BlackRock CEO Larry Fink said he's no longer using the term "ESG" (environment, social and governance) because it is being politically "weaponized" and he's "ashamed" to be part of the debate on the issue.
Why it matters: How the world’s largest asset manager frames its investment approach is a leading indicator for the market. BlackRock manages $9.2 trillion.
What we're watching: Fink's latest statement is sure to generate plenty of controversy.
The backstory: BlackRock's bullish outlook on responsible environmental, social and governance investing is being blasted by conservatives as "woke capitalism" and has drawn boycotts from Florida and Texas.
- Fink has been a major proponent of factoring in climate change risks to investing strategies and corporate leadership.
What's new: In a conversation at the Aspen Ideas Festival on Sunday, Fink acknowledged that Florida Gov. Ron DeSantis' decision to pull $2 billion in assets hurt his firm in 2022, but made clear last year was his company's best with net flows of $200 billion from U.S. clients.
What he's saying: "I'm ashamed of being part of this conversation," Fink said.
- "When I write these [investment] letters, it was never meant to be a political statement. … They were written to identify longterm issues to our longterm investors," he told the crowd.
read more:
https://www.axios.com/2023/06/26/larry-fink-ashamed-esg-weaponized-desantis
Replies
Really.... what he is actually saying is dump your ESG investments... before you wake to find you are in Bed with Dylan Mulvany having a BUD LIGHT MOMENT. What he is saying is that ESG strategies are losers and those who invest in them need to switch Brewers ..to avoid long-term fiscal Identity problems.