Gabby Brown, 914-261-4626, gabby.brown@sierraclub.org
Myriam Fallon, 708.546.9001, myriam@sunriseproject.net
Today, after more than a year of increasing pressure from climate activists, investors, legislators, and thought leaders, BlackRock CEO Larry Fink, in his highly anticipated annual letter, announced a sweeping new set of policies that aim to put climate change and sustainability at the center of BlackRock’s business model. BlackRock is the world’s largest asset manager with almost $7 trillion in assets under management.
In response to today’s announcement Diana Best, senior strategist for the Sunrise Project which is a core partner of the BlackRock’s Big Problem campaign, said: “BlackRock’s new initiatives match the size of the crisis we’re seeing in 2020 and are the direct result of an outpouring of pressure from the global climate movement. BlackRock beginning its shift of capital out of fossil fuels, including today’s divestment of coal in its actively managed funds, is a fantastic start and instantly raises the bar for competitors such as Vanguard and State Street Global Advisors. We will be looking for additional leadership from the company in, as Larry Fink put it, ‘fundamentally reshaping finance to deal with climate change,’ including additional shifts of capital out of fossil fuels.”
As one of the largest shareholders in most companies, an important litmus test for BlackRock’s new climate leadership will be how it votes in the 2020 shareholder season on the many climate resolutions that have already been filed, including at other major financial institutions.
Jeanne Martin, campaign manager at ShareAction, says: “BlackRock’s coal divestment decision is yet another significant blow to the already dying market, yet major banks like Barclays continue to prop up coal-heavy companies. If BlackRock is serious about its commitment to phase out thermal coal, it should use its voting rights to get major coal financiers to do the same. Larry Fink talks a lot about companies’ purpose, but there are questions left unanswered about what BlackRock’s own purpose is, and how its stewardship delivers the social, environmental, and financial performance that its clients are looking for.”
A 2019 report from Majority Action showcased BlackRock’s abysmal voting record and lack of leadership when it found that, if BlackRock and Vanguard had voted in favor, 16 critical climate resolutions would have passed at US companies in 2019.
Last week, a coalition of leading climate, youth, and Indigenous organizations launched a major new mobilization, Stop the Money Pipeline, that will pressure banks, insurance companies, and asset managers including BlackRock to stop financing fossil fuels and deforestation and start respecting human rights and Indigenous sovereignty.
Sierra Club campaign representative Ben Cushing said: “The financial giants propping up the industries driving us towards climate disaster can no longer escape public scrutiny. As the biggest financial institution in the world, BlackRock’s announcement today is a major step in the right direction and a testament to the power of public pressure calling for climate action. But BlackRock will continue to be the world’s largest investor in coal, oil, and gas. It is time to turn off the money pipeline to dirty fossil fuels for good. BlackRock should expand on its commitments and other financial institutions should follow suit.”
Today’s announcement, however, does not indicate how BlackRock will address issues related to indgenous rights or deforestation, the second-largest driver of climate change.
Moira Birss, finance campaign director at Amazon Watch, said: "This announcement is a major step in the right direction for BlackRock. However, It still leaves questions about how it plans to address the fact that it is the world’s biggest investor in deforestation. Will deforestation risk be part of its new engagement and voting priorities? What about indigenous rights? The Amazon fires last fall and the wildfires in Australia today show the immense risk to the climate, forests, and indigenous peoples that deforestation-risk commodities pose. Consistently bad actors like Brazilian beef giant JBS won’t change without strong, concrete action from asset managers like BlackRock."
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For more information or interviews:
Myriam Fallon, 708.546.9001, myriam@sunriseproject.net
Gabby Brown, 914-261-4626, gabby.brown@sierraclub.org
Photos from past protests against BlackRock can be found here: https://drive.google.com/drive/folders/1_nJCcXL7iuih47CV8_bZUOes59S4UIhV
Interviews available include:
Ben Cushing - Sierra Club Campaign Representative - Beyond Dirty Fuels
Moira Birss - Finance Campaign Director for Amazon Watch
Diana Best - Senior Strategist for the BlackRock’s Big Problem campaign
Eli Kasargod- Staub - Executive Director, Majority Action and the Climate Majority Project
Timothy Smith - Director of ESG Shareowner Engagement at Boston Trust Walden
About the Sierra Club
The Sierra Club is America’s largest and most influential grassroots environmental organization, with more than 3.5 million members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.