NYC Comptroller Challenges BlackRock Over Climate Concerns

NYC Comptroller Brad Lander recommends rebidding $42.3 billion managed by BlackRock due to climate concerns, challenging Republicans favoring fossil-fuels. His proposal, pending pension board approval, arises before Mayor-elect Mamdani's term. Lander critiques BlackRock's engagement with companies, advocating for responsible investing to combat climate change.

New York City Comptroller Brad Lander has called on pension fund officials to reevaluate $42.3 billion managed by BlackRock due to climate-related issues. This notable move marks the first significant Democratic attempt to counteract the influence of Republicans allied with the fossil-fuel sector on financial institutions.

With Lander's term concluding December 31, his proposition places Mayor-elect Zohran Mamdani in a position of influence over pension boards soon. An internal memo from Lander, shared with other pension fund trustees, raises concerns about BlackRock's approach to engaging with the U.S. companies it invests in, citing a failure to meet expected responsible investing standards.

As BlackRock and other major asset managers face increased scrutiny over environmental policies, New York City could become the first significant Democratic asset owner to align its strategies with Lander's climate-conscious stance. Advocates argue that Lander's initiative will test the incoming administration's commitment to climate action.

(With inputs from agencies.)