A growing number of corporations are exiting a left-wing “climate cartel” amid pressure from congressional Republicans, The Daily Wire learned on Friday.
The committee has been investigating organizations like the Net Zero Asset Managers (NZAM) initiative and Climate Action 100+ which it says have worked together with corporations to push leftist ESG goals and decarbonization of the American economy. Earlier this month, NZAM paused its work after a flurry of high-profile companies, like BlackRock, left the company.
The exodus from NZAM also includes companies like AllianceBernstein, Northern Trust Asset Management, HASI, Muzinich and Co., Breckinridge Capital Advisors, Stonepeak, V-Square Quantitative Management, and SKY Harbor Capital Management, the committee told The Daily Wire.
Many of the companies, including Northern Trust Asset Management and SKY Harbor Capital Management, left after being contacted by the committee.
“More than 70 companies have left woke ESG organizations like NZAM and Climate Action 100+ since the Committee’s investigation started,” Committee Chair Jim Jordan (R-OH) told The Daily Wire. “This a huge win for freedom and American prosperity. All U.S. financial institutions should follow suit and abandon the climate cartel.”
At one point, NZAM, which says its goal is to push net zero greenhouse gas emission by 2050 or sooner, boasted its members controlled over $57 trillion in assets. The company has now suspended all activities following the departures.
BlackRock, which controls over $11 trillion in assets, <a href="https://www.dailywire.com/news/blackrock-exits-climate-activist-group-after-pressure-from-republicans" target="_blank" rel="noopener">left NZAM</a> on January 9, one day before a <a href="https://www.dailywire.com/news/exclusive-jim-jordan-demands-60-companies-provide-answers-on-climate-activism" target="_blank" rel="noopener">deadline</a> given by the company by the Judiciary Committee to respond to questions about whether its investment policies were impacted by its involvement with climate groups.
<a href="https://get.dailywire.com/subscribe/plus/?_gl=1*1lail3r*_gcl_aw*R0NMLjE3MzIyMDEyNDkuQ2owS0NRaUEwZnU1QmhEUUFSSXNBTVhVQk9JSkM0VnNsMFVreURxYXUxVWVEVWdOdjZkNzR2Y1pEeEZQeHVBcGl2R3BLaTdBMjVzT1p5TWFBdG1nRUFMd193Y0I.*_gcl_au*NDUxNDQ0NzYwLjE3MzY3ODI2NDY.*_ga*MTc2NzM0NDQ2NS4xNzI4OTA5Nzkx*_ga_CZKR9ZYKJP*MTczNjk1NzYwMy4zNDAuMS4xNzM2OTU3NzE2LjYwLjAuMA.." target="_blank" rel="noopener">CELEBRATE #47 WITH 47% OFF DAILYWIRE+ MEMBERSHIPS + A FREE $20 GIFT</a>
In a letter explaining its withdrawal, BlackRock executives admitted that the company&#8217;s involvement with NZAM “caused confusion regarding BlackRock’s practices and subjected us to legal inquiries from various public officials.”
“Our participation in NZAM didn’t impact the way we managed client portfolios,” the company said. “Therefore, our departure doesn’t change the way we develop products and solutions for clients or how we manage their portfolios.”
The Judiciary Committee has been investigating the cooperation between climate groups and corporations for the last two years and released a <a href="https://judiciary.house.gov/sites/evo-subsites/republicans-judiciary.house.gov/files/evo-media-document/2024-06-11%20Climate%20Control%20-%20Exposing%20the%20Decarbonization%20Collusion%20in%20Environmental%2C%20Social%2C%20and%20Governance%20(ESG)%20Investing.pdf">report</a> called “Climate Control: Exposing The Decarbonization Collusion in Environmental, Social, and Governance (ESG) Investing,” in June.
Companies like BlackRock have also been under pressure at the state level. In November, 11 Republican attorneys general, led by Texas Attorney General Ken Paxton, <a href="https://www.dailywire.com/news/republican-ags-sue-blackrock-say-it-has-conspired-against-coal-production" target="_blank" rel="noopener">filed a lawsuit</a> in November against BlackRock over its involvement with groups like NZAM.

The Inauguration Of Donald J. Trump As The 47th President

‘Win For Freedom’: House Republicans Celebrate Exodus Of Companies From ‘Climate Cartel’

BlackRock

Climate Change

House Judiciary Committee

Jim Jordan

BlackRock announced this week that it was leaving a major climate activist group after Republicans criticized its involvement with the group. 
The company <a href="https://www.bloomberg.com/news/articles/2025-01-09/blackrock-leaves-major-climate-group-amid-wall-street-exodus" target="_blank" rel="noopener">said</a> in a letter that it would be leaving the Net Zero Asset Managers (NZAM) initiative, an organization of asset managers <a href="https://www.netzeroassetmanagers.org/">committed</a> to “supporting the goal of net zero greenhouse gas emissions by 2050 or sooner.” At one point, NZAM boasted its members controlled over $57 trillion in assets. 
BlackRock’s announcement comes after 11 Republican attorneys general, led by Texas AG Ken Paxton, <a href="https://www.dailywire.com/news/republican-ags-sue-blackrock-say-it-has-conspired-against-coal-production" target="_blank" rel="noopener">filed a lawsuit</a> in November against the asset manager over its involvement with groups like NZAM. Texas’ lawsuit accused BlackRock of violating antitrust laws by allegedly engaging in a conspiracy with other asset managers to constrict the market for coal. BlackRock has denied the allegations and said the suit is without merit. 
BlackRock’s letter, first obtained by Bloomberg, acknowledged that its involvement with NZAM “caused confusion regarding BlackRock’s practices and subjected us to legal inquiries from various public officials.”
“Our participation in NZAM didn’t impact the way we managed client portfolios,” the company said. “Therefore, our departure doesn’t change the way we develop products and solutions for clients or how we manage their portfolios.”
Despite exiting NZAM, BlackRock said it would “continue to assess material climate-related risks, alongside other investment risks, in delivering for clients.”
NZAM, which also lost the involvement of asset giant Vanguard, <a href="https://thehill.com/policy/energy-environment/5077576-blackrock-leaves-net-zero-climate-group/" target="_blank" rel="noopener">said</a> it was sad to see BlackRock go.
“We are disappointed to see any investor withdraw, but as a voluntary initiative, we respect any individual decisions signatories take,” NZAM told The Hill. “Climate risk is financial risk. NZAM exists to help investors mitigate these risks and to realise the benefits of the economic transition to net zero.”
<a href="https://get.dailywire.com/subscribe/plus/">JOIN THE MOVEMENT IN ’25 WITH 25% OFF DAILYWIRE+ ANNUAL MEMBERSHIPS WITH CODE DW25</a>
Will Hild, the executive director of Consumer’s Research, an organization opposed to the injection of politics into business, told The Daily Wire that the result of companies like BlackRock’s involvement in NZAM was to raise prices for consumers and lower the return for investors. 
“This should be music to the ears of every consumer in the entire country,” he said of BlackRock leaving NZAM. “It’s a good thing for consumers because it’s going to help alleviate some of the inflationary effects of ESG and net zero.”
He attributed BlackRock’s exit to Donald Trump&#8217;s re-election and Paxton&#8217;s lawsuit.

