BlackRock holds $85 billion in coal investments despite Larry Fink’s focus on climate change, report shows


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At least $85 billion of assets managed by BlackRock are invested in coal companies, according to a new report, a year after the world’s largest asset manager pledged to dramatically reduce its exposure to polluters.

BlackRock’s policies mean it can still invest in firms that make less than 25% of their revenues from coal, such as Glencore, and its indexing products leave it with heavy exposure to the industry, campaign groups Reclaim Finance and Urgewald said in a report published on Wednesday.

It comes a year after Fink said BlackRock would take a range of measures to position the company to help tackle climate change and to benefit from the low-carbon transition. They included “exiting investments that present a high sustainability-related risk, such as thermal coal producers”.

Yet Lara Cuvelier, sustainable investment campaigner at Reclaim Finance, today accused BlackRock of “greenwashing”. Cuvelier called on the world’s biggest asset manager, which manages around $8 trillion in assets, to do more.

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“It’s hard to see Larry Fink’s sustainability commitment as anything other than greenwashing,” Cuvelier said.

“If he really wants BlackRock to be a climate leader instead of a climate pariah, he needs to start aligning green words with green deeds, and direct BlackRock’s awesome financial power towards a sustainable future. After the hottest year on record, the bare minimum for BlackRock is to get out of coal once and for all.”

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BlackRock argues that it has already taken major steps, such as divesting fully from firms that make 25% or more of their revenues from thermal coal.

It also stresses that it …read more

Source:: Business Insider

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