The state treasurer cited threats to democracy and liberty.
QUICK FACTS:
- The state of Louisiana is divesting its state treasury fronds from investment giant BlackRock, citing economic and political concerns.
- Louisiana state Treasurer John Schroder sent a letter to BlackRock chairman and CEO Larry Fink noting that $560 million has already been divested, which will eventually increase to $794 million.
- Included in Schroder’s complaints was the assertion that BlackRock’s “blatantly anti-fossil fuel policies would destroy Louisiana’s economy.”
- The state treasurer didn’t pull any punches, saying of the investing giant, “I’m convinced that ESG investing is more than bad business; it’s a threat to our founding principles: democracy, economic freedom, and individual liberty. It threatens our democracy, bypasses the ballot box and allows large investment firms to push political agendas.”
- BlackRock’s top leadership promotes globalism, claiming that the work of spreading the ideology falls “on the shoulders of multinational corporations,” of which BlackRock owns and controls trillions of dollars worth. The world’s largest financial asset manager is officially partnered with the Great Reset-advancing World Economic Forum, for which BlackRock CEO Fink serves as a board member (here).
FROM THE STATE’S LETTER:
- “This divestment is necessary to protect Louisiana from actions and policies that would actively seek to hamstring our fossil fuel sector,” Schroder said in his letter to Fink. “In my opinion, your support of ESG investing is inconsistent with the best economic interests and values of Louisiana. I cannot support an institution that would deny our state the benefit of one of its most robust assets. Simply put, we cannot be party to the crippling of our own economy.”
- “In addition, according to my legal counsel, Environmental, Social and Governance (ESG) investing is contrary to Louisiana law on fiduciary duties, which requires a sole focus on financial returns for the beneficiaries of state funds,” the treasury secretary went on. “Focusing on ESG’s political and social goals or placing those goals above the duty to enhance investors’ returns is unacceptable under Louisiana law. A letter signed by 19 state attorneys general sent to you recently emphasized this same point.”
- “You have admitted that your ESG agenda of forcing behaviors will not increase investor returns. Your 2022 letter to CEOs stated plainly that ‘We need to be honest about the fact that green products often come at a higher cost,” Schroder said, quoting the company. “High cost/low return environmental policies will reduce a company’s profits…and investors’ returns.”
- “I’m convinced that ESG investing is more than bad business; it’s a threat to our founding principles: democracy, economic freedom, and individual liberty,” the treasury secretary said near the end of his letter. “It threatens our democracy, bypasses the ballot box and allows large investment firms to push political agendas. It threatens our economic freedom because these firms use their massive shareholdings to compel CEOs to put political motivations above a company’s profits and investors’ returns. Finally, it threatens our personal liberty because these firms are using our money to push their agendas contrary to the best interests of the people whose money they are using! There is a difference between offering an ESG investment option for those investors so inclined, and using other peoples’ non- ESG investments to promote ESG shareholder initiatives.”
BACKGROUND:
- Louisiana isn’t the only state to cut BlackRock free. Texas banned the investing giant along with several other financial firms due to their ESG energy policies.
- In total, 10 finance firms were banned from working in Texas after they were declared hostile to fossil fuels.
- “The environmental, social and corporate governance (ESG) movement has produced an opaque and perverse system in which some financial companies no longer make decisions in the best interest of their shareholders or their clients, but instead use their financial clout to push a social and political agenda shrouded in secrecy,” Texas State Comptroller Glenn Hegar said in a statement.
- ‘U.N. Women’ also cut ties with BlackRock in early September as American Faith previously reported. The group cited too many “concerns raised by civil society” to continue their partnership. The move came after nearly 600 women’s rights organizations in August signed an open letter calling for U.N. Women to back out of its partnership with BlackRock.
