By Andrew A. King and Kenneth P. Pucker
February 25, 2022

Managers of ESG investments create false hope, exaggerate outperformance, and contribute to the delay of long-past-due regulatory action.

In late 2018, while seated on the dais of The New York TimesDealBook Conference, BlackRock CEO Larry Fink declared that“demand for ESG [environmental, social, and governance] is going to transform all investing.” At the time, Fink’s assertion seemed bold. Today it looks prescient. Escalating social and environmental challenges and claims that ESG investing can deliver alpha (outsize market returns) and a more sustainable planet have prompted investors to divert more than $3 billion per day to ESG investment products. According to Bloomberg, ESG investment now represents approximately one third of all professionally managed assets.

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https://www.institutionalinvestor.com/article/b1wxqznltqnyzj/ESG-and-Alpha-Sales-or-Substance

Institutional Investor

On April 8, the National Oceanic and Atmospheric Administration observatory in Mauna Loa, Hawaii, reported that the carbon dioxide levels in the atmosphere had reached 419 parts per million, the highest levels recorded in more than 4 million years. That same day, BlackRock, the world’s largest asset manager, announced another milestone: It had raised $1.25 billion for its U.S. Carbon Transition Readiness ETF, the largest exchange-traded fund in history. The fund is a visceral embodiment of BlackRock CEO Larry Fink’s assertion to clients that the firm “doesn’t see itself as a passive observer” when it comes to combating climate change.

By Kenneth P. Pucker •. September 13, 2021

Read full article: https://www.institutionalinvestor.com/article/b1tkr826880fy2/The-Trillion-Dollar-Fantasy