BlackRock CEO Larry Fink has hit back at claims made by candidates at the recent Republican debate, refuting accusations that the investment giant is pushing an ideological agenda and hindering energy companies from producing oil. In a LinkedIn post following the debate, Fink criticized the candidates for spreading misinformation about BlackRock, stating that some of them “earned a few more Pinocchios.” The firm, along with Fink himself, was repeatedly mentioned during the debate, particularly by candidate Vivek Ramaswamy, who referred to Fink as “the king of the woke industrial complex, the ESG movement.”
BlackRock has faced significant pressure in recent months, as Republican politicians in the U.S. have launched a vocal anti-ESG movement against the firm. They have accused BlackRock of following a social agenda and working to harm energy companies. However, Fink addressed these claims earlier this year, emphasizing that BlackRock is actually one of the world’s largest investors in hydrocarbons. He also highlighted the firm’s active collaboration with major energy companies on their decarbonization efforts.
In his response to Ramaswamy’s allegations, Fink reiterated these points, noting that BlackRock clients have more than $170 billion invested in American energy companies. He also highlighted the firm’s recent joint venture with a major energy company to develop new technology. Fink’s aim was to dispel the notion that BlackRock is boycotting or harming energy companies.
Florida governor Ron DeSantis also brought up BlackRock during the debate, as he sought to strengthen his anti-ESG stance. DeSantis accused the firm of being part of a group of “woke corporations” that want to impose a left-wing agenda on the country using economic power. He has been a vocal advocate against ESG, barring fund managers for state pension funds from incorporating ESG factors in their investment process last year and recently withdrawing $2 billion from BlackRock due to its use of ESG factors.
Fink responded to DeSantis’ claims by asserting that BlackRock’s only agenda is delivering for its clients. He expressed disappointment that BlackRock was mentioned more during the debate than issues such as inflation or the national debt, calling it a sad commentary on the state of American politics.
The back-and-forth between BlackRock and Republican politicians highlights the growing polarization around ESG issues in the financial industry. While some politicians accuse BlackRock of following an ideological agenda, the firm maintains that its primary focus is on serving its clients. The debate serves as a reminder of the increasing scrutiny and skepticism surrounding ESG investing, particularly within the Republican party.
As the 2022 midterm elections approach and the race for the presidency heats up, it is likely that the discussion around ESG and the role of corporations in shaping societal agendas will continue to dominate the political landscape. Both BlackRock and its critics will need to navigate this contentious issue, while investors and the public will closely watch how the debate unfolds and its potential impact on the financial industry.
