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LONDON, Oct 18 (Reuters) – BlackRock, the
world’s biggest asset manager, told a British parliamentary
committee that it will not stop investing in coal, oil and gas,
and that its role was not to “engineer a specific
decarbonization outcome in the real economy.”
The response was part of tens of statements from companies
to the Environmental Audit Committee, which is examining the
role of financial institutions, including UK signatories to the
Glasgow Financial Alliance for Net Zero (GFANZ). The responses
were published on the government’s website.
The GFANZ calls itself the world’s largest coalition of
financial institutions committed to transitioning the global
economy to net-zero greenhouse gas emissions, with 500 members
from over 45 countries.
When asked by the committee whether it would support a
net-zero scenario that called for “no new investment is needed
in coal, oil, and gas,” BlackRock said: “No.”
“BlackRock’s role in the transition is as a fiduciary to our
clients it is not to engineer a specific decarbonization
outcome in the real economy,” said the New York Stock
Exchange-listed company with a market value of $85.65 billion,
which manages assets worth about $8 trillion.
Another responder HSBC, which has also been
attacked by climate activists, said continued investment in
existing sources of oil production was needed. It said an abrupt
shift away from coal would hurt many Asian and developing
economies where more people depend on coal.
BlackRock’s boss Larry Fink has defended the company’s
energy investments from criticism from many sides in the debate
on low-carbon fuels.
“BlackRock is developing tools that help our investors and
clients assess how the transition is likely to unfold and to
support clients navigation of the transition and for those
who choose to accelerate it.”
Environmentalists have protested that BlackRock does too
little to press for change at fossil fuel portfolio companies,
while Republican U.S. politicians have accused it of boycotting
energy stocks.
On another question about the company’s policy on the
retirement of the fossil fuel assets it held, BlackRock told the
UK committee that it expected to remain long-term investors on
behalf of clients in carbon-intensive sectors.
Vanguard, another major investment manager, told the
committee it does not have an overall approach nor any firm-wide
policies related to fossil fuel exclusion, and does not have an
“enterprise view” on the scenario that called for no new
investment in coal, oil and gas.
(Reporting by Muvija M; Editing by David Gregorio)
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