BlackRock’s Fink says ESG narrative has become ugly, personal

BLACKROCK’S chief executive officer Larry Fink said that the narrative around environmental, social and governance (ESG) investing has become ugly, and is creating “huge polarisation”.

“I’m taking this very seriously,” he said at the World Economic Forum in Davos. “We are trying to address the misconceptions. It’s hard because it’s not business anymore – they’re doing it in a personal way. And for the first time in my professional career, attacks are now personal. They’re trying to demonise the issues.”

Fink has been outspoken about investing with ESG goals, making it a focal point in his annual letters to the industry. The firm has become a political punching bag for forces on both ends of the spectrum. Some on the right allege that its policies harm the fossil-fuel industry; others on the left argue that it is not doing enough to respond to climate change.

To manage the fallout, the asset manager poured record sums into US political campaigns last year, mounted an advertising campaign to explain its business of managing money for retirees, and brought on additional lobbyists in Texas and Washington.

“We are doing everything we can to change the narrative,” he said, adding that he plans to write a letter in this quarter to business leaders that will focus on the “concept of hope”. 

BlackRock’s assets under management, which crossed the US$10 trillion threshold at the end of 2021, stood at US$8.6 trillion at the end of December, despite inflows into its funds during the fourth quarter. BLOOMBERG