BlackRock Inc. has exited one of the world's biggest climate finance groups for investors, Net Zero Asset Managers Initiative (NZAMI).
BlackRock is the world's biggest asset manager, overseeing over $11 trillion. In a letter sent to its clients, the investment company announced that it would be leaving NZAMI, an international group of asset managers that support the goal of reaching net zero greenhouse gas emissions by 2050 or sooner.
In a letter announcing their departure, BlackRock mentioned their membership in NZAMI "caused confusion regarding BlackRock's practices and subjected us to legal inquiries from various public officials."
Republicans have long rallied against BlackRock’s involvement in climate-related organizations, accusing it of supporting "woke" policies and accusing them of violating antitrust laws.
In 2024, BlackRock announced it was exiting Climate Action 100, another major climate group Republicans urged financial institutions and banks to abandon.
Glenn Hegar (R), the Texas Comptroller of Public Accounts, has been an outspoken critic of BlackRock's involvement in the NZAMI, and the news of BlackRock's exit will likely be credited in large part to Comptroller Hegar and other elected officials in Texas. With BlackRock and several large banks including Bank of America, Citigroup, and Wells Fargo all recently announcing their departure from the Net Zero Asset Managers Initiative/Net Zero Banking Alliance, Republicans in states like Texas and those in Congress will likely move on to identifying other "bad actors" that have not made similar improvements.
BlackRock recently helped invest in the Texas Stock Exchange and made a $500 million investment in Occidental Petroleum to help extend the lifecycle of maturing oil fields in the Permian Basin. With its exit from both NZAMI and Climate Action 100, Texas Republicans are now celebrating the move, expecting the company's change in focus to help Texans and bring major benefits to the Lone Star state.
Matt Mackowiak, Chairman of the Travis County GOP, applauded Texas elected officials following the announcement: “BlackRock leaving another coercive climate initiative is a step in the right direction, and we have great leaders like @Glenn_Hegar, @GovAbbott, & @DanPatrick to thank for leading the charge and holding them accountable.”