First Day Of Trading For 2025 At The NYSE And NASDAQ

BlackRock Exits Climate Activist Group After Pressure From Republicans

Economics

Texas

Republicans on the House Judiciary Committee demanded Friday that over 60 companies provide answers on their involvement with leftist climate organizations, according to letters first shared with The Daily Wire. 
House Judiciary Chair <a href="https://www.dailywire.com/topic/jim-jordan" target="_blank" rel="noopener">Jim Jordan</a> (R-OH) and Rep. Thomas Massie (R-KY) told large companies, including BlackRock, State Street Global Advisors, and J.P. Morgan, to preserve all documents related to their involvement with the Glasgow Financial Alliance for Net Zero and the Net Zero Asset Managers. They also asked whether their involvement with those organizations had any influence on their company policies and asset management. 
The lawmakers wrote that “the Committee has uncovered evidence that financial institutions are colluding with climate activists through initiatives like the Glasgow Financial Alliance for Net Zero (GFANZ) and the Net Zero Asset Managers (NZAM) initiative to collectively adopt and impose left-wing environmental, social, and governance (ESG)-related goals, which may violate U.S. antitrust law.”
“The Committee has obtained evidence that members of GFANZ and NZAM attempt to impose a ‘net-zero’ climate agenda on U.S. companies in their investment portfolios,” they added. 
The Glasgow Financial Alliance for Net Zero describes itself as “a global coalition of leading financial institutions committed to accelerating the decarbonization of the economy.&#8221; Net Zero Asset Managers, which says its signers have more than $57.5 trillion under management, is “an international group of asset managers committed, consistent with their fiduciary duty to their clients and beneficiaries, to supporting the goal of net zero greenhouse gas emissions by 2050 or sooner.”
<a href="https://get.dailywire.com/gift-guide/" target="_blank" rel="noopener">CHECK OUT THE DAILY WIRE HOLIDAY GIFT GUIDE</a>
In the letter to J.P.Morgan Asset Management shared with The Daily Wire, the lawmakers ask if its membership in the organization has “altered its ‘stewardship and engagement strategy’ with its portfolio companies&#8221; and if it had taken any actions to push the companies it invests in toward net zero. 
The lawmakers also asked the companies if their involvement with both climate initiatives had impacted its voting policy, requesting an answer to its questions by January 10, 2025. 
“The Committee has reason to believe that J.P. MorganAsset Management may be in possession of documents and communications related to GFANZ and NZAM’s collusive activity that would inform potential legislative reforms,” the lawmakers wrote. “This letter serves as a formal request to preserve all existing and future records and materials relating to the topics addressed in this letter.”
In June, the House Judiciary Committee <a href="https://www.dailywire.com/news/house-republicans-take-aim-at-climate-cartel-pushing-decarbonization-of-american-industry">released</a> a report saying that there was a “climate cartel” working together to push companies to impose radical environmental goals and the decarbonization of American industry.

House Judiciary Committee Holds Hearing On Oversight Of FBI

EXCLUSIVE: Jordan, Massie Demand 60+ Companies Provide Answers On Climate Activism

JP Morgan

Thomas Massie

Eleven Republican attorneys general sued <a href="https://www.dailywire.com/topic/blackrock" target="_blank" rel="noopener">BlackRock</a> on Wednesday, alleging it had engaged in a conspiracy with other massive asset managers to constrict the market for coal.
Led by Texas, the attorneys general filed a <a href="https://www.texasattorneygeneral.gov/sites/default/files/images/press/States%20v%20BlackRock%20Complaint%20Filed.pdf" target="_blank" rel="noopener">suit</a> on Wednesday in U.S. District Court for the Eastern District of Texas alleging that BlackRock, Vanguard, and State Street have worked together to push climate policies in order to artificially restrict the supply of coal. The states say that the financial giants, which <a href="https://money.usnews.com/investing/news/articles/2024-11-27/blackrock-state-street-vanguard-sued-by-republican-states-over-climate-accords" target="_blank" rel="noopener">control</a> around $26 trillion, have violated federal and state antitrust laws.
“Texas will not tolerate the illegal weaponization of the financial industry in service of a destructive, politicized ‘environmental’ agenda. BlackRock, Vanguard, and State Street formed a cartel to rig the coal market, artificially reduce the energy supply, and raise prices,” <a href="https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-sues-blackrock-state-street-and-vanguard-illegally-conspiring-manipulate">said</a> Texas Attorney General Ken Paxton. “Their conspiracy has harmed American energy production and hurt consumers. This is a stunning violation of State and federal law.”
The suit was joined by Alabama, Arkansas, Indiana, Iowa, Kansas, Missouri, Montana, Nebraska, West Virginia, and Wyoming. They argue that the asset managers have weaponized their holdings in coal companies to restrict the industry and raise prices.
“Defendants have leveraged their holdings and voting of shares to facilitate an output reduction scheme, which has artificially constrained the supply of coal, significantly diminished competition in the markets for coal, increased energy prices for American consumers, and produced cartel-level profits for Defendants,” the suit says.
“Competitive markets — not the dictates of far-flung asset managers — should determine the price Americans pay for electricity,” the Republican AGs added, saying that the companies pursued environmental, social, and governance policies that harmed investors&#8217; bottom line.
<a href="https://get.dailywire.com/gift-guide/" target="_blank" rel="noopener">CHECK OUT THE DAILY WIRE HOLIDAY GIFT GUIDE</a>
Both State Street and BlackRock responded to the lawsuit by saying it was without merit.
&#8220;State Street acts in the long-term financial interests of investors with a focus on enhancing shareholder value. As long-term capital providers, we have a mutual interest in the long-term success of our portfolio companies. T​his lawsuit is baseless and look forward to presenting the facts through the legal process,&#8221; State Street said.
“BlackRock&#8217;s holdings in energy companies are regularly reviewed by federal and state regulators. We make these investments on behalf of our clients, and our focus is on delivering them financial returns,” the company told The Daily Wire.
“The suggestion that BlackRock has invested money in companies with the goal of harming those companies is baseless and defies common sense. This lawsuit undermines Texas&#8217; pro-business reputation and discourages investments in the companies consumers rely on,” it added.
BlackRock has long faced criticism from conservatives who have argued that it prioritizes leftist activism over customer benefit. The asset manager has been involved in climate-focused groups like the Net Zero Asset Managers initiative, the United Nations Principles for Responsible Investment, and Ceres.

