BlackRock, a major investment management firm, has withdrawn from the Net Zero Asset Managers Initiative (NZAMI) amid growing political pressure. The environmental initiative, which has over 300 fund management companies signed up, collectively managing around $50 billion in assets. BlackRock, alone, manages over $10 billion in assets.
The goal of the initiative is to reduce emissions to zero by 2050. Members of the initiative commit to align their investments with the initiative’s environmental target. BlackRock is currently facing a lawsuit for allegedly violating antitrust laws, suspected of forcing US companies to adopt radical goals in the areas of environmental protection, social engagement, and corporate governance.
NZAMI is one of the largest initiatives of its kind. BlackRock’s CEO, Larry Fink, was a strong advocate for using investment tools to control industrial emissions. However, Fink is now distancing himself from the initiative. BlackRock’s competitor, Vanguard, left the NZAMI in 2022.
The Net Zero Banking Alliance also recently experienced a mass exodus of US banks. Major US institutions, including Goldman Sachs, J.P. Morgan, Citigroup, and Morgan Stanley, have withdrawn from the environmental initiative.
Experts see the widespread rejections in the context of the power shift in the White House. Donald Trump has already signaled that he will prioritize the economic interests of the United States over climate protection.