Latest news with #RossKerber
Yahoo
3 days ago
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BlackRock removed from Texas boycott list after quitting climate groups
By Ross Kerber (Reuters) -Texas on Tuesday removed BlackRock from a list of companies seen as boycotting the energy industry, a step the New York asset manager won only with steep cuts to its climate ambitions. Texas Comptroller Glenn Hegar said the decision reflected BlackRock's retreats from industry climate groups like the Net Zero Asset Managers initiative. He also noted how the firm has lowered its support for shareholder environmental resolutions and backed a new Texas Stock Exchange. BlackRock "has acknowledged the real social and economic costs, both here in Texas and globally, that come from limiting investment in the oil and gas industry," Hegar said in a statement. The delisting will make it easier for Texas state agencies and funds to do business with the top asset manager. It could also help BlackRock answer claims brought by Texas Attorney General Ken Paxton over its environmental record. BlackRock representatives did not immediately comment. Hegar had added BlackRock and various European managers to his list in 2022 under a state law passed the prior year in response to Wall Street's embrace, at the time, of environmental and social investment priorities. Faced with the political pressure, various BlackRock rivals had also left industry climate groups and cut back on their support for shareholder resolutions, which called for changes like emissions cuts or limits. Democratic leaders and climate activists have accused the companies of going soft on their support for environmental matters they once touted. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
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BlackRock removed from Texas boycott list after quitting climate groups
By Ross Kerber (Reuters) -Texas on Tuesday removed BlackRock from a list of companies seen as boycotting the energy industry, a step the New York asset manager won only with steep cuts to its climate ambitions. Texas Comptroller Glenn Hegar said the decision reflected BlackRock's retreats from industry climate groups like the Net Zero Asset Managers initiative. He also noted how the firm has lowered its support for shareholder environmental resolutions and backed a new Texas Stock Exchange. BlackRock "has acknowledged the real social and economic costs, both here in Texas and globally, that come from limiting investment in the oil and gas industry," Hegar said in a statement. The delisting will make it easier for Texas state agencies and funds to do business with the top asset manager. It could also help BlackRock answer claims brought by Texas Attorney General Ken Paxton over its environmental record. BlackRock representatives did not immediately comment. Hegar had added BlackRock and various European managers to his list in 2022 under a state law passed the prior year in response to Wall Street's embrace, at the time, of environmental and social investment priorities. Faced with the political pressure, various BlackRock rivals had also left industry climate groups and cut back on their support for shareholder resolutions, which called for changes like emissions cuts or limits. Democratic leaders and climate activists have accused the companies of going soft on their support for environmental matters they once touted. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Business
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US supports Republican states' argument in BlackRock climate case
By Jody Godoy and Ross Kerber (Reuters) -U.S. federal antitrust enforcers expressed support on Thursday for arguments wielded by Republican states that accuse asset managers BlackRock, Vanguard and State Street of conspiring through climate activism to decrease coal output. The U.S. Department of Justice and Federal Trade Commission filed a statement of interest in the case where Texas and 12 other states claim the companies used their substantial holdings in U.S. coal companies to discourage competition. The entry of the federal officials raises the stakes for the case that tests how freely the three fund firms may act with the combined $27 trillion they manage for investors. The companies have denied wrongdoing and called the case "half-baked." In recent years, they have reduced their focus on climate and social issues while maintaining substantial investments in fossil fuel companies. Nonetheless, the agencies on Thursday urged the judge overseeing the case in Tyler, Texas, to reject several of the arguments the asset managers made in their bid to dismiss the case, including that the alleged conduct falls under an exemption for passive investors. In their court brief, the agencies cited allegations the fund firms' conduct raised U.S. energy prices. "This case is about precisely the sort of conduct, including concerted efforts to reduce output, which