Climate activists protest against fossil fuel use in New York

Republican AGs Sue BlackRock, Say It Has Conspired Against Coal Production

Coal

Ken Paxton

Social Issues

U.S.

Vanguard

A “<a href="https://www.dailywire.com/topic/climate-change" target="_blank" rel="noopener">climate cartel</a>” of activists and financial organizations is working together to push American companies to impose radical environmental goals, according to a report published Tuesday by the House Judiciary Committee.
The new <a href="https://judiciary.house.gov/sites/evo-subsites/republicans-judiciary.house.gov/files/evo-media-document/2024-06-11%20Climate%20Control%20-%20Exposing%20the%20Decarbonization%20Collusion%20in%20Environmental%2C%20Social%2C%20and%20Governance%20(ESG)%20Investing.pdf" target="_blank" rel="noopener">report</a>, called &#8220;Climate Control: Exposing The Decarbonization Collusion in Environmental, Social, and Governance (ESG) Investing,” features the preliminary findings of the committee’s investigation into the relationship between climate activists and large financial institutions. The committee surveyed 272,294 documents and 2,565,258 pages of non-public information, according to the report.
“The Committee’s ongoing investigation into collusion between left-wing activists and major financial institutions has revealed that a climate cartel is working to decarbonize the U.S. economy — with disastrous implications for American consumers,” the report said. “The climate cartel has declared war on our way of life, escalating its attacks on free markets and demanding that companies slash output of the critical products and services that allow Americans to drive, fly, and eat.”
Much of the 41-page report examined the influence of Climate Action 100+, an investors group that pushes environmental, social, and governance initiatives and controls about $68 trillion in assets.
For example, members of Climate Action 100+ are required to ask the companies they work with to “take necessary action on climate change” by “halving emissions by 2030 and delivering net zero GHG emissions by 2050, in line with the goals of the Paris Agreement to pursue efforts to limit warming to 1.5°C.”
One document obtained by the committee said that Climate Action 100+ needed to “show that engagement can have teeth—and that investors are willing to escalate pressure against companies that refuse to act.”
The report said that this push for decarbonization would raises costs of fossil fuel, aviation, and farming.
Another one of the leftist groups discussed in the report is Ceres, an environmental nonprofit that helped co-found Climate Action 100+.
Ceres says that it is leading a “coordinated push to harness the extraordinary power of financial system leaders to accelerate the transition of the global economy to net-zero by steering massive flows of capital . . . away from investments that lock in greenhouse gas emissions.
The committee said that Ceres has so far refused to respond to its requests for access to its Investor Portal, which it uses to organize “engagements” with shareholders and corporations.
<a href="https://onelink.to/dwapp" target="_blank" rel="noopener noreferrer" aria-describedby="sk-tooltip-9096" data-saferedirecturl="https://www.google.com/url?q=https://onelink.to/dwapp&amp;source=gmail&amp;ust=1700760801843000&amp;usg=AOvVaw2PQrVSrJfhxNb4LcARqniG">CLICK HERE TO GET THE DAILYWIRE+ APP</a>
“Despite the centrality of the Ceres Investor Portal to the climate cartel’s operations and possible antitrust violations, and its obvious responsiveness to the categories of information demanded by the Committee’s subpoena, Ceres has refused to provide the Committee with meaningful access to these materials,” the report said, adding that all legal operations remain on the table.
The report also highlighted the work of the California Public Employee&#8217;s Retirement System through proxy voting and other means to push for policies in accordance with Climate Action 100+ and Ceres.
A spokesman for Climate Action 100+ said that criticism from Republicans was a &#8220;politicized&#8221; interpretation of their activities.
&#8220;Investors who undertake investor stewardship on climate change are pursuing a common-sense approach driven by the pursuit of delivering the best long-term returns for their clients and beneficiaries. Therefore, it is regrettable that this topic, and Climate Action 100+, specifically, has been unduly politicized,&#8221; the spokesman said. 
The release of the report comes as Republican lawmakers have been scrutinizing the connections between climate activists and financial asset manager giants like BlackRock and Vanguard. Earlier this year, BlackRock, JPMorgan, and State Street all <a href="https://www.dailywire.com/news/financial-giants-pull-14-trillion-from-climate-group-that-pressures-companies-to-take-action-on-climate-change" target="_blank" rel="noopener">announced</a> that they would be pulling back from their participation in Climate Action 100+, pulling about $14 trillion in investments.

