BlackRock says "no" to the UK!

BlackRock (NYSE:BLK), the world's largest asset manager, told a British parliamentary committee that it will not stop investing in coal, oil and gas and that its role is not to "engineer a specific decarbonization outcome in the real economy."

The response was part of dozens of statements from companies to the Environmental Audit Committee examining the role of financial institutions, including UK signatories to the Glasgow Finance Alliance for Net Zero (GFANZ). The responses were published on the government website. GFANZ describes itself as the world's largest coalition of financial institutions committed to transitioning the global economy to net zero greenhouse gas emissions, with 500 members from more than 45 countries. When asked by the committee whether it would support a net-zero scenario, which calls for "no new investment in coal, oil and gas," BlackRock said, "No." "BlackRock's role in the transition is a fiduciary duty to our clients - not to engineer a specific decarbonization outcome in the real economy," said the New York Stock Exchange-listed company, which has a market capitalization of $85.65 billion and manages assets worth about $8 trillion. HSBC, which has come under attack from climate activists, said investment in existing sources of oil production should continue. It said a sudden shift away from coal would hurt many Asian and emerging economies, where more people depend on coal. BlackRock boss Larry Fink defended the company's energy investments against criticism from many sides in the debate over low-carbon fuels. "BlackRock is developing tools to help our investors and clients assess how the transition will unfold, and to help clients navigate the transition and - for those who wish - accelerate it." Environmentalists claim BlackRock has done little to push for change in its fossil fuel portfolio companies, while Republican US politicians accuse the company of boycotting energy stocks. In response to another question about the company's policy on retiring fossil fuel assets, BlackRock told the UK committee that it expects to remain a long-term investor on behalf of its clients in carbon-intensive sectors. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!