Critics say ‘time will tell’ if it’s a real policy change or a rebranding of the same agenda
BlackRock CEO Larry Fink, one of the most powerful figures on Wall Street and an outspoken champion of progressive causes, appeared to be backpedaling this week on his support for the environmental, social, and governance (ESG) movement, saying he would no longer use the term.
“I’m not going to use the word ESG because it’s been misused by the far left and the far right,” Fink told attendees of the Aspen Ideas Festival on June 25, adding that he was “ashamed of being part of this conversation.” He also decried “personal attacks” that have come in response to some of the positions he has taken.
But many who have led the charge against ESG investing say they are waiting to see whether this indicates that BlackRock, the world’s largest asset manager with more than $8 trillion in funds under management, has changed its ways or is simply attempting to re-brand the same policies.
“I think he’s caught some heat from some folks,” Florida’s Chief Financial Officer Jimmy Patronis told The Epoch Times. “Maybe he’s needed to try to find some way to camouflage his messaging because there’s definitely been some criticism.”
“I am encouraged by the change in rhetoric; however, BlackRock’s actions over time will be more telling,” Utah State Treasurer Marlo Oaks told The Epoch Times. “We are watching BlackRock’s corporate engagement and how they are voting their proxies.”
The Power of Proxy Voting
Proxy voting refers to how BlackRock votes the corporate shares that it manages for others. Currently, about three-quarters of all shares in U.S. publicly traded companies are held by institutional fund managers in the form of index funds, mutual funds, and pension funds, and not by individual investors.
This gives fund managers like BlackRock, Vanguard, and State Street, the so-called “big three,” tremendous power and influence over companies. Because of the popularity of its index funds, for example, Vanguard is the largest shareholder in 330 of the companies in the S&P500 index.
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