ESG (environment, social, and governance) investing is once again on the GOP’s radar as yet another state treasurer pushes back against a financial firm many climate activists believe isn’t doing enough to reach its net-zero goals and be a more ethical investor. On Wednesday, Louisiana State Treasurer John Schroeder sent a letter to BlackRock CEO Larry Fink criticizing the firm’s “blatantly anti-fossil fuel policies” and announcing that the state would fully divest from BlackRock by the end of the year.
That adds up to Louisiana pulling a total of $794 million worth of investments, with the state having already liquidated $560 million. “They are pushing their agendas contrary to the best interests of the people whose money they are using!” Schroder fumed in a press release. “This is a complete disregard for personal liberty.” Schroder’s move follows similar attacks from Republicans across the country, including Texas Comptroller Glenn Hegar and West Virginia Treasurer Riley Moore.
Fink, who typically writes an annual shareholder letter, previously pushed back against criticisms of ESG investment strategies, assuring investors that capitalism is never “woke” nor is access to capital “a right.” For companies like BlackRock, it truly comes down to the bottom line, hence their slow walking of more climate-forward investment strategies. That’s not good enough for Republicans like Schroder, who erroneously claimed that BlackRock’s actions amount to policies that would “take food off tables, money out of pockets and jobs away from hardworking Louisianans.”
Even the American Petroleum Institute admits the fossil fuel industry boosts just 12.6% of jobs in Louisiana. It’s no secret that oil and gas jobs are lagging compared with the opportunities in clean energy. Louisiana Bucket Brigade Southwest Louisiana coordinator James Hiatt further pushed back against Schroder’s claims, calling his politicizing of ESG measures “a sad state of affairs.”
“The political backlash over BlackRock including the community and environmental impacts in its investment decisions demonstrate just how deep the polluter industry's hooks are—and who these politicians really work for. ESG won't destroy Louisiana's economy; politicians delaying economic diversification and the rising seas will,” Hiatt said.
That adds up to Louisiana pulling a total of $794 million worth of investments, with the state having already liquidated $560 million. “They are pushing their agendas contrary to the best interests of the people whose money they are using!” Schroder fumed in a press release. “This is a complete disregard for personal liberty.” Schroder’s move follows similar attacks from Republicans across the country, including Texas Comptroller Glenn Hegar and West Virginia Treasurer Riley Moore.
Fink, who typically writes an annual shareholder letter, previously pushed back against criticisms of ESG investment strategies, assuring investors that capitalism is never “woke” nor is access to capital “a right.” For companies like BlackRock, it truly comes down to the bottom line, hence their slow walking of more climate-forward investment strategies. That’s not good enough for Republicans like Schroder, who erroneously claimed that BlackRock’s actions amount to policies that would “take food off tables, money out of pockets and jobs away from hardworking Louisianans.”
Even the American Petroleum Institute admits the fossil fuel industry boosts just 12.6% of jobs in Louisiana. It’s no secret that oil and gas jobs are lagging compared with the opportunities in clean energy. Louisiana Bucket Brigade Southwest Louisiana coordinator James Hiatt further pushed back against Schroder’s claims, calling his politicizing of ESG measures “a sad state of affairs.”
“The political backlash over BlackRock including the community and environmental impacts in its investment decisions demonstrate just how deep the polluter industry's hooks are—and who these politicians really work for. ESG won't destroy Louisiana's economy; politicians delaying economic diversification and the rising seas will,” Hiatt said.