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  • By The Financial District

Florida Pulls $2-B From Blackrock Over ESG Policies

Florida's chief financial officer (CFO) said on Thursday, Dec. 1, 2022, his department would pull $2 billion worth of its assets managed by BlackRock Inc., the biggest such divestment by a state opposed to the asset manager's environmental, social and corporate governance (ESG) policies, Ross Kerber reported for Reuters.


Photo Insert: While the move will hardly dent BlackRock's $8 trillion in assets, it underscores how the backlash among many Republican politicians, such as those in Florida, against ESG investing.



While the move will hardly dent BlackRock's $8 trillion in assets, it underscores how the backlash among many Republican politicians, such as those in Florida, against ESG investing, which they see as promoting a "woke agenda" is gathering steam.


Republicans are set to assume control of the House of Representatives in January. This will allow them to hold hearings on ESG and grill the chief executives of BlackRock and other major assets managers about their ESG policies, and also pressure regulators to scrutinize them.



Florida CFO Jimmy Patronis said the state's Treasury, which he oversees, would remove BlackRock as manager of about $600 million of short-term investments and have its custodian freeze $1.43 billion of long-term securities now with BlackRock, with an eye on reallocating the money to other money managers by the start of 2023.


"Florida's Treasury Division is divesting from BlackRock because they have openly stated they've got other goals than producing returns," Patronis said in the statement provided by his office.


All the news: Business man in suit and tie smiling and reading a newspaper near the financial district.

While BlackRock has encouraged portfolio companies to take steps like disclosing more data about their carbon emissions or to add more diverse board members, it has said its efforts are aimed at improving company performance and resisted calls for steps like divesting from oil companies.


US Democratic officials have argued BlackRock doesn't press ESG concerns enough.



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