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BlackRock’s Fink Has Stopped Using The Term ESG Despite Weaponization

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BlackRock's Fink Has Stopped Using The Term ESG Despite Weaponization

(CTN News) – Larry Fink, the boss of BlackRock (NYSE:BLK) and a leader in the business world’s adoption of environmental, social, and corporate governance (ESG) standards, has stopped using the term, saying it has become too politicized over the years.

However, Fink told the Aspen Ideas Festival that the world’s largest asset manager has not changed its stance on the issue of environmental, social, and governance (ESG).

There has been an increasing political polarization around environmental, social, and governance issues in some parts of the western world, particularly in the United States, which has become a catch-all term for a range of ethically responsible business practices, from reducing carbon emissions to curbing workplace discrimination.

A number of Republican politicians have criticized ESG as a way for the corporate world to implement what they view as a politically liberal agenda, triggering a backlash from Democrats, who stand to benefit from its implementation.

As a result of the controversy, some Wall Street firms have backed away from their ESG commitments, with insurers abandoning the United Nations-backed climate alliance last month being the latest example.

It should be noted that BlackRock itself has been the target of investigations by some Republican-controlled states, and even of a boycott of its investments in Texas during the last few years.

The word ESG is no longer used by me, because it has been weaponized by the far left and weaponised by the far right as well,” Fink explained.

In spite of this, he noted that dropping references to ESG would not have an impact on BlackRock’s stance.

There will continue to be discussions between the firm and companies in which it has stakes regarding decarbonization, corporate governance, and social issues that need to be addressed, according to him.

In light of the issue of climate change, BlackRock has sought to strike a balance between continuing to invest in fossil fuel companies while nudging them to adopt energy transition plans at the same time.

As a result, the company has projected that by 2030 at least three quarters of its investments will be with issuers of securities which have scientific targets to reduce greenhouse gas emissions on a net basis by the end of the century.

A year ago, Fink reported that BlackRock had lost about $4 billion in managed assets because of the backlash against ESG, a tiny fraction of its $9 trillion under management, as a result of the backlash against ESG.

In his speech at the Aspen conference, he reiterated that BlackRock’s business had not been adversely affected by the crisis.

There have been some great things happening this year, but I’m ashamed to be a part of this conversation,” said Fink, adding that his annual letters to investors addressing environmental, social, and governance (ESG) issues were never intended to be political statements.


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Salman Ahmad is a seasoned writer for CTN News, bringing a wealth of experience and expertise to the platform. With a knack for concise yet impactful storytelling, he crafts articles that captivate readers and provide valuable insights. Ahmad's writing style strikes a balance between casual and professional, making complex topics accessible without compromising depth.

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