Citi’s Manhattan Staff Are Now No. 1 Target in ‘Summer of Heat’

House Republicans Take Aim At ‘Climate Cartel’ Pushing Decarbonization Of American Industry

Congress

Environmentalism

<a href="https://www.dailywire.com/topic/oklahoma" target="_blank" rel="noopener">Oklahoma</a> public retirement funds are being “weaponized” to back decarbonization, racial audits, and push pro-abortion policies, according to a new watchdog report shared exclusively with The Daily Wire.
The <a href="https://dw-wp-production.imgix.net/2024/04/OPERS-Woke-Investment-Managers-Final.pdf" target="_blank" rel="noopener">report</a>, from the American Accountability Foundation, found that three asset managers used by the Oklahoma Public Employees Retirement System (OPERS) have used money from state retirement accounts to support shareholder proposals rooted in woke politics and environmental, social, and governance principles. According to the report, three firms — State Street Global Advisors, Newton Capital Management, and Westfield Capital Management — have used some of the $1.7 billion they manage for OPERS&#8217; portfolio to support at least 216 ESG-tinged proposals that take aim at the oil industry and push leftist social values.
The AAF obtained data on all proxy votes cast by asset managers for Oklahoma’s public retirement funds since 2022 through an open records request. “Altogether, we identified 216 votes in support of troubling policies, including racial equity audits, gender pay gap reports, initiatives to silence conservatives and trade associations, abortion rights, and the radical climate agenda,” the watchdog wrote in a memo shared with The Daily Wire.
The memo comes as Oklahoma Governor Kevin Stitt (R) and Oklahoma Treasurer Todd Russ have <a href="https://oklahoma.gov/governor/newsroom/newsroom/2023/march2023/governor-stitt-joins-18-governors-in-joint-statement-opposing-ha.html" target="_blank" rel="noopener">spoken out</a> against ESG investing, calling the push harmful to the state. OPERS did not respond to a request for comment from The Daily Wire.
State Street, alongside BlackRock, were both supposed to be dropped by OPERS because of new legislation restricting state entities from working with companies that are opposed to the oil and gas industry, but <a href="https://www.pionline.com/esg/oklahoma-pers-will-keep-blackrock-state-street-after-approving-divestment-exemption" target="_blank" rel="noopener">were exempted</a> after a vote from the board of OPERS.
In the last two years, State Street, Newton, and Westfield all backed resolutions that “call for increased climate disclosures or greenhouse gas emissions targets,” according to the AAF. For example, Newton backed a proposal for energy company Phillips 66 to adopt greenhouse gas “emissions reduction targets aligned with the Paris Agreement goal” at the company’s May 2022 shareholder meeting.
“We therefore support the Company to set emission reduction targets for all emissions: the emissions of the company’s operations and the emissions of its energy products (Scope 1, 2, and 3). Reducing Scope 3 emissions, the vast majority, is essential to limiting global heating,” the resolution said.
<img loading="lazy" decoding="async" class="wp-image-724665 size-large aligncenter" src="https://dw-wp-production.imgix.net/2024/04/Screen-Shot-2024-04-16-at-5.50.21-PM-883x576.png" alt="" width="883" height="576" srcset="https://dw-wp-production.imgix.net/2024/04/Screen-Shot-2024-04-16-at-5.50.21-PM-883x576.png 883w, https://dw-wp-production.imgix.net/2024/04/Screen-Shot-2024-04-16-at-5.50.21-PM-300x196.png 300w, https://dw-wp-production.imgix.net/2024/04/Screen-Shot-2024-04-16-at-5.50.21-PM-768x501.png 768w, https://dw-wp-production.imgix.net/2024/04/Screen-Shot-2024-04-16-at-5.50.21-PM-1536x1002.png 1536w, https://dw-wp-production.imgix.net/2024/04/Screen-Shot-2024-04-16-at-5.50.21-PM.png 1799w" sizes="(max-width: 883px) 100vw, 883px" />In another instance, Newton voted to back a proposal for Wells Fargo to conduct a racial equity audit, according to the data shared with The Daily Wire.
Citing the death of George Floyd and “systematic racism,” the resolution urged the bank’s board of directors “to oversee an independent racial equity audit analyzing WFC’s adverse impacts on nonwhite stakeholders and communities of color.”
In a supporting statement, the resolution objected to $135,000 in Wells Fargo political donations going to “members of Congress who objected to certifying the election results.”
In another example from June 5, 2023, Westfield voted in support of a resolution saying that UnitedHealth Group should create a “report on congruency of political spending with company values and priorities.” The reason the report was needed was because of employee PAC donations to politicians “working to weaken abortion access” and backing of “state attorneys general seeking to revoke LGBTQ civil rights.”
<a href="https://onelink.to/dwapp" target="_blank" rel="noopener noreferrer" aria-describedby="sk-tooltip-9096" data-saferedirecturl="https://www.google.com/url?q=https://onelink.to/dwapp&amp;source=gmail&amp;ust=1712932862202000&amp;usg=AOvVaw0plT8RRdMy9XUpIhocnjQS">CLICK HERE TO GET THE DAILYWIRE+ APP</a>
A similar resolution backed by Newton said that Coke’s diversity, equity, and inclusion policies may be hampered because of a Georgia law protecting unborn children six weeks into development. The resolution asked for a report “detailing any known and potential risks or costs to the company caused by enacted or proposed state policies severely restricting reproductive rights.”
Tom Jones, the president of the AAF, told The Daily Wire that the will of Oklahomans was being subverted by the use of OPERS funds to push ESG initiatives.
“For Oklahoma&#8217;s pension funds to be hijacked to push ESG nonsense is an affront to democracy,” Jones said. “The American people should decide our laws, not be dictated to by virtue-signaling corporations and government bureaucrats. Americans never voted to force businesses to conduct &#8216;racial equity audits&#8217; or to shut down oil and gas companies, yet that is what is being imposed on us by OPERS and the corporate advisers they hire. It&#8217;s time to put an end to this madness.”

Cash dollar bills and stock market indicators

EXCLUSIVE: Watchdog Warns About ‘Weaponization’ Of Red State’s Pension Funds For Leftist Causes

