BlackRock (BLK) has withdrawn from the Net Zero Asset Managers initiative (NZAMi), a global group of asset managers aiming to achieve net-zero greenhouse gas emissions by 2050. This decision follows growing pressure from U.S. politicians who criticized BLK for focusing on environmental issues over its responsibility to investors.
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The company said that being part of groups like NZAMI caused confusion about its actions and led to legal questions, prompting BlackRock to exit the initiative. It is worth noting that in November 2024, a group of 11 states, led by Texas, filed a lawsuit against BLK, Vanguard, and State Street (STT), accusing them of breaking antitrust laws by working together to limit the coal market and raise electricity prices.
Despite withdrawing itself from the initiative, BLK stays committed to sustainable investing. The firm handles over $1 trillion in these investments and keeps factoring in climate risks in its decisions.
BLK Joins Other Financial Firms Scaling Back ESG Initiatives
This trend of companies cutting back on ESG efforts shows the increasing political pressure to focus on shareholder interests rather than social and environmental issues. BlackRock’s move follows a similar decision by Vanguard Group, which left the same alliance in late 2022.
Further, several major U.S. banks, including Goldman Sachs (GS), Wells Fargo (WFC), Citigroup (C), Bank of America (BAC), and JPMorgan Chase (JPM), have recently exited the Net-Zero Banking Alliance.
Is BLK a Good Stock to Buy?
Turning to Wall Street, BLK has a Strong Buy consensus rating based on 13 Buys and one Hold assigned in the last three months. At $1,151.64, the average BlackRock price target implies 16.79% upside potential. Shares of the company have gained 22.77% over the past six months.
