Larry Fink, Chief Executive Officer of BlackRock Inc.
Christopher Goodney | Bloomberg | Getty Images
Billionaire businessman and former New York City mayor Michael Bloomberg and investment giant BlackRock have released their own harsh statement defending investments in climate change and clean energy. and said requests for disclosure of climate-related risks from companies It’s smart capitalism.
The letter comes as political pressure grows over ideas for the Environment, Social and Governance Fund (ESG), which it claims will provide people with an easy way. In investing in companies operating responsibly in those areas, critics, particularly on the Republican side, say the ESG conceals a political agenda and targets some fossil fuel producers.
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Bloomberg, now worth nearly $77 billion according to Forbes, published an op-ed in his publication of the same name on Tuesday. By mocking Republican-led efforts to invest in climate solutions and clean energy.
“In a world that is rapidly moving towards clean energy. Companies that rely on fossil fuels make investors more vulnerable,” Bloomberg wrote.
“The truth is: climate risk is financial risk. The cost of climate-related events now exceeds $100 billion per year. And that only counts insured losses,” Bloomberg wrote. “Accounting for these and other losses is not a social policy. It’s a smart investment. And refusing to allow companies to do this comes with huge costs for taxpayers.”
On Wednesday, BlackRock sent a letter to the Attorney General. This protects companies’ participation in climate risk measurements. and investing in clean energy with a responsibility to perform duties that are entrusted to customers.
“Our commitment to the financial interests of our clients is unwavering and indivisible,” said Dalia Blass, BlackRock’s senior managing director and head of external affairs.
“Governments that account for more than 90% of the GDP The world is striving to reach net zero levels in the next decade. We believe that investors and companies that are foresight in terms of climate risks and implications for energy transition will increase longevity. Long-term financial results,” Blass writes. “These opportunities cross the political spectrum.”
Former New York City Mayor Michael Bloomberg speaks during a meeting with Earthshot award winners and finalists at the Glasgow Science Center during the UN Climate Change Conference (COP26) in Glasgow, Scotland, UK, November 2, 2021.
Alastair Grant | Archyde.com
BlackRock’s letter has responded to a special August 4 letter from 19 state attorneys general to BlackRock CEO Larry Fink, in which they oppose what they call bias against fossil fuels.
“BlackRock’s past public pledges state that it has used citizens’ assets to pressure companies. Follow international agreements such as the Paris Agreement that compels the elimination of fossil fuels. increase energy prices drive inflation and weakening national security United States,” the attorney general said.
State-specific lawmakers have adopted laws for their own states. For example, later in August, Texas accountant Glenn Hegar accused 10 financial firms, including BlackRock and 350 investment funds, that it operated. “Booting energy companies”
BlackRock opposes the idea that energy companies are boycotting or operating with a political agenda.
Black Rock is It is “one of the largest investors in public energy companies” and has a $170 billion investment in a US energy company. Recent investments include natural gas. Renewable energy and “carbonization technologies that require funding to scale up,” BlackRock said in the letter.
BlackRock also said it requested weather-related financial disclosures from companies. to improve transparency and can make quality investment decisions for customers
Meanwhile, Bloomberg said measuring climate risk was just a fundamental investment.
“Responsible money manager especially those who have a duty to trust taxpayers. Try to build a diversified portfolio. (including energy) identify and mitigate risks It takes into account the macro trends that shape industry and markets (such as the continued decline in clean energy prices),” Bloomberg wrote.
“That’s Investment 101 and ESG’s Republican critics don’t understand, or they’re doing it for the benefit of fossil fuel companies. It could be both.”
