Sign In  |  Register  |  About Livermore  |  Contact Us

Livermore, CA
September 01, 2020 1:25pm
7-Day Forecast | Traffic
  • Search Hotels in Livermore

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

BlackRock's Larry Fink on why he won't mention ESG anymore: 'It's been weaponized by left and right'

BlackRock asset management CEO Larry Fink sounded off on 'The Claman Countdown,' saying he will no longer use the term ESG due to its hyper-politicization.

BlackRock CEO Larry Fink spoke to FOX Business about the state of the economy, his company's attempt to start a Bitcoin spot trust, and why he believes the term ESG – Environmental, Social [corporate] Governance – has become toxic.

Fink told "The Claman Countdown," Wednesday, that the economy has been injected with what will amount to $1 trillion in stimulus, and is very strong, especially given its outlook.

"Think about how many jobs it takes to rebuild airports and freeways and ports. The job demand from these [federal legislative] acts is going to be enormous… [O]wning companies that are involved in the rebuilding of our infrastructure are going to be good long-term holds," he told host Liz Claman.

Claman asked whether some of his rosy outlook has to do with his past support for ESG principles, which have been criticized by some experts as a 21st Century version of mercantilism.

FINK PREDICTS TOTAL NUMBER OF FED RATE INCREASES

When asked by FOX Business' Charlie Gasparino if the term "ESG" is safe to utter, Fink remarked, "I don't say [it] anymore."

Fink went on to say many BlackRock investments include what he called interests involved in "traditional" energy and power, adding that it is important to balance both those and renewable sources in BlackRock's portfolio.

He pointed to Texas as an example of how both can work together, saying the Lone Star State leads the nation in both renewable and fossil fuel energy production.

"We're going to be announcing a big transaction with a traditional energy company that's heavily into gas, and we're helping them move towards more sequestration. And so our job is to be working on behalf of the asset owners." Fink said.

"[N]one of the money is ours. We're working with all the asset owners and trying to help them on long-term solutions. And part of the long-term solution is working on decarbonization. And hopefully, we could develop new technology to bring down the cost even more."

WARREN BUFFETT ON BANKING CRISIS: ‘NOBODY IS GOING TO LOSE MONEY ON A DEPOSIT IN A US BANK’

Despite criticisms, Fink said BlackRock invests $380 billion globally in fossil fuel concerns, while also investing in renewables favored by the political progressives.

He said that fact has led BlackRock to take incoming fire from both political wings.

In February, Texas State Comptroller Glenn Hegar reportedly "strongly" urged five government employee pension funds to cut ties with "divestment list" companies – including BlackRock and UBS -- that are seen as unfriendly to oil and gas, according to Bloomberg News.

Fink separately commented on blowback from the left, particularly New York City Comptroller Brad Lander, who sent a letter to the corporate executive earlier this year warning his investment actions don't align with climate commitments.

Lander's office said in a February press release that BlackRock is the largest manager of the city teachers, employees and board of education retirement systems, and that its current status does not align with a "net-zero" portfolio goal for 2040.

NEWT GINGRICH BLASTS PENNSYLVANIA DEMOCRATS' ENTRY INTO RGGI GREEN ENERGY INITIATIVE

"If we do not find a way to dramatically reduce carbon emissions in alignment with the Paris Agreement, the harm will not only be measured in lives lost and people displaced; it will also be measured in trillions of dollars lost in our collective portfolios," wrote Lander, a former city councilman from Park Slope, Brooklyn.

Gasparino said the attacks on Fink are "absurd," pointing to Texas' and Lander's criticisms specifically.

CLICK TO GET THE FOX NEWS APP

On FOX Business,, Fink said ESG as a term has been "weaponized by the far left and weaponized by the far right. And we lose the conversation."

"Our clients are coming to BlackRock more today than ever in history," Fink added. "So despite all the narrative, because we're a fiduciary, we do what our clients are asking them, and we have good performance, and we've been right on market calls."

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 Livermore.com & California Media Partners, LLC. All rights reserved.