Thread by @BLKsBigProblem

BlackRock continues steps in the right direction, but falls short of the visionary leadership needed: Our response to the letters that @BlackRock CEO Larry Fink issued today to CEOs and clients:

blackrocksbigproblem.com/larrys-letter/

With nearly $9 trillion in managed assets, @BlackRock has the power and responsibility to push for a sustainable future. These letters indicate some steps in the right direction for the financial giant, but fall short of the visionary leadership the world needs right now.

It’s important that the largest financial institution in history is acknowledging the urgent, moral, and financial imperative to address runaway climate change. This is progress from the @BlackRock of 2 years ago...

We see references to interim targets today, but @BlackRock hasn’t offered a clear pathway toward reducing the carbon in its massive portfolio. This language needs to be backed up with concrete actions, like dropping companies that are expanding fossil fuel production.

Similarly, announcing consequences for companies that don’t make significant climate progress is a great step for @BlackRock. But today’s announcement leaves a LOT unsaid. What is the timeline for consequences? What exactly will count as significant progress?

#NetZero can be problematic without more clarity. BlackRock could leave the door wide open for investments that continue to drive the overlapping crises of climate change, deforestation, species extinction and habitat loss, and egregious violations of Indigenous Peoples’ rights.

And @BlackRock’s $24bn current investments in coal expansion are a perfect illustration of how investors can hide behind ESG credentials and #NetZero commitments while investing in building new fossil fuel sources that we know we cannot afford.

And #NetZero is NOT zero if it relies on increasing investments in polluting biofuels and biomass electricity, expanding tree plantations, and priming the market for dubious offset schemes and other carbon accounting tricks. @BlackRock has to break with the extractive economy.

There is also an urgent need to address human rights and racial justice with more than just rhetoric. It is unacceptable that @BlackRock remains silent on how it will address the impacts of fossil fuel extraction and deforestation on communities and activists.

@BlackRock can’t invest huge 💵💵💵 in coal, tar sands, and deforestation commodities and claim to care about racial justice. These companies pollute air, water, and land, which lead to lower life expectancy rates and higher rates of diseases in BIPOC communities.

Also: private commitments are not a substitute for public action. If @BlackRock is committed to a financial system that is “more resilient, sustainable, and equitable”, then their industry groups must not oppose efforts by governments to regulate their impacts on the climate.

Climate is clearly becoming a legacy issue for @BlackRock’s Larry Fink, and the world would be better off if the issue of climate justice became a priority for @StateStreet CEO Ronald O'Hanley and @Vanguard_Group’s Tim Buckley, who are now woefully behind.

It is great that Fink and @BlackRock are moving in the right direction with these initial steps. Change doesn’t happen overnight, and it doesn't happen on its own.

This shows that our pressure is working – let's keep it up!

Rounding out the 🧵: read our in-depth analysis of Larry Fink's latest annual letters and @BlackRock's new climate commitments 👉 blackrocksbigproblem.com/larrys-letter-…

#BlackRocksBigProblem #ClimateAction #StopTheMoneyPipeline