Oklahoma

Retirement funds

Wokeness

Mississippi sent a cease-and-desist letter to <a href="https://www.dailywire.com/topic/blackrock" target="_blank" rel="noopener">BlackRock</a> on Tuesday accusing the financial asset manager of misleading investors about its environmental, social, and governance policies and threatening to level a steep fine on the firm. 
The letter, from <a href="https://www.dailywire.com/topic/mississippi" target="_blank" rel="noopener">Mississippi</a> Secretary of State Michael Watson, <a href="https://www.sos.ms.gov/press/mississippi-secretary-state-issues-order-against-blackrock-alleged-securities-fraud-related" target="_blank" rel="noopener">says</a> that BlackRock may face a multimillion-dollar financial penalty if it does not comply with the state’s demands. BlackRock, which manages over $10 trillion in assets, has faced increasing scrutiny from Republican officials over its investing policies, especially in relation to its links to <a href="https://www.dailywire.com/news/financial-giants-pull-14-trillion-from-climate-group-that-pressures-companies-to-take-action-on-climate-change" target="_blank" rel="noopener">climate activist</a> groups. 
“BlackRock has made and continues to make untrue statements of material fact, and to omit material facts to make its statements not misleading, to investors and potential investors in Mississippi,” a copy of the <a href="https://dw-wp-production.imgix.net/2024/03/Final-CD-BR.pdf" target="_blank" rel="noopener">letter</a> obtained by The Daily Wire says. “These misrepresentations pertain to BlackRock’s provision of investment services, especially its involvement in pushing Environmental, Social, and Governance (‘ESG’) factors on portfolio companies. Additionally, many of BlackRock’s acts, practices, and courses of business operate or would operate as a fraud or deceit upon investors and potential investors in Mississippi.”
Watson said that the letter and notice of intent to impose administrative penalty was part of Mississippi&#8217;s efforts to go after politicized investment companies. 
“Investment companies will not push their political agenda on Mississippians, especially through fraudulent and deceptive means,” Watson said. “All citizens should have the opportunity to make informed and educated decisions when investing their hard-earned money. If not, our office will hold these bad actors accountable.”
The letter alleges that there are two categories of false and misleading statements made by BlackRock to investors. The first claims that while BlackRock says it doesn’t use all funds for ESG purposes it has already committed “to use all assets under management to advance the environmental agenda of reducing carbon emissions to ‘net zero.’”
The second category includes statements from BlackRock indicating that ESG-related investing brings positive financial results. Watson’s letter disputes this saying that is misleading “because the consideration of ESG factors does not provide an indication of better financial returns or current or future risk profiles.”
BlackRock has <a href="https://www.washingtonexaminer.com/policy/finance-and-economy/2941273/mississippi-slaps-blackrock-cease-and-desist-order-esg/" target="_blank" rel="noopener">responded</a> to the letter, saying that Mississippi&#8217;s allegations against it were untrue. 
<a href="https://onelink.to/dwapp" target="_blank" rel="noopener noreferrer" aria-describedby="sk-tooltip-9096" data-saferedirecturl="https://www.google.com/url?q=https://onelink.to/dwapp&amp;source=gmail&amp;ust=1711722593099000&amp;usg=AOvVaw2BYobdhGnzBnBpziY8U6Zu">CLICK HERE TO GET THE DAILYWIRE+ APP</a>
“Many policymakers and government officials have ideas on how we should invest our clients’ assets,” BlackRock said. “We are always bound to invest consistent with our clients’ choices, their best financial interests, and applicable law. Our only agenda is maximizing risk-adjusted returns for the funds our clients choose to invest in.”
BlackRock, headed up by CEO Larry Fink, has walked back from some of its climate commitments, but has still faced calls to fully abandon ESG policies. 
“Larry Fink and BlackRock continue to pretend that the only time they engage in ESG, it is with permission of the shareholders, but in reality, ESG policies have seeped into every facet of BlackRock&#8217;s asset management,” Will Hild of Consumers&#8217; Research said in a <a href="https://www.foxbusiness.com/politics/mississippi-hits-blackrock-with-cease-desist-threatens-massive-fine-over-esg-policies">statement</a> to FOX Business on Wednesday. “They&#8217;ve been lying to their customers, and states like Mississippi are not going to allow this to continue.”

Blackrock Posts 22 Percent Increase In Quarterly Profits

Mississippi May Issue BlackRock ‘Multimillion-Dollar’ Fine Over ESG Investing Policies

Investors

Mississippi

The <a href="https://www.dailywire.com/topic/texas" target="_blank" rel="noopener">Texas</a> Permanent School Fund (PSF) opted on Tuesday to terminate an $8.5 billion investment with <a href="https://www.dailywire.com/topic/blackrock" target="_blank" rel="noopener">BlackRock</a> Inc., with one official citing the financial asset manager&#8217;s support of environmental, social, and governance (ESG) proposals.
State Board of Education Chairman Aaron Kinsey said in a <a href="https://twitter.com/AaronKinseyTX/status/1770090460935020835" target="_blank" rel="noopener">statement</a> that PSF&#8217;s &#8220;relationship with BlackRock was not in compliance&#8221; with <a href="https://www.texastribune.org/2021/05/03/texas-house-fossil-fuel-oil-divest/" target="_blank" rel="noopener">legislation</a> enacted in <a href="https://capitol.texas.gov/BillLookup/history.aspx?LegSess=87R&amp;Bill=SB13" target="_blank" rel="noopener">2021</a> that &#8220;prohibits state investment in companies like BlackRock that boycott energy companies.&#8221;
PSF &#8220;has a fiduciary duty to protect Texas schools by safeguarding and growing the approximately $1 billion in annual oil and gas royalties managed by the Texas General Land Office,&#8221; Kinsey said, adding that terminating BlackRock&#8217;s contract &#8220;ensures PSF’s full compliance with Texas law.&#8221;
BlackRock, which boasts trillions of dollars in assets, endured <a href="https://www.atr.org/esgradar/" target="_blank" rel="noopener">divestments</a> by other GOP-led states amid objections over its <a href="https://www.blackrock.com/corporate/literature/fact-sheet/blk-responsible-investment-engprinciples-global-summary.pdf" target="_blank" rel="noopener">push for ESG</a> that critics view as being part of a <a href="https://www.cnn.com/2024/03/17/politics/dark-money-fga-ashcroft-invs/index.html" target="_blank" rel="noopener">&#8220;woke&#8221; agenda</a>. But the company has <a href="https://www.axios.com/2023/08/23/esg-blackrock-shareholders" target="_blank" rel="noopener">pared back support</a> for ESG proposals while <a href="https://www.dailywire.com/news/blackrock-admits-its-bottom-line-could-be-hurt-by-esg-investing" target="_blank" rel="noopener">acknowledging</a> such investments could hurt its bottom line.
In a <a href="https://twitter.com/bradj_TX/status/1770120206750204008" target="_blank" rel="noopener">statement</a>, BlackRock said it is &#8220;helping millions of Texans invest and save for retirement.&#8221; It added, &#8220;On behalf of our clients, we&#8217;ve invested more than $300 billion in Texas-based companies, infrastructure and municipalities, including $125 billion invested in the energy sector, including a $550 million joint venture with Occidental. We recently hosted an energy summit in Houston designed to explore how to strengthen Texas’ power grid.&#8221;
A <a href="https://twitter.com/bradj_TX/status/1770120202614620344" target="_blank" rel="noopener">letter</a> that PSF sent to BlackRock, a copy of which was <a href="https://twitter.com/bradj_TX/status/1770120202614620344" target="_blank" rel="noopener">posted to X</a> by a reporter with The Texan, said the termination of the contract was effective on April 30 and noted requests for the company to &#8220;cooperate&#8221; in transitioning assets to a successor manager and work in &#8220;good faith&#8221; to determine and execute &#8220;the most efficient and cost-effective transition plan for the assets.&#8221;
<a href="https://onelink.to/dwapp" target="_blank" rel="noopener noreferrer" aria-describedby="sk-tooltip-9096" data-saferedirecturl="https://www.google.com/url?q=https://onelink.to/dwapp&amp;source=gmail&amp;ust=1700760801843000&amp;usg=AOvVaw2PQrVSrJfhxNb4LcARqniG">CLICK HERE TO GET THE DAILYWIRE+ APP</a>
Kinsey said BlackRock’s &#8220;dominant and persistent leadership in the ESG movement immeasurably damages our state’s oil &amp; gas economy and the very companies that generate revenues for our PSF. Texas and the PSF have worked hard to grow this fund to build Texas’ schools. BlackRock’s destructive approach toward the energy companies that this state and our world depend on is incompatible with our fiduciary duty to Texans.&#8221;
He added, &#8220;Today represents a major step forward for the Texas PSF and our state as a whole. The PSF will not stand idle as our financial future is attacked by Wall Street. This bold action helps ensure our PSF remains in fact permanent and will continue to support bright futures and opportunities for generations of Texas students.&#8221;

