![]() This was why Fink’s slience on the three-letter acronym in his latest 9,000-word missive was what made major news headlines this year. Just last month, insurer Munich Re announced its withdrawal from a related coalition, the Net-Zero Insurance Alliance, citing antitrust risk – another point of contention Republican politicians have with financial institutions collaborating over ESG concerns. ![]() Last year, BlackRock’s biggest rival Vanguard withdrew from the Net Zero Asset Managers, a coalition of companies committed to net-zero emissions by 2050. The recent backlash has led to some high-profile exits from climate-focused alliances. It probably helps that he had a veteran speechwriter who was chief writer for the former United States Treasury Secretary during the financial crisis to hone the messaging in these influential letters.įink’s letters – known for aphorisms like “climate risk is investment risk” and “purpose is the engine of long-term profitability” – have helped popularise the once niche area of environmental, social, and governance (ESG) investing.īut he has also sparked an anti-ESG movement, which reached fever pitch most recently when President Joe Biden issued his first ever veto to reject a Republican proposal that would have prevented retirement fund managers from considering ESG principles when making investment decisions.įor now, the politicisation of ESG seems contained in the US, though investors in Asia have expressed that they expect more political pressure against ESG investing in the future. Larry Fink’s annual letter to the finance industry has become a highly-anticipated event for investors in recent years.Īfter all, Fink heads BlackRock, the largest money manager in the world overseeing over US$8 trillion in assets.
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