Blackrock is shifting away from EGS investing

[AdahnGorion]

As the title notes.

What is your opinion? Do you think this is a direct result of consumers or do you think they just want a new direction?

Sources to get an idea about what is happening.
https://raoglobal.org/insights/blackrocks-shift-from-esg-investing-to-transition-a-bold-move-towards-sustainable-transformation
https://www.blackrock.com/us/individual/insights/blackrock-investment-institute/outlook
https://unherd.com/newsroom/despite-blackrocks-retreat-the-esg-battle-hasnt-been-won/

I wonder if this new era will end up having an effect on videogames as well.
Personally I think its a good idea to focus more broadly in the investing.

[Saturn830]

I don't know, but they influence far too much money.

[AdahnGorion]

Originally posted by Saturn830:

I don't know, but they influence far too much money.

It will be interesting to see if Vanguard follow suit.
Vanguard have been bashed alot (just like EGS) for being puppets of various activism regarding EGS and climate skeptics.

[Original Cast Recording]

BlackRock is a top target of right-wing interest groups and Republican lawmakers, who have accused the firm — and specifically Fink — of pushing a so-called “woke” investing trend that does not serve investors' interests.

Lol

[ナルゴ]

Good. Consumers have spoken. ESG must be discarded asap.

[AdahnGorion]

Originally posted by Maximum Disambiguation:

BlackRock is a top target of right-wing interest groups and Republican lawmakers, who have accused the firm — and specifically Fink — of pushing a so-called “woke” investing trend that does not serve investors' interests.

Lol

See this video and you will laugh and maybe even learn something
https://www.youtube.com/watch?v=wRN9UHxKiOM

[Original Cast Recording]

The article literally says

Transition investing represents a shift from solely focusing on companies with ESG best practices to engaging with companies that are actively transitioning their business models towards sustainability. Recognizing the urgent need for bold action to combat climate change, BlackRock's new approach aims to invest in companies that are actively decarbonizing their operations and adapting to a rapidly changing world.

So they plan to help companies along instead of focusing on companies who are already there.

Sounds like they're not abandoning ESG at all.

[AdahnGorion]

Originally posted by Maximum Disambiguation:

The article literally says

Transition investing represents a shift from solely focusing on companies with ESG best practices to engaging with companies that are actively transitioning their business models towards sustainability. Recognizing the urgent need for bold action to combat climate change, BlackRock's new approach aims to invest in companies that are actively decarbonizing their operations and adapting to a rapidly changing world.

So they plan to help companies along instead of focusing on companies who are already there.

Sounds like they're not abandoning ESG at all.

EGS is contradictive in nature and often inhouse made (the same happens with DEI)
Since there is no internaltional standard and you will see various companies that mass pollute, have poor worker safety and still score higher than my local eco veggie farm with high focus on substainability and worker rights...

The point I am trying to put across is that BlackRock is going to focus broader now to not limit themselves and to steer away from the more "hard pressed" EGS score.
They could not invest in many companies if they took EGS seriously.

[Xautos]

Reads more like they are supporting other operations that have a more green theme that are still connected to EGS and dumping companies that no longer align with their goals.

[Veni vidi vici]

They're probably abandoning the name and not the ideology, the right has done a pretty good job of demonizing all the environmental social guidance stuff, most retail investors run the other way as soon as they recognize it

[ZZZZZ]

they were never ESG to begin with lol

[AdahnGorion]

Originally posted by Xautos:

Reads more like they are supporting other operations that have a more green theme that are still connected to EGS and dumping companies that no longer align with their goals.

They are going more broad. The EGS is often pointless due to contradictive scoring, this sometimes exclude companies that should be greenlisted

[LT. Thing]

The only thing i see shifting is my BUNGALOW BEING DRAGGED AWAY IN THE HORIZON BY HOWARD

[Haruspex]

I heard this months ago. They're shifting away from ESG specifically, and they seem to be focusing on just the "E" part of ESG, so expect more greenwashing, but thankfully in games and media, less of the "S" part, so expect lots of companies to start to focus on what they know will sell, rather than what they hope will score them investment funds.

[AdahnGorion]

Originally posted by ZZZZZ:

they were never ESG to begin with lol

There was always EGS, its just that its a terminology that is used contradictive in many situations and its been so extremely politized now, that many do not want to associate with it.

[Morkonan]

Originally posted by Maximum Disambiguation:

The article literally says

Transition investing represents a shift from solely focusing on companies with ESG best practices to engaging with companies that are actively transitioning their business models towards sustainability. Recognizing the urgent need for bold action to combat climate change, BlackRock's new approach aims to invest in companies that are actively decarbonizing their operations and adapting to a rapidly changing world.

So they plan to help companies along instead of focusing on companies who are already there.

Sounds like they're not abandoning ESG at all.

^-- This.

A different article that may spell it out more clearly, including Fisk's statements:

https://www.forbes.com/sites/jonmcgowan/2024/03/27/blackrocks-fink-calls-for-energy-pragmatism-omits-esg-from-annual-letter/

Basically, in a nutshell, it's investing in transition approaches that are pragmatic and also represent the need to not break a system in order to fix it... The consideration allows for more realistic investing in ventures that still move towards the desired goals, but that show consideration for existing, pragmatic, energy needs.

eg: Investing in measures to get rid of banks would not have solved the Banking Crisis... :)