Larry Fink

Texas Schools Fund Moves To Pull $8.5 Billion Contract With BlackRock

Texas Schools Fund Moves To Pull Out Of $8.5 Billion BlackRock Contract

Education

finance

Financial asset manager <a href="https://www.dailywire.com/topic/blackrock" target="_blank" rel="noopener">BlackRock</a> said in its annual report that environmental, social, and governance policies could hurt its bottom line after Republican state officials cut ties with the company over its ties to China and climate activism. 
In its annual Form 10-K <a href="https://www.sec.gov/Archives/edgar/data/1364742/000095017024019271/blk-20231231.htm#item_1a_risk_factors" target="_blank" rel="noopener">SEC filing</a> put out last week, BlackRock said that it was facing ESG-related risk factors that might cause it to lose revenue and damage its earnings. The financial giant, which has over $10 trillion in assets, has faced scrutiny from Republican officials who say the company misleads its customers about leftist policies. 
“If BlackRock is not able to successfully manage ESG-related expectations across varied stakeholder interests, it may adversely affect BlackRock’s reputation, ability to attract and retain clients, employees, shareholders and business partners or result in litigation, legal or governmental action, which may cause its AUM, revenue and earnings to decline,” the company wrote in its filing. 
The company said that this was due to having “clients who have a variety of goals and preferences, including those who want to increase their exposure to the low-carbon transition and those who choose not to invest in products or strategies with sustainable investment objectives.”
BlackRock said that there was risk because some of its clients wanted it to become more involved in promoting ESG investing, while others have cut off business because of its policies toward coal and natural gas. 
“Some US states and state officials have adopted or proposed legislation or otherwise have taken official positions restricting or prohibiting state government entities from doing certain business with entities identified by the state as ‘boycotting’ or ‘discriminating’ against particular industries or considering ESG factors in their investment processes and proxy voting,” the filing said. “Other states and localities may adopt similar legislation or other ESG-related laws and positions that adversely impact BlackRock’s business.”
The filing was cheered on by conservatives who said that it was only the beginning of pushback on ESG initiatives.
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
This is enormous. The blowback to the ESG tyranny is only beginning. <a href="https://t.co/ZjSiSwrr43">https://t.co/ZjSiSwrr43</a>
&mdash; Ben Shapiro (@benshapiro) <a href="https://twitter.com/benshapiro/status/1763602148514799698?ref_src=twsrc%5Etfw">March 1, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
&#8220;The hustlers &amp; radicals pushing ESG on American investors &amp; retirees are finally being exposed. But the battle is far from over because they are going to change tactics &amp; try to fly under the radar. Our policy responses will need to evolve,&#8221; Sen. Marco Rubio (R-FL) <a href="https://twitter.com/SenMarcoRubio/status/1763633618390294896" target="_blank" rel="noopener">said</a>.
<a href="https://onelink.to/dwapp" target="_blank" rel="noopener noreferrer" aria-describedby="sk-tooltip-9096" data-saferedirecturl="https://www.google.com/url?q=https://onelink.to/dwapp&amp;source=gmail&amp;ust=1687352286746000&amp;usg=AOvVaw2XxW0VTdKx-2nQAhkiTR8M">CLICK HERE TO GET THE DAILYWIRE+ APP</a>
In recent years, a number of states, including Louisiana and West Virginia, have divested from BlackRock. As opposition grew, the company has backtracked on some of its policies, <a href="https://www.dailywire.com/news/financial-giants-pull-14-trillion-from-climate-group-that-pressures-companies-to-take-action-on-climate-change" target="_blank" rel="noopener">most recently</a> pulling out of Climate Action 100+, a group that pressures companies to “take action on climate change.” BlackRock International, a subsidiary, remained in the group.
Republican officials have also maintained pressure on the company, and 15 Republican attorneys general, led by Montana Attorney General Austin Knudsen, <a href="https://dw-wp-production.imgix.net/2024/02/Follow_up_letter_to_BlackRock_Directors_FINAL.pdf">demanded</a> more answers from BlackRock about its participation in climate organizations and what kind of environmental, social, and governance policies it has implemented.

