Catenaa, Friday, January 10, 2025 – BlackRock, the world’s largest asset manager, has withdrawn from the Net Zero Asset Managers (NZAM) initiative, citing political scrutiny and legal challenges.
The move follows similar exits by major US banks from the Net-Zero Banking Alliance after Donald Trump’s election as president.
This also come in the back drop where energy hungry crypto are increasingly gaining institutional recognition as major Banks and Financial Institutions adopting cryptocurrencies as part of their reserves.
In a letter to clients, BlackRock vice-chair Philipp Hildebrand explained that NZAM membership had caused confusion about the firm’s practices and triggered legal inquiries.
Critics argue the departure reflects a retreat from earlier climate commitments, with progressive groups labeling BlackRock’s prior sustainability stance as performative.
While BlackRock maintains its portfolio management approach will still assess climate-related risks, the firm faces growing criticism from both conservative and progressive factions. The exit underscores the mounting challenges financial institutions face in balancing climate commitments with political and regulatory pressures.
While cryptocurrencies have their advantages, many have raise concerns the power/energy consumption they demand as an environmental concern.
