Louisiana Pulling $794M from BlackRock Funds Over ESG Mandates

In making the announcement, the state treasurer said BlackRock's mandates would cripple Louisiana's energy sector.

By Niket Nishant & Mehr Bedi

Louisiana will pull $794 million out of BlackRock Inc.’s funds, state Treasurer John Schroder said October 5, citing the asset management giant’s push to embrace environmental, social and governance (ESG) investment strategies.

“This divestment is necessary to protect Louisiana from mandates BlackRock has called for that would cripple our critical energy sector,” Schroder said in a statement.

The U.S. state has already withdrawn $560 million from the funds to date, he said.

BlackRock did not immediately respond to a Reuters’ request for comment.

The company, which managed nearly $8.49 trillion of assets as of June 30, has faced criticism from many sides in the debate on low-carbon fuels. Texas Comptroller Glenn Hegar recently flagged BlackRock as a company whose stance on boycotting oil and gas stocks could trigger divestment by public agencies.

While environmentalists have protested that the world’s largest asset manager does too little to press for change at fossil fuel portfolio companies, Republican politicians have accused it of boycotting energy stocks.

This article was provided by Reuters.

Latest news

Bluespring Wealth Partners Acquires Scottsdale, Ariz., firm

Led by husband and wife Kevin and Carrie Dick, KDI Wealth Management oversees $750M in client assets and is rated in the top 10 in state by Forbes.

Judge Halts Rule Capping Credit-Card Late Fees

A federal judge in Texas halted the Consumer Financial Protection Bureau's new rule capping credit card late fees at $8.

Inflation, Economic Uncertainty Upending Retirement Dreams for Many

Nationwide’s Advisor Authority survey finds many are taking non-traditional approaches to retirement, including moving in with their adult children.

Perigon Wealth Management Appoints Head of Advisor Success and Integration

Maria Daley has more than 30 years of experience leading business development and relationship management teams.

SEC Wants RIAs to Verify Customer Identities

The SEC and Treasury say the rule is needed because customers have used RIAs for illicit foreign financial activity in the United States.

Concerns About Insufficient Savings Keep Many Retirees Awake, Survey Finds

Among those in retirement, 32% fear they have too little savings, according to the Schroders 2024 US Retirement Survey.