BlackRock offices in New York City. Founded in 1988,

BlackRock Admits Its Bottom Line Could Be Hurt By ESG Investing

China

Marco Rubio

Republican officials continued their probe of <a href="https://www.dailywire.com/topic/blackrock" target="_blank" rel="noopener">BlackRock</a> this week, saying that the financial giant has not been forthcoming about how climate activists are shaping its policies, according to a letter first obtained by The Daily Wire.
In a <a href="https://dw-wp-production.imgix.net/2024/02/Follow_up_letter_to_BlackRock_Directors_FINAL.pdf" target="_blank" rel="noopener">letter</a> to BlackRock on Tuesday, 15 Republican attorneys general led by Montana Attorney General Austin Knudsen, demanded more answers from BlackRock about its participation in climate organizations and what kind of environmental, social, and governance policies it has implemented. BlackRock, which has over $10 trillion in assets, has faced scrutiny from Republicans over accusations that it prioritizes leftist activism over customer benefit.
“I have serious concerns about BlackRock’s Environmental, Social, and Governance investments, their conflicting statements regarding ESG, and the potential conflicts of interest with independent fund directors,” Knudsen told The Daily Wire. “Mutual fund directors have a fiduciary obligation to their clients to make them as much money as possible, but BlackRock appears to be more concerned with pushing the woke, liberal agenda.”
The 18-page letter raises concerns about conflicting statements made by BlackRock on ESG, BlackRock’s participation in leftist climate groups, and conflicts of interests.
BlackRock recently <a href="https://www.dailywire.com/news/financial-giants-pull-14-trillion-from-climate-group-that-pressures-companies-to-take-action-on-climate-change" target="_blank" rel="noopener">stepped away</a> from the Climate Action 100+ organization, but remains in other groups like the Net Zero Asset Managers initiative, the United Nations Principles for Responsible Investment, and Ceres. BlackRock International, a subsidiary, is still part of the Climate Action organization.
Knudson told The Daily Wire that while BlackRock “took a step in the right direction by dropping out Climate Action 100+ earlier this month, it’s not enough.”
“BlackRock has made commitments to environmental activist groups that may conflict with the fiduciary duties it owes to clients, and we seek more information about how the independent directors have overseen this,” the letter says. “Further, BlackRock’s relationships with certain large institutional clients, especially state pension funds, may unduly influence BlackRock’s overall approach to engaging with companies in which it invests, including investments that have disclaimed any reliance or focus on ESG factors.”
The Republicans AGs also say that BlackRock has made misleading statements about the motivations behind its ESG policies. Some comments from BlackRock indicate that it believes that ESG policies provide financial benefit are undercut by other statements that sustainability criteria don’t help assess the potential risk or reward of a fund, the letter notes.
“BlackRock’s claims that its focus on climate and ESG is motivated by concern about financial return are also undermined by the performance of its ESG-managed funds, which lag behind the performance of non-ESG benchmarks while charging higher fees,” the letter said.
Additionally, the letter raises concerns about the independence of mutual fund directors at BlackRock and whether they can be directors on other corporations where BlackRock controls significant shares.
“From a conflict-of-interest perspective, there is a clear risk that service on a public company board creates a dynamic where the director will be hesitant to offend or anger BlackRock, when BlackRock manages, votes, and controls significant shares in that public company,” the letter says.
<a href="https://onelink.to/dwapp" target="_blank" rel="noopener noreferrer" aria-describedby="sk-tooltip-9096" data-saferedirecturl="https://www.google.com/url?q=https://onelink.to/dwapp&amp;source=gmail&amp;ust=1700760801843000&amp;usg=AOvVaw2PQrVSrJfhxNb4LcARqniG">CLICK HERE TO GET THE DAILYWIRE+ APP</a>
In addition to Montana, Alabama, Arkansas, Georgia, Indiana, Iowa, Louisiana, Mississippi, Missouri, Nebraska, South Carolina, South Dakota, Texas, Virginia, West Virginia, and Utah all signed on to the letter.
&#8220;Thanks to persistent efforts from Republican attorneys general to defeat the radical and illegal ESG movement, BlackRock and other investment firms have rightly withdrawn from certain environmental organizations committed to a foundational transformation of America&#8217;s energy and financial sectors,&#8221; Utah AG Sean Reyes told The Daily Wire. &#8220;Our coalition, however, still has concerns with BlackRock&#8217;s past and present actions involving the financial interests of our constituents. We will remain steadfast in holding BlackRock and others like it accountable by protecting the financial freedom of our people.&#8221;
The Republicans previously wrote to BlackRock in July voicing many of the same concerns and received a reply in August. They said that August&#8217;s reply did not sufficiently answer their questions or concerns about ESG investing. Tennessee <a href="https://www.dailywire.com/news/tennessee-attorney-general-sues-blackrock-for-misleading-investors-about-esg-agenda" target="_blank" rel="noopener">sued</a> BlackRock in December, saying that firm violated consumer protection laws by misleading consumers about its attempt to pursue left-wing social and environmental goals.

EXCLUSIVE: Republican Officials Demand Answers On BlackRock’s ‘Woke’ Climate Agenda

