BlackRock (BLK) is quitting a trade group for asset managers taking on climate and environmental initiatives amid criticism from politicians in energy-producer states they are unfairly steering investment funds away from coal and petroleum companies as part of their efforts to reduce greenhouse gas emissions, according to multiple media reports.
In a letter to clients obtained by several media outlets including Bloomberg and Reuters, BlackRock said it was leaving the Net-Zero Asset Managers initiative because its membership resulted in "confusion regarding BlackRock's practices and subjected us to legal inquiries from various public officials."
Republican lawmakers have been increasingly vocal in their opposition to so-called net-zero efforts, which want to cut greenhouse-gas emissions by businesses and other entities to 0% on a net basis by 2050. The US House Judiciary Committee, for example, last month issued a report criticizing environmental, social and governance initiatives as a "woke cartel."
Bank of America (BAC), Citigroup (C), Goldman Sachs (GS), JPMorgan Chase (JPM), Morgan Stanley (MS) and Wells Fargo (WFC) all have left a similar organization for bank companies in recent weeks.
BlackRock declined to comment to MT Newswires.
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