BlackRock throws support behind effort to move pensions beyond ESG

finance
Created 6/29/2024
Updated 6/29/2024

BlackRock is backing a coalition of US police and firefighter labor groups called the Alliance for Prosperity and a Secure Retirement, aiming to keep politics out of pension investments. This move comes as BlackRock faces criticism for its stance on environmental, social, and governance (ESG) investing. BlackRock's support for the alliance is part of its effort to navigate the backlash against environmental, social, and governance (ESG) investing, which has been criticized by some as "woke capitalism." The Alliance emphasizes letting investment professionals manage funds without political interference. In 2023, forty-four state legislatures considered 162 bills, with 76 more proposals this year; about 80% sought to ban sustainability factors in investments. Despite past advocacy for sustainable investing, BlackRock has shifted focus to prioritize investor choice and pensions. This group, backed mostly by public safety unions, seeks broader industry support to protect pension funds from political agendas.

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