Louisiana Treasurer John M. Schroder Has Indicted that $794M will be Divested from BlackRock to Protect Funds from ESG
Louisiana Treasurer John M. Schroder Has Indicted that $794M will be Divested From BlackRock to Protect Funds from ESG
Louisiana – Louisiana State Treasurer John M. Schroder said on October 5, 2022, in a letter to BlackRock, Inc. CEO Larry Fink, that he will remove all Treasury funds from BlackRock. He indicated that $560 million has been removed to date, with a total of $794 million to be removed by the end of the year.
“This divestment is necessary to protect Louisiana from mandates BlackRock has called for that would cripple our critical energy sector,” said Schroder, who serves as incoming chair of the national State Financial Officers Foundation. “I refuse to spend a penny of Treasury funds with a company that will take food off tables, money out of pockets, and jobs away from hardworking Louisianans.”
Schroder stated that his decision is in response to recent revelations that BlackRock has advised corporations to pursue “net zero” ESG (Environmental, Social, and Governance) investing methods that will hurt our state’s crucial fossil fuel industry. His letter follows a meeting with BlackRock representatives, whose views, he claims, directly contradict Fink’s public messaging, including shareholder letters and other BlackRock corporate communications materials.
Schroder cites an overall fiduciary duty to investors that BlackRock fails to meet in the letter. “ESG investing violates Louisiana law on the fiduciary duties which require a sole focus on financial returns for the beneficiaries of state funds,” he wrote. “A focus on political or social goals or placing those goals above the duty to enhance investors’ returns is unacceptable under Louisiana law.”
Schroder stated that BlackRock continues to invest in oil and gas firms. However, he determined that it does not counterbalance the investment firm’s declared desire to push those companies—and all others—to adopt ESG-friendly practices, regardless of whether they were in the best interests of their clients.
Treasurer Schroder continued by asserting that ESG investing is a threat to our country’s basic ideals because it allows businesses like BlackRock to bypass the democratic process and push political agendas without having to go via the vote box.
“They are pushing their agendas contrary to the best interests of the people whose money they are using!” said Schroder. “This is a complete disregard for personal liberty.”
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