BlackRock might not be breaking up with Environmental, Social, and Governance (ESG) investing quite yet.  

A new Wall Street Journal report reveals the financial asset manager, one of the “Big Three” alongside State Street and Vanguard, is still banking on clean energy investments aligned with net-zero energy goals but under a new moniker: transition investing.

Transition investing, the publication notes, is defined as directing “billions of client dollars toward infrastructure projects that will help speed the transition from fossil fuels.” 

Unlike ESG—which calls for changes to corporate behavior and engages in divisive social issues—transition investing has been billed as “specific” and “concrete” by BlackRock’s Head of Global Client Business Mark Wideman, who is seen as a potential successor to CEO Larry Fink. 
As I recently noted here at IWF, financial institutions like BlackRock are reassessing their association with ESG outfits like Climate Action 100+.

BlackRock, a notorious ESG cheerleader, also reassessed its membership in the compact. In its recent 10-K filing with the Securities and Exchange Commission (SEC), the financial asset manager warned ESG postering might “adversely impact its reputation and business.” 

ESG discourages companies from investing in traditional energy and agriculture companies. 

The push for clean energy investments isn’t without consequences, however. En-flation, or environmental inflation, has largely contributed to inflationary pressures today because it creates a chain reaction that leads to exorbitant energy prices that ultimately get passed down to consumers. And a new Buckeye Institute report also found ESG has deleterious effects on agriculture, as farmers will see an increase, upwards of 34%, in their operations in order to comply with net-zero emissions goals. 

Whether it’s ESG or “transition investing,” consumers are increasingly skeptical of institutions—be it corporations or the federal government—forcing behaviors on them. Even the financial institutions that eagerly embraced the investment strategy liquidated at least two dozen ESG funds last year.

To learn more about ESG, go HERE.