Business

Environmentalists

Montana

Financial giants JPMorgan and State Street announced this week that they were leaving the Climate Action 100+ organization, an investors group that pushes ESG initiatives and controls about $68 trillion in assets. 
Black Rock, the world’s largest asset manager, also announced that it would be pulling some investment away from Climate Action, <a href="https://www.nytimes.com/2024/02/16/business/dealbook/wall-streets-climate-retreat.html" target="_blank" rel="noopener">meaning</a> that the total investment value lost by the group is around $14 trillion. The moves were praised by Republicans, who have said that companies engaging in ESG initiatives harm the economy and use customers&#8217; money for political purposes. 
State Street said Climate Action 100+ requirements were no longer in line with company policy. “SSGA has concluded the enhanced Climate Action 100+ phase 2 requirements for signatories are not consistent with our independent approach to proxy voting and portfolio company engagement,” State Street <a href="https://www.ft.com/content/3ce06a6f-f0e3-4f70-a078-82a6c265ddc2" target="_blank" rel="noopener">told</a> The Financial Times. 
JPMorgan said that it was making the move because it doesn’t have to rely on Climate Action 100+ anymore. “Given these strengths and the evolution of its own stewardship capabilities, JPMAM has determined that it will no longer participate in Climate Action 100+ engagements,&#8221; the group said.
Climate Action, formed in 2017, <a href="https://www.climateaction100.org/approach/business-case/" target="_blank" rel="noopener">says</a> that it has over 700 investors who engage  “companies on improving climate change governance, cutting emissions and strengthening climate-related financial disclosure” and pushing the world’s biggest companies “take necessary action on climate change.”
House Judiciary Chair Jim Jordan praised the news and urged Black Rock to disengage from Climate Action. &#8220;Today’s decisions by JPMorgan and State Street are big wins for freedom and the American economy, and we hope more financial institutions follow suit in abandoning collusive ESG actions.&#8221;
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
Today’s decisions by JPMorgan and State Street are big wins for freedom and the American economy, and we hope more financial institutions follow suit in abandoning collusive ESG actions. <a href="https://t.co/PT3LlDjMSa">https://t.co/PT3LlDjMSa</a>
&mdash; Rep. Jim Jordan (@Jim_Jordan) <a href="https://twitter.com/Jim_Jordan/status/1758156354538131807?ref_src=twsrc%5Etfw">February 15, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
West Virginia State Treasurer Riley Moore, a frequent critic of ESG policies, also <a href="https://www.wvtreasury.com/About-The-Office/Press-Releases/ID/594/Treasurer-Moore-Commends-State-Street-JPMorgan-for-Withdrawing-from-International-Climate-Group" target="_blank" rel="noopener">praised</a> the decision from JPMorgan and State Street. Moore previously cut ties with Black Rock over their policies toward coal and natural gas. 
<a href="https://onelink.to/dwapp" target="_blank" rel="noopener noreferrer" aria-describedby="sk-tooltip-9096" data-saferedirecturl="https://www.google.com/url?q=https://onelink.to/dwapp&amp;source=gmail&amp;ust=1700760801843000&amp;usg=AOvVaw2PQrVSrJfhxNb4LcARqniG">CLICK HERE TO GET THE DAILYWIRE+ APP</a>
“This is a step in the right direction and significant victory in our states’ fight against the international corporate collusion targeting the coal, oil and natural gas industries,” Treasurer Moore said. “West Virginia and our coalition of states have been fighting for years against these efforts to boycott and curtail capital to our critical energy industries and diminish important economic activity and revenue for our states. This is a sign our efforts are making an impact.”
A coalition of Republican attorneys general <a href="https://ago.wv.gov/Documents/2023-03-30%20Asset%20Manager%20letter%20Press%20FINAL.pdf" target="_blank" rel="noopener">previously wrote</a> to financial asset managers about their involvement with Climate Action warning them about using American’s savings to “push political goals.”

Climate Activists Mark 10 Years Since Hurricane Sandy In New York

Financial Giants Pull $14 Trillion From Climate Group That Pressures Companies To Take ‘Action On Climate Change’

Tennessee Attorney General Jonathan Skrmetti <a href="https://www.tn.gov/attorneygeneral/news/2023/12/18/pr23-59.html">filed a lawsuit</a> on Monday against BlackRock, the world’s largest asset manager, alleging that the firm violated consumer protection laws by misleading consumers about its attempt to pursue leftwing social and environmental goals.
The lawsuit hones in on BlackRock’s Environmental, Social, and Governance (ESG) initiatives, alleging that consumers were deprived of the ability to accurately assess the financial giant’s objectives.
“We allege that BlackRock’s inconsistent statements about its investment strategies deprived consumers of the ability to make an informed choice,” Skrmetti said. “I want to make certain that corporations, no matter their size, treat Tennessee consumers fairly and honestly.”
Tennessee&#8217;s lawsuit comes as numerous Republican-led states have <a href="https://www.dailywire.com/news/states-have-pulled-nearly-12-billion-from-blackrock-this-year">divested</a> from BlackRock, citing concerns with the asset management firm’s fixation on ESG. Skrmetti <a href="https://www.chattanoogan.com/2023/4/10/467148/Attorney-General-Skrmetti-Joins.aspx">joined a coalition</a> of 20 other state AGs who warned BlackRock, among other asset managers, of the potential conflicts between its fiduciary duties and political agenda earlier this year.
The new lawsuit contends that the asset manager misled consumers “about the scope and effects of its widespread ESG activity,” and points to an interview with BlackRock CEO Larry Fink in which he said, “Everything we do is on behalf of our clients, and everything we do is with the purpose of financial returns.”
“There is not one thing we have ever done, whether it’s ESG or any other issue, is … in the pursuit of financial return. That is our fiduciary responsibility, and we live that every day,” Find said
But while Fink assured customers that BlackRock was upholding its fiduciary duty, the suit points out that the colossal asset management firm, which controls over $9 trillion in assets, is a part of environmentally-focused coalitions that affect clients’ assets. It specifically names two ESG coalitions that BlackRock joined, the Net Zero Asset Managers Initiative and Climate Action 100+, and asserts that membership in both organizations is <a href="https://perma.cc/7MAX-HUAT">contingent</a> on “lobbying, engagement, voting on shareholder proposals, and managing assets with the goal of achieving ‘net zero’ by 2050.”
The lawsuit clarifies that “BlackRock’s continued membership necessitates BlackRock’s commitment to pushing aggressive carbon-reduction strategies across all assets under management” and that, rather than risk negative publicity by exiting these organizations, the firm is instead “deceiving consumers about the company’s extensive commitment to fulfilling ESG aims.”
The suit goes on to directly allege that BlackRock “has falsely conveyed that certain of its funds do not incorporate ESG considerations.” It specifies that, while BlackRock states that its non-ESG funds aren’t intended to “follow a sustainable, impact, or ESG investment strategy,” the company agreed to a “stewardship and engagement strategy, with a clear escalation and voting policy, that is consistent with  [the] ambition for all assets under management to achieve net zero emissions” by virtue of its membership with the Net Zero Asset Managers Initiative.
“BlackRock’s disclosures do not mention such promises” Skrmetti’s office notes before asserting “Tennessee consumers deserve to know which of BlackRock’s statements are a true account of the company’s decision-making.” His office also specified that the lawsuit seeks “injunctive relief, civil penalties, and recoupment of the State’s costs.”

BlackRock logo

Tennessee Attorney General Sues BlackRock For Misleading Investors About ESG Agenda

Menu