by Eric Lendrum
The asset management company BlackRock, which has been widely criticized for promoting multiple far-left concepts in the world of business, has seen its stock downgraded due to ongoing backlash.
According to The Daily Wire, UBS analyst Brennan Hawken downgraded the company last week due to its support for Environmental, Social, and Corporate Governance (ESG) policies. The target stock price was reduced from $700 to just $585, resulting in a one percent drop in BlackRock shares on Tuesday.
“We are downgrading BLK to Neutral based on environmental pressure to earnings and risk from the firm’s ESG positioning,” Hawken said in a statement, noting that the company could see a further loss of business and greater regulatory scrutiny if it does not change its course.
The move comes after multiple state governments have actively begun divesting hundreds of millions of dollars away from BlackRock due to its support for left-wing causes and programs. South Carolina State Treasurer Curtis Loftis (R-S.C.) announced recently that the state would be pulling $200 million from BlackRock due to its “leftist worldview,” which Loftis said will only serve to “undermine” its fiduciary responsibilities.
Louisiana similarly announced the divestment of $794 million from the company, while Texas pulled funds from BlackRock and nine other companies due to their refusal to work with companies that use fossil fuels, a move which was determined to be in violation of state law.
BlackRock addressed some of the criticisms in a recent letter to multiple state attorneys general, claiming that the company was assuming a “forward-looking position with respect to climate risk and its implications for the energy transition will generate better long-term financial outcomes.” At a recent panel, BlackRock CEO Larry Fink, alongside former President Bill Clinton, claimed that “climate risk is investment risk,” and thus efforts to force companies towards so-called green energy alternatives is necessary for business.
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Eric Lendrum reports for American Greatness.
Photo “Larry Fink” by The World Economic Forum. CC BY-NC-SA 2.0.
