The Louisiana…Sale?

We’ve written about how controversial the topic of environmental, social, and governance (ESG) investment strategies are. And after a lot of hemming and hawing, we’re finally seeing a major player take action express their views on the subject. 

Louisiana’s state Treasurer John Schroder said the state is pulling $794 million out of BlackRock Inc’s funds. Regarding the decision, the primary reason cited was the asset management firm’s push to embrace ESG strategies. 🌎

Schroder said in a statement: “This divestment is necessary to protect Louisiana from mandates BlackRock has called for that would cripple our critical energy sector.”

The roughly $800 million will not put a dent in BlackRock’s more than $8 trillion in assets under management. However, the state’s move could spark others to follow suit. As we’ve seen, many people and organizations talk, but rarely walk the walk. If there are organizations that dislike how asset managers apply their ESG mandates/views, this could be the push they need to begin expressing those views in dollars. 💰

BlackRock has yet to comment, so we’ll have to see how this develops and will keep you updated.