have long been condemned under the antitrust laws," the agencies said. Assistant Attorney General Gail Slater, who leads the DOJ's antitrust division, and FTC Chairman Andrew Ferguson said in statements that competition in coal is important to U.S. President Donald Trump's goal of American energy dominance. BlackRock said that forcing asset managers to divest from coal companies -- one outcome sought by the state plaintiffs -- would harm the companies' access to capital and likely raise energy prices. "The DOJ and FTC's support for this baseless case undermines the Trump Administration's goal of American energy independence," BlackRock said. State Street said it acts in the long-term interests of investors and called the lawsuit "baseless." Vanguard reiterated its prior comment that it would defend its history of safeguarding returns for investors. The Investment Company Institute, an industry trade group, said it was "very troubled by the implications of the specious arguments" in the filing in support of the suit the group said risks major problems for funds, investors and energy companies. The agencies, the ICI said, are "pushing an expansive reading of antitrust law that would chill ordinary investment activity." Reuters first reported earlier on Thursday that the agencies were expected to support the states' development marks a political setback for the three managers, already under fire from conservative Republicans, many from energy-producing states. There were signs of thawing relations in February when BlackRock led a consortium to buy ports near the strategic Panama Canal, a deal hailed by Trump. In addition, U.S. energy regulators in April renewed BlackRock's permission to own major stakes in public utility companies. U.S. District Judge Jeremy Kernodle is scheduled to hear arguments on the asset managers' bid to dismiss the case in June.
Yahoo
22-05-2025
- Business
- Yahoo
Exclusive-US expected to support Republican states' argument in BlackRock climate case
By Jody Godoy and Ross Kerber (Reuters) -U.S. federal antitrust enforcers were expected to express support on Thursday for arguments wielded by Republican states that accuse asset managers BlackRock, Vanguard and State Street of conspiring through climate activism to decrease coal output, two sources familiar with the matter told Reuters. The U.S. Department of Justice and Federal Trade Commission were expected to file a statement of interest in the case where Texas and 12 other states claim the companies used their substantial holdings in U.S. coal companies to discourage competition. The development marks a political setback for the top asset managers. With some $27 trillion among them, BlackRock, Vanguard and State Street have come under fire from conservative Republicans, many from energy-producing states, who say the firms wrongly put environmental and social concerns above maximizing returns for their customers.
Yahoo
24-04-2025
- Business
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Trump agenda drives record outflows from global sustainable funds, Morningstar says
By Ross Kerber (Reuters) -Investors withdrew a record $8.6 billion from global sustainable funds in the first quarter, researcher Morningstar said on Thursday, attributing the outflows largely to the shift against climate and social initiatives by U.S. President Donald Trump. The biggest driver of the outflows came in Europe, which still accounts for most of the $3.16 trillion in the funds globally. Net withdrawals from European sustainable funds reached $1.2 billion in the first quarter, a reversal from net deposits of $20.4 billion in the prior quarter and the first net outflows for the region since at least 2018. Trump's return to the White House deprioritized sustainability goals in Europe, Morningstar said in its report, and his actions like executive orders against diversity, equity and inclusion (DEI) efforts have created new legal risks. Fund performance concerns in areas like clean energy also helped drive out money, Morningstar wrote. U.S. withdrawals were $6.1 billion in the first quarter, the tenth consecutive quarter of withdrawals. "The quarter signals a shift, not just in flows, but in how sustainable investment strategies are being perceived and positioned in the market,' said Hortense Bioy, head of sustainable investing research at Morningstar Sustainalytics, in a note accompanying the report. "We're seeing further signs of consolidation, rebranding activity, and cautious product development, amid an intensifying ESG backlash in the U.S. which is now also noticeably affecting sentiment in Europe," Bioy said. New sustainable product launches were 54 in the first quarter, about half of the 105 launched the prior quarter. Asset managers rebranded 335 sustainable funds in the first quarter such as by dropping or changing their environmental, social or governance terms, more than twice as many as in the prior quarter. Sign in to access your portfolio
