gestures, but of course nothing stops them from having their huge mansions, their AC, their jet-set travel, and all the finest things that petroleum products can give us.

The big difference is that there is truth to Christianity and it is fundamentally directed to the good, while the new religion is simply a fantasy political construct being imposed by people who think they stand to benefit from it.

The problem is that their phony religion can’t survive contact with the real world, and hopefully they’re about to get a serious lesson…before they destroy us all.


13 posted on 10/19/2022 3:52:50 AM PDT by livius
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To: Libloather

Black Rock is Deep State, can do and does do whatever the hell it wants.


14 posted on 10/19/2022 3:57:04 AM PDT by mewzilla (We need to repeal RCV wherever it's in use and go back to dumb voting machines.)
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To: livius
You said:
The big difference is that there is truth to Christianity and it is fundamentally directed to the good, while the new religion is simply a fantasy political construct being imposed by people who think they stand to benefit from it.

I completely agree of course and that is where I found the "fit" to be less than comfy.

The religion Machiavelli was referring to had 2 parts, one good (real Christianity) and one bad (Church/state control via religion). "Religion" as used in the article above has only 1 part, Woke (all bad).

That's why I thought this usage wasn't a good fit. Apples and oranges (or perhaps tangerines and oranges).

15 posted on 10/19/2022 4:05:59 AM PDT by RoosterRedux
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To: george76

Fascism is a set of political beliefs that includes strong control of society and the economy by the state, a powerful role for the armed forces, and the stopping of political opposition.

How did we get here? More importantly, how do we fix this satanic mess?


16 posted on 10/19/2022 4:08:32 AM PDT by Baldwin77 (Super, Duper, Ultra Maga, subject of the Ultra Maga King Donald)
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To: george76
DLA Piper is among the law firms saying any company making a net-zero claim without scientific underpinnings may be viewed as having misled consumers.”

”Scientific underpinnings” aren’t what they used to be, noe that the tyrants and fascists are redefining what (or whom) science “is”.

17 posted on 10/19/2022 4:11:28 AM PDT by Sicon ("All animals are equal, but some animals are more equal than others." - G. Orwell)
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To: george76

break the back of ESG, and you are halfway to killing off the climate scam.


18 posted on 10/19/2022 4:13:32 AM PDT by MAGAthon
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To: george76

Finally the scales tipped. Environmental policy was profitable until it wasn’t anymore.


19 posted on 10/19/2022 4:18:58 AM PDT by Openurmind (The ultimate test of a moral society is the kind of world it leaves to its children. ~ D. Bonhoeffer)
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To: george76

Ugh. Gross.

Ever since I saw Bloomberg eat pizza with his fingers during his campaign and put the rest of it back for someone else to accidentally eat, he has nothing to say that has any meaning to me.

Let’s see him park his jet and take a bus to where he needs to be.


20 posted on 10/19/2022 4:27:10 AM PDT by Cowgirl of Justice
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