Sunshine Sentinel

Consumer’s Research issued a warning against BlackRock to the 10 states that have the most money invested with it, saying that the firm has concerning investment ties to Chinese companies. The letter was addressed to Democratic and Republican states alike, warning the governors that their investment puts the security and finances of the public at risk.

The letter signed by Executive Director Will Hild warned states including Florida, Washington, South Carolina, Oklahoma, New York, Pennsylvania, Nevada, Montana, Nebraska and West Virginia. According to right-wing news agency Daily Signal, Florida has invested about $10 billion to BlackRock, which is the second most out of any state pension fund invested in the organization.

“The warning is meant to raise awareness among American consumers that BlackRock is taking their money and betting on China,” Hild wrote. “In so doing they are putting American security at risk, along with billions of dollars from U.S. investors, including many state-run pension plans.”

Hild said that BlackRock has “maintained a bullish approach” by investing billions of dollars in Chinese firms, which supports their economy and helps fuel the military which has recently tested a hypersonic missile. He also denounced China for its ongoing human rights issues.

“Investment in Chinese companies could also make U.S. investors unwitting accomplices in the expansion of the CCP’s surveillance and intelligence gathering apparatus, or worse yet, make them party to human rights abuses like the ongoing genocide against Uyghurs in Xinjiang, China,” Hild wrote.

According to the Wall Street Journal, BlackRock Chairman and CEO Larry Fink’s letter to companies that BlackRock invests in 2022 says that businesses not planning for a carbon-free future risk being left behind. He said it was a focus of BlackRock to lead the transition to “net-zero.” However, according to industrialprogress.com, Fink also said that BlackRock supports the hydrocarbon industry as long as it aided a transition to green energy. He said in his letter that while BlackRock is highly focused on the net-zero goal, “divesting from entire sectors-or simply passing carbon-intensive assets from public markets to private markets-will not get the world to net zero.”

“BlackRock does not pursue divestment from oil and gas companies as a policy,” Fink said in the letter. “We need to be honest about the fact that green products often come at a higher cost." Any plan that focuses only on limiting supply and fails to address the demand for hydrocarbons will drive energy prices up. 

Over the past month or so states have taken a stance against BlackRock. According to SWFi, on Jan. 17 West Virginia Treasurer Riley Moore announced that the Board of Treasury Investments will no longer use BlackRock. This is because the company has urged companies to embrace net-zero investments, with Riley saying that this would harm coal, oil and natural gas industries that the state relies on.

It was reported by Houston Daily that states like Texas have begun to take actions to boycott companies like BlackRock due to discrimination against the oil and gas industry. 

“As you prepare the official list of companies that boycott energy companies, I ask that you include BlackRock, and any company like them, that choose to hurt Texas oil and gas energy companies by boycotting them in violation of Senate Bill 13," Patrick said in a letter to the state comptroller as reported by Houston Daily.