Tagged: finance

finance

Hoax Compels Investment Bigwigs to Bigly Wig Out

In the early morning of January 16, a few hours before announcing their fourth-quarter 2018 earnings, Laurence Fink, CEO of BlackRock, the biggest asset manager on earth, received an email copy of his annual letter to investors. There was just one problem: he had not sent the real one out yet.

The letter, posted to a website made to look like a BlackRock corporate site, was a hoax intended to pressure Fink’s company—the world’s largest owner of fossil fuels including coal—to actively reduce their stake in climate destruction. It went viral on Twitter and was covered by the Financial Times before being revealed as fake. Since then, the hoax has been described in Business Insider, Barron’s, Financial News, and Axios.

The rogue letter, which activists sent to the media and thousands of BlackRock employees, falsely announced that the company would be taking on climate change by laying out a series of feasible steps that would improve global stability and thus long-term returns: First, BlackRock would make all investments screen out fossil fuels by default, so that clients will need to actively opt-into societal and ecological collapse; and second, BlackRock would use its ownership power to compel fossil-fuel companies to align their business models with the Paris Agreement to combat climate change.

“Everything called for in our fake letter are steps BlackRock could take while still remaining model capitalists,” said Jeff Walburn of the Yes Men, who helped author this more visionary version of Fink’s letter. “These slightly less extinction-oriented moves would make more money for investors and ensure their customers have a stable economy to profit from down the line. This is hardly a radical push; but it’s a push we need, for the sake of humanity’s survival and, yes, its asset owners.”

Despite leadership by Fink, a lifelong Democrat who talks about long-term thinking and better corporate governance, BlackRock fails to walk its greenwashy talk. In past letters to investors and CEOs, Fink has repeatedly encouraged action on climate change and berated corporate leaders for short-term thinking that threatens long-term stability. His 2018 letter implored companies to serve a “social purpose” and to “make a positive contribution to society.”

However, BlackRock’s track record contradicts his own ideals. BlackRock owns more fossil fuel stocks than any other company, making them the biggest driver of climate destruction on the planet. It is the largest investor in new coal plants—the most harmful fossil fuel—than any other company, and they have the worst record of any asset manager on shareholder engagement when it comes to transparency and disclosure around climate action.

“This prefigurative nudge we gave BlackRock is the actual rational common-sense adjustment the finance industry needs; it's truly bananas to think large asset managers, with broad based investment products are creating Zombie Funds of the Apocalypse and leading us off the climate cliff,” said Walburn. “BlackRock could fulfill its social purpose by playing a game-changing role in shifting how every global corporation addresses climate change. Or, they and other asset managers can continue with business as usual, funding these world destroyers and encouraging them to continue extracting and burning fossil fuels. Larry Fink knows what to do, he just hasn’t acted on it.”

The Yes Men deployed the hoax after learning about BlackRock’s frightening role in climate calamity from activists behind BlackRock’s Big Problem. To learn more and take action yourself, visit www.blackrocksbigproblem.com. Read the hoax letter here. Read responses from BlackRock here and here.

Larry Fink’s real 2019 letter to CEOs has not yet been released.

 

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February 27, 2013
FOR IMMEDIATE RELEASE

EIB will exclude all future coal finance as part of its new energy policy

Brussels - The European Investment Bank (EIB) will no longer finance coal fired power plants. The decision is being made in the context of the ongoing review of its Energy Lending Policy in order to better align the bank’s operations with the long-term climate objectives of the European Union. The EIB is the largest international financial institution to exclude coal from its lending operations. 
 
Ahead of a presentation in Brussels of the EIB’s 2012 lending activities, EIB president Werner Hoyer said, “In January the Governors of the European Investment Bank unanimously voted to increase the bank’s capital base by EUR 10 billion in order to finance priority sectors including clean energy. Their decision is an unambiguous message that the EIB is committed to achieving the climate objectives of the European Union, including the long-term perspective set out in the 2050 energy roadmap. Restricting support for fossil fuels sends two important signals: a political one to the world that the EIB is a leader on action to combat climate change, and a financial one to the capital markets that the EIB sees energy efficiency and renewable energy as the investments of the future.”
 
In recent years, the EIB has significantly increased its lending to renewables and energy efficiency. In 2010, Climate Action lending had already reached 30 percent of the bank’s overall portfolio, a positive trend which will continue under the new Energy Lending Policy. 
 
The EIB, which last year allocated approximately twenty percent of its EUR 60 billion portfolio, or EUR 13 billion, to the energy sector, will continue to boost its support for energy efficiency and renewable energy projects. As much as 60 percent of EIB lending could be allocated to the Climate Action Programme by 2020.
 
Press Contact:
Philippe Wallace,  +32 484 610 931, p.wallace@europeaninvestmentbank.org
Press office: +32 2840 5948, press@europeaninvestmentbank.org
 
Notes to Editors:
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.

 

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