Louisiana Treasurer John Schroder sent a letter to BlackRock CEO Larry Fink explaining that Louisiana is withdrawing its funds from Blackrock.
The reasoning was BlackRock’s support for “blatantly anti-fossil fuel policies” that “would destroy Louisiana’s economy” according to the letter.
BlackRock has promoted ESG standards which includes using publicly traded funds to incentivize a transition from fossil fuels to clean energy alternatives.
Louisiana informed mega bank BlackRock on Wednesday that it will divest from the firm’s investment portfolio over its anti-fossil fuel policies.
“Your blatantly anti-fossil fuel policies would destroy Louisiana’s economy,” Schroder wrote to Fink in the letter first obtained by FOX Business.
“This divestment is necessary to protect Louisiana from actions and policies that would actively seek to hamstring our fossil fuel sector. In my opinion, your support of ESG investing is inconsistent with the best economic interests and values of Louisiana,” he continued. “I cannot support an institution that would deny our state the benefit of one of its most robust assets.”
Louisiana is pulling $794 million out of BlackRock’s funds – the state has already withdrawn $560 million.
Louisiana will pull $794 million out of BlackRock Inc’s funds, state Treasurer John Schroder said on Wednesday, citing the asset management giant’s push to embrace environmental, social and governance (ESG) investment strategies.
The U.S. state has already withdrawn $560 million from the funds to date, he said.
This is the largest divestment from BlackRock by any state.
— Will Hild (@WillHild) October 5, 2022
Will more states follow?