BlackRock, the world’s largest fund manager with US$6.5 trillion of assets under management – bigger in value than the third largest economy in the world – continues to ignore the serious financial risks of putting money into fossil fuel-dependent companies, a new report has found. Produced by the Institute for Energy Economics and Financial Analysis (IEEFA), the report places a price tag on BlackRock’s fossil fuel-heavy strategy – saying the firm’s failure to effectively address risk has lost investors over US$90 billion in value destruction and opportunity cost from just a select few holdings over the past decade. Entitled Inaction is BlackRock’s Biggest Risk During the Energy Transition: Still Lagging in Sustainable Investing Leadership, the report exposes the global company as failing in value creation for investors and as a laggard in sustainable finance.
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